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Obama ‘Recovery’ Making Income Gap Worse

From the Washington Post:

In many states, the recovery is making the income gap worse

By Niraj Chokshi | November 18, 2013

The income gap in America has been widening for decades and the modest three-year recovery did little to change that, according to new Census data.

Not to pick nits, but what recovery? Even by jiggering the figures and creating new measurements for the jobless rate and the GDP and ignoring inflation, economic growth has been stuck at around 2%. Which is miserable for an average year, and no where near what it should be during an economic ‘recovery.’

The new data suggest that despite modest recoveries in many states, the middle class has been shrinking while households have been added in the lowest and highest income brackets.

Oddly enough, this is what has happened in every country in the world throughout history when they have tried to redistribute income. In fact, the main goal of classical Marxist styled Communism is to destroy the middle class.

The state-by-state data compare incomes from a pair of three-year periods: 2007 through 2009, a span that included the Great Recession, and 2010 through 2012, a period that included the ongoing and modest recovery.

And never mind that the recession didn’t begin (by every traditional measure) until the last quarter of 2008.

For years, the wealthiest 1 percent have amassed income more quickly than the rest. From 1979 through 2007, for example, the top 1 percent of households saw income grow by 275 percent, according to a nonpartisan Congressional Budget Office study. Compare that to the bottom fifth of households, which saw income gains of only 18 percent over that time.

So you see where all of this evilness began? With President Reagan.

Recent Nobel Prize winner for economics Robert Shiller, who is known for creating a closely tracked home-price index, last month called income inequality “the most important problem that we are facing now today.” And just last week, President Obama’s nominee to lead the Federal Reserve, Janet Yellen, called income inequality “an extremely difficult and to my mind very worrisome problem.”

Of course, they are saying this to push for more income redistribution. But whatever happened to global warming being the biggest problem we face. (Alhough, come to think of it, global warming is also really just a way to redistribute income.)

Though rare, the recovery was strong and reduced inequality in some states, such as North Dakota, where an oil boom has provided a sustained economic boost. There, the number of households in the lowest half of income brackets shrank, while more joined the highest income brackets, a trend that suggests broad upward mobility.

Funny what a little capitalism can do.

But in most states—and nationally—the data show the income gap worsening. In Michigan, for example, more than 65,000 households fell out of the middle-income brackets. That loss was counterbalanced by the addition of some 38,000 households, but only at the lowest and highest income levels.

But Michigan has been a Democrat paradise, with Detroit its foremost flower. Where did they go wrong?

That was true in many states: The number of middle-income households shrank while the number of low- and upper-income households grew. In many states, more upper-income households were added than lower-income ones—a positive economic sign not entirely unexpected during a recovery from such a severe downturn—but the middle class still shrank.

But even despite the recovery, that wasn’t always the case. In California, where the total number of households grew between the two periods, more than 70,000 dropped out of two middle-income brackets. That loss was more than offset, but only by growth at the extremes. And more households joined the bottom three income levels than had joined the top three, according to the Census data.

And California has been another Democrat paradise. Plus they have the benefit of all of those illegal aliens, whom, we are told, are great for the economy.

But none of this makes any sense. If run amuck socialism can’t fix income inequality, what can? (Hint: its opposite.)

This article was posted by Steve on Monday, November 18th, 2013. Comments are currently closed.

One Response to “Obama ‘Recovery’ Making Income Gap Worse”

  1. untrainable says:

    “Recovery”? Miriam Webster is having a stroke trying to keep up with the redefinition of our language word by word. You’re in the hospital in “recovery”, and after 5 years you’re still there and you’re no better. In fact you may be worse than when you got there. From any objective perspective YOU ARE NOT RECOVERING!

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