President Obama obviously didn’t take heed of his wife’s “Get Up and Move” campaign before amplifying his policy approach to resolving the economy’s ills. Yesterday in a speech delivered at some inconsequential college in an equally inconsequential town in Illinois, Mr. Obama further defined his middle-out philosophy by providing three or four principals with the focus of expanding the middle class so not to repeat the circumstances that brought about the recession of 2007.
Unfortunately Mr. Obama not only rehashed the campaign rhetoric of 2008 and 2012, but he also failed to address the real reasons for America’s economic decline in late 2007 and the consequential slow recovery.
The primary reason for the recession was the decline in private investment combined with increased consumer spending fueled by debt. Between 2001 and 2012, private sector investment peaked in 2005 and 2006 at 17.2% of gross domestic product according to data from the U.S. Bureau of Economic Analysis. Mr. Obama is correct that government spending as a percent of GDP has fallen under his administration, coming in at 18.3% in 2012.
Rather than offer ways to encourage growth in private sector investment, the sector that not only produces goods and services, but is reponsible for the vast majority of hiring, Mr. Obama decided to go the populist route; blaming Republicans and Wall Street for the nation’s economic problems and in essence stepping up the class warfare argument with his focus on growing the middle class..
Classifications are created by the political and financial elite to divide, manipulate, control, and conquer a society. If you have a hard-on for being placed in a box, then there are only two boxes: producers and non-producers.
In theory we can move between the two, but the reason the economy did not perform for most of us was because rhetoric like yesterday’s speech helped persuade us that it’s okay to spend too much time in the non-producer’s box while frivolously consuming ourselves into unemployment, retarded output, foreclosure, and bankruptcy.