The stagnation president.
Sep 30, 2013, Vol. 19, No. 04 • By FRED BARNES
He insists the $821 billion “stimulus” package stopped the “downward spiral and put a floor under the fall.” But the recession was over by June 2009, well before the bulk of the stimulus had been implemented. Instead, the Federal Reserve had flooded the economy with liquidity, and the big banks had been bailed out, before Obama was inaugurated. The crisis had been largely quelled without his help.
There’s another fantasy in Obama’s economic dreams: He’s the savior of a beleaguered middle-class America that hasn’t gained economically in many years. “We also started pushing back against trends that have been battering the middle class for decades,” he said in last week’s speech. The rich got 20 percent of national income in 2012, “while the average worker isn’t seeing any raise at all,” he added. “In fact, that understates the problem.”
It overstates the situation and distorts it. The idea of a faltering middle class has been debunked frequently by AEI’s Pethokoukis. Now he has the Census Bureau to back him up. It pegged “real median household income”—a proxy for middle-class income—as rising during the boom years from 1983 through 2007.
The median income was $51,017 in 2012, close to what it was in 2011 but below the $55,627 level in 2007 (before the recession). The peak was $56,080 in 1999. “The Census Bureau is just tracking pre-tax, pre-transfer, non-fringe-benefit market income,” Pethokoukis wrote. So, the bureau said, median income “does not completely capture the economic well-being of individuals and families.”
Note that household income has fallen in the Obama years, as it did in George W. Bush’s second term. From this, I draw a simple conclusion. Middle-class Americans don’t need to be protected by Obama. They need to be protected from him.
Fred Barnes is an executive editor at The Weekly Standard.
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