The labor market seen since the POR (Pelosi-Obama-Reid) economy began wreaking its awful havoc in the late spring of 2008 has had awful consequences for the American people, best seen in the two graphs which follow. The first (in 2nd quarter 2012 dollars) shows how the economy has still failed to meet Obama booster Warren Buffet’s definition of when the recession will truly be over, namely when “real per capita GDP gets back to where it was before”:
Real output per person is still $865 below where it was 4-1/2 years ago. At this figure’s rate of growth during the first half of 2012, we won’t be back to where we were in late 2007 until early 2014. Mr. Buffet has a long wait ahead of him.
The second graph compares what President Obama constantly claims “has never worked,” namely the tax-cutting, regulation-minimizing policies of Ronald Reagan, to the Keynesian, stimulus-driven regime Obama still believes, after 42 miserable months in office, has worked:
The difference could hardly be starker. What Obama says “has never worked” brought real per capita GDP back to its previous peak in four quarters and outperformed the Obama economy in post-recession per capita income growth by over ten percentage points.
Let’s split the difference, and assume that if Obama and his administration had done what they should have done instead of what they have done, real per capita GDP would have grown by five more points in the past three years than it actually has. If that were the case, the economy would currently be producing almost $2,400 more in goods and services (5 percent times the $47,589 trough seen in the first graph) for every man, woman, and child in America, or about $9,500 for a family of four. A majority of that would be making its way into the pockets of American workers and their families.
Instead, we have falling wages, rising poverty, dangerous levels of dependency on the government, and a previously unthinkable chance of turning into the 21st century’s Argentina. Only a change in who is in charge, accompanied by a wholesale housecleaning and permanent pruning of the federal leviathan, can alter this unsustainable situation.