Thanks, Obama! Incomes Fall $3,040 During ‘Recovery’

September 28, 2012

Americans must be wondering how much more of this “recovery” they can afford.

New figures from the Census Bureau’s Current Population Survey, compiled by Sentier Research, show that the typical American household’s real (inflation-adjusted) income has actually dropped 5.7 percent during the Obama “recovery.”

Using constant 2012 dollars (to adjust for inflation), the median annual income of American households was $53,718 as of June 2009, the last month of the recession.  Now, after 38 months of this “recovery,” it has fallen to $50,678 — a drop of $3,040 per household.

Yet it gets worse.  Amazingly, incomes have dropped even more during the “recovery” than they did during the recession.

In fact, they’ve dropped more than twice as much as they did during the recession.  From the start to the end of the recession, the real median income of American households fell $1,413, or 2.6 percent.

From the end of the recession to the present day, it has dropped $3,040, or 5.7 percent.  This begs the question:  What kind of “recovery” compares unfavorably with the recession from which it’s ostensibly recovering?

Two of the groups hit hardest have been ones that turned out in abundance for Obama in 2008:  black Americans and younger Americans (those between the ages of 25 and 34).

During the first three years of the Obama “recovery,” the real median household income for black Americans dropped a whopping 11.1 percent.  For Americans between the ages of 25 and 34 — the group most apt, as Paul Ryan put it, to be “staring up at fading Obama posters” and looking to “get going with life” — real median household income dropped 8.9 percent.

Moreover, we’re still not headed in the right direction.  Last month, American households’ real median annual income fell by another $543 — from $51,221 to $50,678.

Sentier’s Gordon Green, former chief of the Governments Division at the Census Bureau, says, “This latest decline in real median annual household income is indicative of a struggling economy.”  He adds that, while we are “technically” in a recovery, “real median annual household income is having a difficult time maintaining its present level, much less ‘recovering.’”

Similarly, the percentage of Americans who are employed has dropped during the Obama “recovery” — from 59.4 percent during the final month of the recession to just 58.3 percent last month.  That’s according to the Obama administration’s own figures.

So, to recap, compared to the last month of the recession (in June 2009), the percentage of Americans who are employed has dropped 1.1 points, and typical Americans’ real annual household income has dropped $3,040.  Who knew how good we had it back in the glory days of the Great Recession?

No wonder Obama says he’s running for reelection because he wants to realize “the future we imagined in 2008.”  He can’t very well run on the reality we’re experiencing in 2012.

From:  http://www.weeklystandard.com/blogs/americans-incomes-have-fallen-3040-during-obama-recovery_653116.html


Thanks, Obama! Durable Goods Drop Worst Since Recession

September 28, 2012

New orders for long-lasting U.S. manufactured goods in August fell by the most in 3-1/2 years, pointing to a sharp slowdown in factory activity even as a gauge of planned business spending rebounded.

The Commerce Department said on Thursday durable goods orders dived 13.2 percent, the largest drop since January 2009, when the economy was in the throes of a recession. Orders for July were revised down to show a 3.3 percent increase instead of the previously reported 4.1 percent gain.

Economists polled by Reuters had expected orders for durable goods — items from toasters to aircraft that are meant to last at least three years — to fall 5 percent.

Last month, the drop in orders reflected weak aircraft and automobiles demand. Boeing received only one aircraft order in August, down from 260 in July, according to information posted on the plane maker’s website.

Transportation equipment tumbled 34.9 percent after racing ahead 13.1 percent in July. Excluding transportation, orders fell 1.6 percent after dropping 1.3 percent the prior month. Economists had expected this category to rise 0.3 percent after a previously reported 0.6 percent fall.

From:  http://www.reuters.com/article/2012/09/27/us-usa-economy-durables-idUSBRE88Q0S720120927


Thanks, Obama! Campbell Soup Shutting Down Oldest Soup Plant in U.S.; 700 Jobs Being Cut

September 28, 2012

ImageThe Campbell Soup plant in Sacramento is closing as of July 2013 as the company says it is taking steps to “improve supply chain productivity,” according to a company release.

Employees were told of the closure during a 6 a.m. meeting Thursday at the plant.

“We employ about 700 people at the Sacramento plant and unfortunately those jobs will be eliminated,” said Campbell Soup Company spokesperson Anthony Sanzio. “This is a tough day for the company, for the employees. No one likes to do this.”

The company says the Sacramento plant, built in 1947, is the oldest in its network and has the highest production costs on a per-case basis.

Many of the employees at the plant have worked there their entire lives, and several told CBS13 they had no idea what they’d do next.

“This is devastating, really devastating,” worker Valerie Starr said. “A lot of us have been working here for years and we’re at that age where it’s hard to find other jobs.”

From:  http://sacramento.cbslocal.com/2012/09/27/campbell-soup-is-shutting-down-sacramento-plant/

 


Vote for Obama Because He Gives Free Cell Phones for Minorities

September 28, 2012

Obama voter says to vote for Obama because he gives free cell phones to minorities…


Thanks, Obama! GM Goes From Bad to Worse Since the Bailout

September 7, 2012

Readers with long memories may recall that Charles E. Wilson, president of General Motors and nominee for secretary of defense, got into trouble when he told a Senate committee, “What is good for the country is good for General Motors, and what’s good for General Motors is good for the country.”

 

That was in 1953, and Wilson was trying to make the point that General Motors was such a big company — it sold about half the cars in the U.S. back then — that its interests were inevitably aligned with those of the country as a whole.

 

Things are different now. General Motors’ market share in the U.S. is below 20 percent. It has gone through bankruptcy and exists now thanks to a federal bailout. But Barack Obama seems to think that it’s as closely aligned with the national interest as Wilson did.

 

“When the American auto industry was on the brink of collapse,” Obama told a campaign event audience in Colorado earlier this month, “I said, let’s bet on America’s workers. And we got management and workers to come together, making cars better than ever, and now GM is No. 1 again and the American auto industry has come roaring back.”

 

His conclusion: “So now I want to say that what we did with the auto industry, we can do in manufacturing across America. Let’s make sure advanced, high-tech manufacturing jobs take root here, not in China. Let’s have them here in Colorado. And that means supporting investment here.”

 

Was he calling for a federal bailout of other American manufacturing companies? And what does he mean by “supporting investment”? White House reporters have not asked these obvious questions, for the good reason that the president, who has been attending fundraisers on an average of one every 60 hours, has not held a press conference in something like two months.

 

Obama talks about the auto bailout frequently, since it’s one of the few things in his record that gets positive responses in the polls. But he’s probably wise to avoid probing questions, since the GM bailout is not at all the success he claims.

 

GM has been selling cars in the U.S. at deep discount and, while it’s making money in China — and is outsourcing operations there and elsewhere — it’s bleeding losses in Europe. It’s spending billions to ditch its Opel brand there in favor of Chevrolet, including $559 million to put the Chevy logo on Manchester United soccer team uniforms — and just fired the marketing exec who cut that deal.

 

It botched the launch of its new Chevrolet Malibu by starting with the green-friendly Eco version, which pleased its government shareholders, but which got lousy reviews. And it’s selling only about 10,000 electric-powered Chevy Volts a year, a puny contribution toward Obama’s goal of 1 million electric vehicles on the road by 2015.

 

“GM is going from bad to worse,” reads the headline on Automotive News Editor in Chief Keith Crain’s analysis. That’s certainly true of its stock price.

 

The government still owns 500 million shares of GM, 26 percent of the total. It needs to sell them for $53 a share to recover its $49.5 billion bailout. But the stock price is around $20 a share, and the Treasury now estimates that the government will lose more than $25 billion if and when it sells.

 

That’s in addition to the revenue lost when the Obama administration permitted GM to continue to deduct previous losses from current profits, even though such deductions are ordinarily wiped out in bankruptcy proceedings.

 

It’s hard to avoid the conclusion that GM is bleeding money because of decisions made by a management eager to please its political masters — and by the terms of the bankruptcy arranged by Obama car czars Ron Bloom and Steven Rattner.

 

Rattner himself admitted late last year, in a speech to the Detroit Economic Club: “We should have asked the UAW (the United Auto Workers union) to do a bit more. We did not ask any UAW member to take a cut in their pay.” Non-union employees of GM spinoff Delphi lost their pensions. UAW members didn’t.

 

The UAW got their political payoff. And GM, according to Forbes writer Louis Woodhill, is headed to bankruptcy again.

 

Is this really what Obama wants to do for all manufacturing across America? Let’s hope not.

 

From: 


Thanks, Obama! Food stamp Recipients Hit All Time High; More Americans Enter Poverty

September 6, 2012

Following a brief period in which it seemed that US food stamp recipients may have peaked, with those living in poverty maxing out at 46.514 million in December 2011, and then declining modestly for the next few months, this past June saw a new surge in those Americans living in poverty and thus eligible for foodstamps, with 173,600 new entrants into the system, bringing the total to a new all time high of 46.670 million and once again rising fast.

Furthermore, with subsequent emergency events affecting the heartland due to the drought, the administration has made sure even more Americans will be eligible going forward. As a result expect the July and August numbers to promptly surpass 47 million on their way to the psychological resistance level of 50 million.

Indicatively, the 173,600 increase in Foodstamps recipients in June was three times greater than Americans finding jobs (64,000, most of which part-time) according to the BLS.

Finally, a new record was also breached for American households on food stamps, which now hit 22.4 million, an increase of 106,298 households. The average benefit per household decline once more, this time to $276.5. Not an all time low, but just above it.

From:  http://www.zerohedge.com/news/june-foodstamp-recipients-hit-all-time-high-three-times-many-americans-enter-poverty-find-jobs

 


Thanks, Obama! Most New Jobs In “Economic Recovery” Are Low-Paying

September 6, 2012

Whereas 6 in 10 jobs lost during the Great Recession paid mid-level wages, the majority of jobs created in the recovery — positions such as store clerks, laborers and home healthcare aides — pay much less, according to a new study.

 

The findings highlight concerns about a shrinking middle class and pose another obstacle to getting the economy back on track, said Annette Bernhardt, policy co-director at the National Employment Law Project, which conducted the study.

 

“The recovery continues to be skewed toward low-wage jobs, reinforcing the rise in inequality and America’s deficit of good jobs,” she said. “While there’s understandably a lot of focus on getting employment back to pre-recession levels, the quality of jobs is rapidly emerging as a second front in the struggling recovery.”

 

Lower-paying jobs, with median hourly wages from $7.69 to $13.83, accounted for just 21% of the job losses during the recession. But they’ve made up about 58% of the job growth from the end of the recession in late 2009 through early 2012.

 

Those jobs have been concentrated in three industries: food services, retail and employment services, such as office clerks and customer service representatives, the study found.

 

In contrast, mid-wage occupations with median hourly wages from $13.84 to $21.13 — jobs such as construction workers, real estate brokers and data entry clerks — have accounted for just 22% of the new jobs in the recovery after making up 60% of the job losses in the recession.

 

Higher-wage occupations, with median hourly pay above $21.13, accounted for about 19% of the recession job losses and have made up about 20% of the jobs gained in the recovery, the study said.

 

The study covered jobs created from the first quarter of 2010 through the first quarter of 2012.

 

The recession and its aftermath have exacerbated a three-decade trend of growing wage inequality fueled by a shrinking number of mid-wage jobs, the study said.

 

Since the first quarter of 2001, employment in mid-wage jobs has decreased 7.3%. Meanwhile, lower-wage jobs have grown 8.7% and higher-wage jobs have increased 6.6%.

 

“The economy has fewer good jobs now than it did at the start of the 21st century,” said Bernhardt, the study’s coauthor.

 

From:  http://www.latimes.com/business/la-fi-low-paying-jobs-20120901,0,6882432.story