Democrats Bankrupt of Ideas, Rich in Economic Failure

June 14, 2012

Obama and Democrats Lay Out Their New Jobs Plan—Regurgitating Old Ideas and Blaming Bush

President Obama will give an economic speech today in Cleveland that will make it clear that the Democrats’ record of economic failure is so dreadful that they are completely bankrupt of ideas for fixing America’s economy:

Recent focus groups conducted by the Democrat-aligned organization Democracy Corps highlight the pain felt by working families trying to survive in the wreckage of the Democrats’ failed economic policy

The latest data shows that America’s economy appears to be, as one voter in the focus group put it, doing nothing more than “treading water.”

OBAMA SPEECH TO ASK FOR FOUR MORE YEARS TO BLAME BUSH:“Instead, he will make the case that he needs four more years to undo the damage left by George W. Bush, his Republican predecessor in the White House, and argue that a President Romney would bring back the weak financial regulation and budget-busting tax cuts of the Bush years.” (Andy Sullivan, “Obama’s Gamble: Asking For More Time to Fix Economy,” Reuters, 6/13/12)

OBAMA TEAM “OUT OF FRESH OPTIONS:” “Mr. Obama’s address in Cleveland, described by his aides as a ‘framing’ speech, isn’t expected to include any major new proposals. While some of his political advisers had pushed for that, his economic team made clear they don’t see many fresh options…” (Carol Lee and Laura Meckler, “Obama To Revisit Economic Debate,” The Wall Street Journal, 6/11/12)

OBAMA ADVISORS EXPECTING NO ECONOMIC IMPROVEMENT BEFORE THE ELECTION: “For the White House, it was just the latest entry in the when-it-rains-it-pours ledger. This has been one of the worst stretches of the Obama presidency. In Washington, there is a creeping sense that the bottom has fallen out and that there may be no second term. Privately, senior Obama advisers say they are no longer expecting much economic improvement before the election.” (Dana Milbank, Op-Ed, “Pileup At The White House,” The Washington Post, 6/11/12)

SAME FAILED IDEAS, DIFFERENT DAY: “The ‘president is continuing to work with his team on potential new ideas’ to jumpstart the economy, White House spokesman Jay Carney said Monday when pressed about the sagging rate of job growth. The reality is the ideas coming from Obama are likely be the ones he has already proposed. There is no money and no political appetite for bolder ideas.” (Andrew Taylor, “Few Options Left For Obama On Economy Before Election Day As Gridlock Takes Hold,” The Associated Press , 6/05/12)

OBAMA STILL PUSHING PROPOSALS FROM LAST YEAR: “Obama is not expected to unveil any new policy proposals of his own; the president is still trying to persuade Congress to adopt elements of a jobs bill he proposed last year.” (David Jackson, “Obama Plans Major Economic Speech Thursday,” USA Today, 6/13/12)

MEDICAL EXPENSES REMAIN HIGH DESPITE OBAMACARE’S PASSAGE: “I had to go in for hernia surgery on Friday. I’m unemployed, you know it’s expensive, they don’t care. Nobody cares.” (“Shifting the Economic Narrative,”Democracy Corps, 6/11/12)

MAIN STREET FAMILIES TURNING TO DRASTIC MEASURES TO MAKE ENDS MEET, LIKE MOVING BACK IN WITH THE EX: “I live with my first husband, which is not the greatest thing in the world, but anyways, I do have two children, 31 and 26. The oldest has three kids who lives with us..And I’m hoping to get this job so I can get out of the house.” (“Shifting the Economic Narrative,” Democracy Corps, 6/11/12)

AMERICANS SEE LITTLE HOPE THAT THE ECONOMY WILL IMPROVE ANY TIME SOON: “The main thing is its uncertainty. It doesn’t seem like there’s growth around the corner. We read about, or I read about growth and positive numbers, lack of negative outcomes every month in the different reports that are published but it seems like that is just treading water.”(“Shifting the Economic Narrative,” Democracy Corps, 6/11/12)

DEMOCRATS’ POLICIES NOT YIELDING TANGLIBLE RESULTS: “You need to see it in the grocery stores. You need to see it at the gas stations. You need, the consumer needs to see the result and there’s no result of that yet.”(“Shifting the Economic Narrative,” Democracy Corps, 6/11/12)

The latest data shows that America’s economy appears to be, as one voter in the focus group put it, doing nothing more than “treading water:”

RETAIL SALES DECLINE REFLECTING LOWER CONSUMER CONFIDENCE:“U.S. retail sales slipped in May for the second consecutive month, reflecting lower gasoline prices and cautious spending elsewhere…Retail and food service sales decreased 0.2% last month to a seasonally adjusted $404.60 billion… .” (Jeffrey Sparshott and Tom Barkley, “Retail Sales Decline,” Wall Street Journal, 6/13/12)

ECONOMISTS WORRY CONSUMER SPENDING WILL WORSEN IF JOBS DO NOT IMPROVE: “Still, economists worry that consumer spending may further weaken if hiring and pay doesn’t pick up. Workers’ average hourly earnings have risen just 1.7 percent in the 12 months ended in May. That’s well below the pace of inflation during this period.” (Matt Crutsinger, “U.S. Retail Sales: Back-To-Back Declines For First Time In 2 Years,” Huffington Post, 6/13/12)

WAGES HAVE BARELY IMPROVED SINCE 2008: “Adjusted for inflation, the average hourly wage has gone up just 42 cents over the past four years to $23.41, according to Labor Department figures. High unemployment explains some of this, but salaries have stayed disturbingly flat, economists say. ‘It’s unprecedented how modest the wage gains have been over this recovery,’ said Sherry Cooper, chief economist and executive vice president at the BMO Financial Group. ‘It’s painful for consumers and detrimental for labor.’ (Josh Boak, “Election Angst: Wages Have Barely Budged Since ’08,” Politico, 6/12/12)

TEEN JOBLESS RATE SOARS WITH 7 IN 10 OUT OF SUMMER WORK: “Fewer than three in 10 American teenagers now hold jobs such as running cash registers, mowing lawns or busing restaurant tables from June to August. The decline has been particularly sharp since 2000, with employment for 16- to 19-year-olds falling to the lowest level since World War II. And teen employment may never return to pre-recession levels, suggests a projection by the US Bureau of Labor Statistics.” (Hope Yen, “More than 7 in 10 US Teens Jobless in Summer,” Associated Press, 6/13/12)

24 MILLION AMERICANS REMAIN OUT OF WORK: “24 million workers are unemployed, underemployed or have given up looking for work, pushing the jobless rate to 15 percent.” (Donald Lambro, “‘Doing Fine’ in Obama’s Economy,”Washington Times, 6/12/12)

US WEALTH FELL 40% FROM 2007 TO 2010: “The recent recession wiped out nearly two decades of Americans’ wealth, according to government data released Monday, with middle-class families bearing the brunt of the decline. The Federal Reserve said the median net worth of families plunged by 39 percent in just three years, from $126,400 in 2007 to $77,300 in 2010. That puts Americans roughly on par with where they were in 1992.” (Ylan Mui, “Americans saw wealth plummet 40 percent from 2007 to 2010, Federal Reserve says,”Washington Post, 6/11/12)

CONTINUING ECONOMIC UNCERTAINTY LOWERS RETIREMENT EXPECTATIONS: “…Despite optimism about the stock market, most investors are still so worried about uncertainty and volatility that they are just lowering their retirement expectations… Only one out of 10 investors is making any adjustments to their portfolio, according to a Barometer survey released today by BlackRock.” (Christine Dougas, “Investor Uncertainty Leads To Lower Retirement Expectations,” USA Today, 6/13/12)