Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

How Badly Has Obama Alienated the Middle Class? (Here's why Obama may lose in November)
National Journal ^ | 06/14/2012 | Michael Hirsh

Posted on 06/14/2012 2:18:30 PM PDT by SeekAndFind

If President Obama loses in November, the new numbers out showing a calamitous drop in Americans' median net worth--we lost 20 years' worth of prosperity in the Great Recession, folks--will tell a good part of the story why. Bottom line: he lost the middle class. According to the Federal Reserve, a broad group of Americans loosely defined as the middle class saw its net worth plummet from a median of $126,400 in 2007 to $77,300 in 2010.

It's hardly fair to blame Obama for what began in 2007, but there's no reason why he shouldn't also be saddled with some of the blame in underestimating the severity of the crisis. Indeed,  as economist Emmanuel Saez has written, the wealthiest one percent in the country have actually made out better, in percentage terms, during Obama's "recovery" of 2009-2010 than they did from 2002-07 under George W. Bush.

Judging from recent polls--my colleague Ron Brownstein parses one here-- the perception of the president is that he's spending a lot more time coddling the very poor (the uninsured) and the very rich (Wall Street) than he is the middle class. Obama spent a huge portion of his political capital on Obamacare, and almost none on helping underwater middle-class mortgage holders. Nor did he deploy, in a big way, the enormous leverage he had over Wall Street and Main Street both to induce more lending and hiring. Remember, the drop in middle-class net worth came largely because of the financial crisis, during and after which we witnessed Washington handing over hundreds of billions of dollars to sustain the mortgage-bubble-engendering financial firms that cost us all that middle-class income.

It gets worse. According to a 2010 paper by Andrew Haldane, head of the Bank of England's financial-stability department, the financial crisis of 2008-09 produced an output loss equivalent to between $60 trillion and $200 trillion for the world economy. Assuming that a crisis occurs every 20 years -- a very conservative estimate --  the systemic levy needed to recoup these crisis costs would be in excess of $1.5 trillion per year, Haldane says. What that means is that overall, our unrestrained financial sector does not add any net benefit to the economy--its repeated crises cost us far more than Wall Street brings to overall economic growth.

Haldane, pungently, compares the trading excesses of bankers to air pollution from the auto industry. "The banking industry is also a pollutant," he writes. "Systemic risk is a noxious by-product" not unlike the damage to public health from carbon monoxide, lead and so forth. The latter problems were dealt with through taxation and occasional prohibitions or restrictions on poisonous emissions. Why shouldn't we take the same approach to the excesses of over-the-counter derivatives (now back to more than $700 TRILLION in nominal trades), credit default swaps and other ultra-complex products that cause systemic risk?  

"Banking benefits those producing and consuming financial services - the private benefits for bank employees, depositors, borrowers and investors," he writes. "But it also risks endangering innocent bystanders within the wider economy - the social costs to the general public from banking crises."
 
Yet no one -- no one -- in the Obama administration or the U.S. Congress has begun to talk in fundamental terms about the social costs of Wall Street.  

So yes, this festering inequity at the heart of our economy is perhaps the main reason why Barack Obama may lose in November. The president, quixotically, sought to save both the poor (with Obamacare, mainly) and the filthy rich (Wall Street)--but at the expense of the bigger victim, the middle class. And if he gets voted out, they will be the ones to do it.   


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events; Politics/Elections
KEYWORDS: 2012; bhoeconomy; bhofascism; democrateconomy; democrats; economy; elections; liberalfascism; middleclass; nobama2012; obama; obamatruthfile

1 posted on 06/14/2012 2:18:35 PM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind
Bottom line: he lost the middle class.

Lost it? He's been doing everything he can to destroy it.

2 posted on 06/14/2012 2:23:02 PM PDT by Malone LaVeigh
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
How Badly Has Obama Alienated the Middle Class?

Pretty much frigged it up, IMHO.

3 posted on 06/14/2012 2:24:47 PM PDT by upchuck (Need is not an acceptable lifestyle choice; dependent is not a career. ~ Dr. Tim Nerenz)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
It's hardly fair to blame Obama for what began in 2007

SOMEONE CHECK THE HISTORY BOOKS AND TELL ME WHAT HAPPENED ON JANUARY 4, 2007 IN THE US CONGRESS!!

4 posted on 06/14/2012 2:25:52 PM PDT by missnry (The truth will set you free ... and drive liberals Crazy!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
It's hardly fair to blame Obama for what began in 2007

SOMEONE CHECK THE HISTORY BOOKS AND TELL ME WHAT HAPPENED ON JANUARY 4, 2007 IN THE US CONGRESS!!

5 posted on 06/14/2012 2:26:13 PM PDT by missnry (The truth will set you free ... and drive liberals Crazy!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Fraud is fraud, and theft is theft, whether committed by Wall Street traders, too-big-to-fail banks, Washington burueaucrats and politcians, someone committing insurance fraud, someone who does not qualify collecting governtment entitlement checks or tax refunds, a robber knocking over a convenience store, or a burgular stealing from you while you are away from home.

ALL thievery carries a huge social and financial cost. We used to be a relatively moral country. The leftists are chasing God into the closet and we all are suffering for it.


6 posted on 06/14/2012 2:32:51 PM PDT by RatRipper (I'll ride a turtle to work every day before I buy anything from Government Motors.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
He's spending alot of money (and hot air) trying to get that old black magic back, but the people I've spoken to have lost that loving feeling.

He can sing any lets stay together song he wants, people I've talked to are counting the days until he gets out.
7 posted on 06/14/2012 2:34:32 PM PDT by novemberslady
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
It's hardly fair to blame Obama for what began in 2007, but ...

"But", indeed. Being the fair-minded individual that I am, I don't blame the sack of fig pilth for the start of the "recession". What I do blame him for is the exacerbation and for the continuation of it.

8 posted on 06/14/2012 2:47:34 PM PDT by RobinOfKingston (The instinct toward liberalism is located in the part of the brain called the rectal lobe.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

[ So yes, this festering inequity at the heart of our economy is perhaps the main reason why Barack Obama may lose in November. ]

I fail to see the problem... Whats not to like?..
Obama losing in November is a good thing...

Zero is a leak in the Ship of State...
A boil on the ass of Lady Liberty..
But while screwing her he may have given her AIDS... as well..

If so(aids) he will NOT lose in Nov.. America may need another dose..
The WhiteHut has a dose of the crabs sucking the life out of AMericas “package”...


9 posted on 06/14/2012 2:54:16 PM PDT by hosepipe (This propaganda has been edited to include some fully orbed hyperbole...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: missnry

The 110th United States Congress was sworn in on January 4, 2007.

Later, on May 4, 2007, I had heart surgery, suffered a stroke during surgery and contracted MRSA.

I survived the heart surgery and it’s complications, but I am not so sure that we will survive the actions of the 110th United States Congress.


10 posted on 06/14/2012 3:01:00 PM PDT by Gator113 (***YOU GAVE it to Obama. I would have voted for NEWT.~Just livin' life, my way~)
[ Post Reply | Private Reply | To 5 | View Replies]

To: SeekAndFind

One word: Barney Frank...Affordable Housing...sub prime mortgages...Freddie...Fannie...CRA...Sep 18 2008


11 posted on 06/14/2012 3:42:16 PM PDT by y6162
[ Post Reply | Private Reply | To 1 | View Replies]

To: Malone LaVeigh
Lost it? He's been doing everything he can to destroy it.

But he expects votes from the poor, and there will be a whole lot more poor people thanks to Obama's policies in these terrible four years. I wonder how many of the newly poor he is counting on to vote for him.

12 posted on 06/14/2012 3:44:21 PM PDT by Pollster1 (A boy becomes a man when a man is needed - John Steinbeck)
[ Post Reply | Private Reply | To 2 | View Replies]

To: All
This is what one of Ron Barber's ads looked like when he got the Gabby seat this week...

Who's he kidding?

13 posted on 06/14/2012 4:32:04 PM PDT by az_gila
[ Post Reply | Private Reply | To 2 | View Replies]

To: az_gila

Colonel Sanders?


14 posted on 06/14/2012 5:03:52 PM PDT by 6SJ7 (Meh.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: 6SJ7

and we are the chickens


15 posted on 06/14/2012 5:06:48 PM PDT by Rodm
[ Post Reply | Private Reply | To 14 | View Replies]

To: SeekAndFind

BTTT!


16 posted on 06/14/2012 6:55:26 PM PDT by neverdem (Xin loi minh oi)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

“Alienated” does not begin to describe it.


17 posted on 06/15/2012 12:54:22 PM PDT by TexasRepublic (Socialism is the gospel of envy and the religion of thieves)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

I’m sorry — what is this “middle class” you are referring to?


18 posted on 06/15/2012 4:05:40 PM PDT by the invisib1e hand (they have no god but caesar)
[ Post Reply | Private Reply | To 1 | View Replies]

Thanks Vintage Freeper for posting this:

Debt Ceiling Debate in a Nutshell | Creators.com | 07/29/2011 | Chip Bok | Posted on 07/30/2011 12:12:11 PM PDT by Vintage Freeper

19 posted on 06/15/2012 4:06:50 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | View Replies]

In a Mad, Mad, Mad, Mad World: More 0bama lies for the day

20 posted on 06/15/2012 4:06:51 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | View Replies]

To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks SeekAndFind.


21 posted on 06/15/2012 4:06:54 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson