“Proud” of Obama’s Economy? Hardly.

Bad Economic Reports and New Polls Show the Shameful Truth About the Economic Record Democrats Are “Proud” Of

• DNC Chair Debbie Wasserman Schultz recently claimed that she and her party are “proud” of President Obama’s record on the economy.
• Wasserman Schultz’s comments were outlandish from the start, but this week’s economic news only further confirms the depressing extent to which Democrats are out-of-touch with reality. Major analysts are now predicting that a second recession is a real possibility.
• Meanwhile, the president has yet to release a plan for job creation that doesn’t involve yet more spending America can’t afford. This week the president announced that he will give a “major speech” detailing his new jobs plan—in a month. Is this honestly a record Democrats are proud of?

BACKGROUND 

DNC Chair Debbie Wasserman Schultz recently claimed that she and her party are “proud” of President Obama’s record on the economy: 

MSNBC’S ANDREA MITCHELL: “…[W]hat he’s running against is an unemployment rate hovering around nine percent, and widespread concerns about a second recession. So the President’s record is the one that is going to have to be defended.”

DNC CHAIR REP. DEBBIE WASSERMAN SCHULTZ: “Well, I’m proud of the President’s record as are Democrats and middle-class Americans across the country.” (Remarks from Debbie Wasserman-Schultz, MSNBC’s “Andrea Mitchell Reports”, 8/13/2011)

Wasserman Schultz’s comments were outlandish from the start, but this week’s economic news only further confirms the depressing extent to which Democrats are out-of-touch with reality. Major analysts are now predicting that a second recession is a real possibility: 

JOBLESS CLAIMS ON THE RISE: “New U.S. claims for unemployment benefits rose more than expected last week… Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 408,000, the Labor Department said.”(Lucia Mutikani, “Jobless Claims Rise 9,000 Last Week,” Reuters, 8/18/2011) 

“INFLATION RESUMES ADVANCE,” SURPASSING FED ESTIMATES: “U.S. headline inflation jumped 0.5% in July, while prices rose 3.6% over 12 months, above the Fed’s informal target of 2.0%.” (Andrew Ackerman and Luca Di Leo, “Inflation Resumes Advance as Jobless Claims Rise,” Dow Jones, 8/18/2011)

NEW WORRIES ABOUT STAGFLATION? “If you look beyond the latest carnage in stocks Thursday, investors are clearly sending a signal that they are worried both about stagnation and inflation. But the emphasis seems to be more on the ‘stag.’”(Paul La Monica, “Stagflation Signs Surface in Bonds, Stocks, Gold,” CNN Money, 8/18/2011)

PHILADELPHIA FED FACTORY INDEX IN “AUGUST FREEFALL,” HITS “LOWEST LEVEL SEEN IN MORE THAN TWO YEARS”: “Factory activity in the Philadelphia region weakened sharply in August to the lowest level seen in more than two years, the Federal Reserve Bank of Philadelphia said Thursday, adding to fears that the economy has ground to a halt. The Philly Fed’s business outlook survey fell to negative 30.7 in August from 3.2 in July. This is the lowest reading since March 2009.” (Greg Robb, “Philly’s Fed Factory Index in August Freefall,” Market Watch, 8/18/2011) 

HOME SALES DROP 3.5%, “HIT 2011 LOW”; 2011 ON PACE TO BE WORST YEAR FOR HOUSING IN 14 YEARS: “The number of people who bought previously occupied homes fell in July for the third time in four months. This year is on pace to be the worst in 14 years for home sales, as more Americans worry that the economy could slip back into another recession.

“Home sales fell 3.5 percent last month to a seasonally adjusted annual rate of 4.67 million homes, the National Association of Realtors said Thursday. That’s far below the 6 million that economists say must be sold to sustain a healthy housing market.” (Derek Kravitz, “Home Sales Dropped 3.5 Pct. in July, Hit 2011 Low,” Associated Press, 8/18/2011) 

TRADE DEFICIT WIDENS, CHINA “GAIN[S] GROUND ON AMERICAN INDUSTRY”:“A decline in exports caused the monthly U.S. trade deficit to widen in June by 4.4 percent to $53.1 billion and China gained further ground on American industry, according to a Commerce Department report Thursday. … The goods deficit with China increased to $26.7 billion in June, a cause for concern for the Alliance for American Manufacturing as China continues to gain ground on American industry.” (Josh Boak, “Trade Deficit Widens as China Gains,” Politico, 8/11/2011)

MORGAN STANLEY: U.S. “DANGEROUSLY CLOSE TO RECESSION.” (Lucia Mutikani, “WRAPUP 4- U.S. Regional Factory Activity Hits 2 ½ Year Low,” Reuters, 8/18/2011)

Meanwhile, the president has yet to release a plan for job creation that doesn’t involve yet more spending America can’t afford. This week the president announced that he will give a “major speech” detailing his new jobs plan—in a month. Is this honestly a record Democrats are proud of?

WHITE HOUSE TO SHUFFLE THE BUREAUCRACY AND REBRAND WITH NEW “DEPARTMENT OF JOBS”? REALLY?: “The administration may also merge the Department of Commerce, the Office of the United States Trade Representative and some economic divisions at the State Department into a new agency, administration officials said. Possible names include the Department of Jobs or the Department of Competitiveness.” (Binyamin Applebaum and Helene Cooper, “White House Debates Fight on Economy,” The New York Times, 8/14/2011) 

MEANWHILE, OBAMA ANNOUNCES A “NEW JOBS PLAN” SPEECH, TO BE GIVEN…IN A MONTH. (Ben Feller, “Obama to Lay Out New Jobs Plan in Sept. Sepeech,”Associated Press, 8/17/2011) 

NEW PLAN FOR SEPTEMBER IS “A COMPILATION OF OLD PROPOSALS”: “The White House on Wednesday said President Barack Obama would unveil fresh ideas to jump-start the economy and cut deficits, but details offered so far appeared to be a compilation of old proposals.” (Laura MacInnis, “Obama to Unveil Economic Plan in September Speech,” Reuters, 8/17/2011) 

OBAMA TO PROPOSE “A NEW ROUND OF STIMULUS SPENDING.” (Zachary A. Goldfarb and Peter Wallsten, “Obama to Issue New Proposals on Job Creation, Debt Reduction,”The Washington Post, 8/17/2011)

NO WONDER EVEN REP. MAXINE WATERS AT CONGRESSIONAL BLACK CAUCUS FORUM SAID “WE DON’T KNOW WHAT THE [OBAMA JOBS] STRATEGY IS.”:“Our people are hurting. The unemployment is unconscionable. We don’t know what the strategy is.” (“Anti-Obama Outrage Erupts at Congressional Black Caucus! ‘When You Unleash Us … We’re Ready,’” Fox Nation, 8/17/2011)

THE VERDICT FROM GALLUP: OBAMA HITS NEW LOW ON ECONOMY AS 26% APPROVE, 71% DISAPPROVE. (Lydia Saad, “New Low of 26% Approve of Obama on the Economy,” Gallup, 8/17/2011)