Obamanomics – Another Failure of Liberal Economics

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 Despite Democrat claims to the contrary, labor force participation by blacks is the lowest ever recorded for black men and the lowest ever for all blacks since – you guessed it – Jimmy Carter. Despite Democrat claims to the contrary, the number of people not participating in the labor force has increased by 10 million. (In other words, about half the people who could work – aren’t.)

Obamanomics_small Obamanomics – Another Failure of Liberal Economics

So, what’s the real problem here? Obama has told us that the economy has rebounded and has produced jobs each and every month for the past few years. Why aren’t things “better?”

Obamanomics – “Spread the wealth around”

In this YouTube video, Obama explains to “Joe the Plumber” why his idea of “spreading the wealth around” is good for Americans who want to work for their piece of the American dream:

Despite that statement being an outright lie, the economic plan put forth by Obama, starting with that interview and later during his presidency, has been to take money from “the rich” and give it to “the poor.”

(Never mind the fact that poverty under Obama is higher now than it was before the liberals’ war on poverty actually began in the 1965, even though the cost of funding these social safety nets has increased automatically each and every year.)

The current minimum wage is $7.25/hour, which equates to $15,080 a year before taxes. Obama, in his infinite wisdom, has proposed raising the wage to $9.00/hour. That would equate to $18,720 a year before taxes because working Americans should not have to live in poverty. However, that would require jobs; and the size of the workforce has decreased dramatically under Obama.

So, the real question is why are Democrats talking about the minimum wage when there are no jobs? (Because people are leaving the workforce, which is easily verifiable.)


As shown here, it seems that the best job to have is to be on welfare. Welfare pays more than minimum wage in 35 states. Welfare pays more than $15/hour in 13 states. Welfare recipients in nine states make more than the average salary of a first year teacher. Welfare recipients in the five most generous states make more than the entry level salary of a computer programmer.  (Are you wondering which Democrat states these are? They will pay you more than $43,000 to do nothing.)

Do realize that since you would be on welfare, you would also get housing assistance, healthcare, child care/child support, education/training, career development assistance, and energy assistance, just to name a few types of assistance that would be available to you on the federal level alone.

Even if you did work just so you weren’t bored, why should you strive to be successful? Under the Obama economic plan, a single woman with two young children making $29,000 and receiving welfare is actually better off than the woman who makes $69,000.

How about this video clip of the surfer who could work, chooses not to, and receives food stamps so he can surf all day while driving his SUV?

Is this not fraud? The number of examples of fraud within the various entitlement and federal assistance programs alone would fill volumes. The Obama Administration even declared the amount of fraud within Medicare and Medicaid to be a growing criminal enterprise needing even more oversight.

So, by their own admission, Obama has shown that providing “social safety nets” to “the poor” is routinely taken advantage of by a growing criminal enterprise.

Reality Check

Yet, Democrats persist with the notion that the government can save the economy.

Democrats claim that government stimulus creates jobs, welfare creates jobs, unemployment benefits creates jobs, food stamps creates jobs, allowing illegal immigrants creates jobs, and Obamacare creates jobs.

If we have all of these job-creating initiatives in place, then –

  • Why is the unemployment even high? Why isn’t it 0%?
  • Why is nearly 42% of the workforce not involved in the workforce?
  • What happens when the number of people not working is higher than the number of people who actually work? Based on the current numbers, we are about 8.5% points from that being the reality.
  • Is the government going to be able to continue providing benefits to the tune of $43,000 or more for you not to work? Anyone who knows basic math knows the answer. It can’t!

That is the problem with liberal economic theory – taking money from those who work (i.e. “the rich”) to give to those who don’t work cannot be sustained. As I wrote in my previous article about the inherent contradictions of liberalism, Obamanomics is doomed to failure by its own inherent contradictions.

Democrats are now lying to people by saying that being on welfare, unemployment, food stamps, or public assistance is being productive. Not only is that dishonest; it is mathematically impossible to prove.

You cannot produce something when you do nothing. Economies thrive on productivity – not inactivity. This is the economy they have created since 2009.

This is the economy they must be held accountable for in the mid-term elections.