Obama’s False Claim to Positive Economic Growth Exposed
By: Stacy Coleman
January 31, 2012
In the recent State of the Union address, President Obama made some pretty bold claims. He said we have made some strides in improving our economy. I intend to expose this lie, he told to the American people. Here is President Obama in his own words. The full speech can be read at WhiteHouse.gov:
“It was wrong. It was irresponsible. And it plunged our economy into a crisis that put millions out of work, saddled us with more debt, and left innocent, hardworking Americans holding the bag. In the six months before I took office, we lost nearly 4 million jobs. And we lost another 4 million before our policies were in full effect.
Those are the facts. But so are these: In the last 22 months, businesses have created more than 3 million jobs. (Applause.)
Last year, they created the most jobs since 2005. American manufacturers are hiring again, creating jobs for the first time since the late 1990s. Together, we’ve agreed to cut the deficit by more than $2 trillion. And we’ve put in place new rules to hold Wall Street accountable, so a crisis like this never happens again. (Applause.)
The state of our Union is getting stronger. And we’ve come too far to turn back now. As long as I’m President, I will work with anyone in this chamber to build on this momentum. But I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place.”
I will give him the benefit of the doubt, because the economy was in jeopardy when he took office. The policy to aid, that was also nearly in place before he actually took his oath, goes without saying. I am asking you to focus on these specific parts of certain portions of his speech.
First, I want to look at this claim, “Together, we’ve agreed to cut the deficit by more than $2 trillion.” According to Politico, the debt will still yet be increasing by $1.079 trillion. The full article at on the deficit at Politico.com:
“The government faces a fourth year of trillion-plus deficits in 2012, according to new projections released Tuesday—numbers which also show little relief in the future unless Washington comes to grips with needed changes in its tax and spending policies. Like Aunt Cassandra coming down from the attic, the Congressional Budget Office steps squarely into the 2012 campaign season with the 147-page report which might have been subtitled “It’s not just the economy stupid, it’s also the debt.”
The $1.079 trillion deficit now projected for this fiscal year ending Sept. 30 is a step backwards from what CBO had predicted in August. And to punch home its message, the non-partisan agency outlines, an especially grim scenario in which Congress not only extends all the current Bush-era tax cuts but pulls the plug on the $1.2 trillion in sequester set in motion by the Budget Control Act last summer.”
With that in mind, just how honest was the sitting President with the American people?
Now, let us turn our attention to this part of the speech just a few weeks removed from its presentation. Once again his quote, “In the last 22 months, businesses have created more than 3 million jobs.” Let’s really look at that statement in the latest report from Congress, that our real unemployment is at 10%. This is substantially higher than their claims of around 8.5%. The full article can be read at ZeroHedge.com:
“Had that portion of the decline in the labor force participation rate since 2007 that is attributable to neither the aging of the baby boomers nor the downturn in the business cycle (on the basis of the experience in previous downturns) not occurred, the unemployment rate in the fourth quarter of 2011 would have been about 1¼ percentage points higher than the actual rate of 8.7 percent.”
With that being said, you would have to add 1.25 to 8.7 to get the real number on unemployment. In his speech, he also added in his own words, “The state of our Union is getting stronger.” Really? Let’s move on to another gauge for a good economy. The housing market is the gauge I am speaking of here. According to Reuters, the outlook is bleak. The full article can be read at Reuters.com:
“(Reuters) – Home prices fell more steeply than expected in November, and consumers turned less optimistic in January, highlighting the hurdles still facing the bumpy economic recovery. After accelerating at its fastest pace in 1-1/2 years at the end of 2011, the U.S. economy is expected slow in early 2012.
The S&P/Case-Shiller composite index of single-family home prices in 20 metropolitan areas, released on Tuesday, declined 0.7 percent on a seasonally adjusted basis, a bigger drop than the 0.5 percent economists expected.
The decrease added on to the 0.7 percent decline in October from September.”
America’s whole economy rests on the fact that the housing market is running in a positive direction, as this spurs on manufacturing and the construction industry. This does not even mention those who buy homes as investments. Anyone negatively impacted by our housing market will be feeling the effects from this for a long time to come. The only way the housing market will recover, will be contingent on correction of the housing market flailing, and at this time, there is no correction in sight. Things like our banking system, unemployment, and confidence in the market, all have a part to play.
President Barack Obama has always claimed he would fundamentally transform America. He has always surrounded himself with people of questionable motives and pasts. This fact has been proven by several different people and by many different sources. We, as American citizens, always need to be vigilant in thoroughly checking the information that Mr. Obama shares against the facts as they present themselves. Never take his word for anything, instead we must verify them for ourselves. We must, also, learn to do the job the media will not. As Americans, we have slowly been waking up, which is a very good thing.
When you get into anything this President says, you can just look at the presented information and poke holes into everything he claims. With the information I provided, does it look like we as a nation are getting a stronger economy? I still like to use the old trusty question: Is America better off now than we were three years ago? America, I fully believe that if we get the right people in office, we can still turn this country around. May God Bless America!!!
“Annuit Coeptis” ~ Amen