" GDP Report: An Anti-Middle Class Recovery "

[WhiskeyGirl]

NEW YORK (TheStreet) -- The Commerce Department reported gross domestic product rose a modest 3.2% in the first quarter, further confirming the end of the recession and that the recovery is only moderate and disappointing. Half of the growth came from inventory adjustments, and the prospects for future growth and wage gains are only modest.

Separately, the March employment cost index was up 1.7% year over year. This broad measure of worker pay and benefits indicates that the typical American is not keeping up with rising prices, health care costs and taxes.

Unemployment will hang above 8% or 9% well into 2011, and most workers will continue to face a tough job market and declining living standards.

This recovery is decidedly anti-middle class. Wages will not keep up with rising prices, health care premiums and taxes. A good deal of the gains, so far, are going to Wall Street and the medical and intellectual property industries.

The trade deficit is nearly entirely oil and trade with China. The president's programs to increase domestic conservation and drilling are halfway measures and won't yield large results for many years. Talk on trade issues has failed with China -- it will not meaningfully move on its currency, as the small revaluations being suggested won't dent the subsidy to Chinese products at the Wal-Mart (WMT) provided by a 40% to 50% undervalued currency.

So far, President Obama's policies have not solved the problem of middle class decline because they fail to deal with systemic issues in the banks, trade, health care and competition in intellectual property industries.

http://www.thestreet.com/story/10737975/1/gdp-report-an-anti-middle-class-recovery.html?cm_ven=GOOGLEN

The Obama administration seems to be good for Wall Street.

Bummer for Main Street.

[WhiskeyGirl]

Obama administration is impoverishing the U.S. middle class

On Friday, the BEA reported its preliminary report of U.S. GDP during the first quarter of 2010. One thing that struck me, when looking at the statistics, is that the U.S. trade deficits are coming back strong. The following is the quarterly trade deficit (reported on an annualized basis):

(snip chart)

University of Maryland economist Peter Morici's take on the statisitics (This Recovery is Anti-Middle Class) is that the recovery from the recession is quite weak and that it won't benefit the U.S. middle class. He wrote:

The Commerce Department reported GDP grew a modest 3.2 percent in the first quarter, further confirming the end of the recession and that the recovery is only moderate and disappointing. Half of the growth came from inventory adjustments, and the prospects for future growth and wage gains are only modest....

Unemployment will hang above 8 or 9 percent well into 2011, and most workers will continue to face a tough job market and declining living standards.

Wages will not keep up with rising prices, health care premiums and taxes. A good deal of the gains, so far, are going to Wall Street and the medical and intellectual property industries.

...

The growing trade deficit is caused by the Obama administration's inexplicable decision to allow China to continue its currency manipulations, letting China keep stealing U.S. manufacturing and R&D jobs. Thus, if Morici's predictions about the recovery are correct, the Obama administration's policies are impoverishing the American middle class.

more here - http://www.idealtaxes.com/post3121.shtml

[WhiskeyGirl]

Morici: This Recovery is Anti-Middle Class

...

This recovery is decidedly anti middle class.

Wages will not keep up with rising prices, health care premiums and taxes. A good deal of the gains, so far, are going to Wall Street and the medical and intellectual property industries.

...

New health care laws shift costs for services to the poor and low income workers to state and local governments through broader federal mandates, and onto insurance and drug companies. Resulting tax and premium increases fall heaviest on the middle class.

Hollywood and cable companies are boosting ticket prices and subscription fees, abusing ordinary Americans. Political contributions insulate their market power.

...

Looking ahead, data are not encouraging. After such a long and damaging recession, we should expect several quarters of 5 percent growth but poor and mistargeted economic policies will force Americans to settle for less.

more here - http://www.cnbc.com/id/36870972

Does the Age of Obama mean a return to complete global poverty?

[WhiskeyGirl]

The latest GDP numbers are out. They show a 3.2% growth in Q1. Examine the numbers in detail and you have to reach the conclusion that this "recovery" is a very manipulated and distorted recovery.

A sizable part of the gains came from strength in economic performance by the Wall Street elite and the health industry, which of course is where the government has been playing and funneling money to its favored groups.

Wow, can it be TRUE?

Morici is spot on when he writes, "This recovery is decidedly anti middle class...Backing out the inventory adjustments, real GDP increased about $162 billion since the second quarter of 2009, when the economy bottomed out. Wall Street for 2009 paid out bonuses of nearly $150 billion on profits twice that amount."

Is it any wonder that the other economic news out today is that the top 1% of Americans increased their share of all national wealth to 35.6% in 2009, up from 34.6% in 2007?

Does Obama work for Wall Street?  Goldman?

more here - http://www.economicpolicyjournal.com/2010/04/manipulated-anti-middle-class-recovery.html

from the comments -

Jason said...

    Just spreading the wealth around. That's all.
    April 30, 2010 2:44 PM

[WhiskeyGirl]

Romer Says U.S. Can Emerge From Recession Into ‘Better Normal’
April 18, 2010, 12:02 AM EDT

By Joshua Zumbrun

April 18 (Bloomberg) -- Christina Romer, the White House’s chief economist, said the U.S. economy can emerge from the worst recession since the 1930s into a “better normal” era of higher economic growth.

“I find it distressing that some observers talk about unemployment remaining high for an extended period with resignation, rather than with a sense of urgency to find ways to address the problem,” Romer said.

more here - http://www.businessweek.com/news/2010-04-18/romer-says-u-s-can-emerge-from-recession-into-better-normal-.html

Me thinks the Obama administration are leading the way in speech about 'high unemployment' for years to come...

And, leading the way to higher illegal immigration...