Personal Income Drops 3.2% In Obama's First 15 Months
Tuesday, April 13, 2010 at 12:15AM We all know what a bang up job he's doing, but the Washington Times offers more proof:
Real personal income for Americans - excluding government payouts such as Social Security - has fallen by 3.2 percent since President Obama took office in January 2009, according to the Commerce Department's Bureau of Economic Analysis.
For comparison, real personal income during the first 15 months in office for President George W. Bush, who inherited a milder recession from his predecessor, dropped 0.4 percent. Income excluding government payouts increased 12.7 percent during Mr. Bush's eight years in office.
"This is hardly surprising," said Douglas Holtz-Eakin, an economist and former director of the nonpartisan Congressional Budget Office. "Under President Obama, only federal spending is going up; jobs, business startups, and incomes are all down. It is proof that the government can't spend its way to prosperity."
According to the bureau's statistics, per capita income dropped during 2009 in 47 states, with only modest gains in the other states, West Virginia, Maine and Maryland. But most of those increases were attributed to rising income from the government, such as Medicare and unemployment benefits.
Two of the most populous states in the country reported dramatic declines: Per capita income in California dropped 3.5 percent to $42,325; in New York, the drop was 3.8 percent to $46,957.
"The evidence from New York and California reinforces a basic lesson: Where government gets too large, prosperity suffers. Let's hope that the Congress learns this lesson before it is too late for the country as a whole," said Mr. Holtz-Eakin, who also served as chief economic policy adviser to Sen. John McCain's 2008 presidential campaign.
On the campaign trail, Mr. Obama often derided Mr. Bush for what he said were dramatically falling incomes for workers.
"American families, since George Bush has been in office, have seen average family incomes go down $2,000," Mr. Obama said in a September 2008 speech on the economy in Green Bay, Wis.
The bureau, which doesn't compile statistics on "family" income, reported that per capita income rose during Mr. Bush's two terms, from $29,159 to $32,632 (using 2005 dollar values as a base). During Mr. Obama's 15 months in office, per capita income has dropped nearly 1 percent to $32,343.
Economists agree that Mr. Obama inherited a severe recession, although some dispute that it is the "worst since the Great Depression," as Mr. Obama often asserts. Still, the dropping numbers show that the $862 billion stimulus package has not turned the tide on dropping incomes.
Reader Comments (5)
Obama has people and business so uncertain of their future, they are sitting on their hands. I'm afraid this will continue to happen as long as he is running the show like he is. Not good.
Agreed Nick. It's a vicious cycle that all liberals perpetrate. These people are to economic duress as a nose first plane crash is to death. Guaranteed.
As Rush said yesterday,
"Bush's recession was
better than Obama's recovery."
Obama had a great plan. Knock us all down to make more people dependent on government. Take over big chucks of the private sector. Demonize capitalism and profits. Check, check, and check. Did he forget taxes are paid on corporate profits and individual's income, exacerbating public indebteness by reducing tax receipts while dramatically increasing government spending? Or was the plan to induce default on debt or economic collapse so he could be dictator for life a la Castro, Chavez, etc.?
Very good question Herb. I think many people are starting to believe the latter. It's hard to fathom anyone is stupid enough to make the moves they have made in this economy - even liberals. That being said, the Frenchman thinks Obama is crazy, so anything is possible.