Sunday, June 12, 2011

Obama's Squandered Inheritance

President Obama uses every opportunity to blame the economy he "inherited" from the Bush administration for his failure to effectively deal with the serious problems facing our economy today.  The fact is that the economy  has deteriorated by a number of key measures since Obama took office is a direct result of his administration's poor policy decisions.

The gas price at the time of Obama's inauguration was $1.87 per gallon. Today, the average price nationally is $3.75 per gallon, a completely predictable result given his restrictions on exploration and drilling.

Unemployment stood at 7.2% when Obama took office.  It stands at 9.1% today.  The uncertainty created by the implications of Obamacare and the lack of an energy policy focused on lowering costs and his constant promises to raise taxes have caused a prudent business community to restrict hiring.

Housing prices have eroded an additional 20% nationwide since Obama took office representing an enormous loss of wealth among consumers helping to explain the persistently weak consumer sentiment.  The new financial regulations incorporated in the Dodd-Frank legislation fail to address the sources of the housing crisis...the government sponsored enterprises (GSE's) known as Fannie Mae and Freddie Mac.  The new regulations only serve to increase costs of doing business for financial institutions, costs that will be passed on to us consumers.

Obama "inherited" a national debt of  just over $10 trillion which has soared to over $14 trillion thanks to the cost of his failed "stimulus" program, and the failure of his administration to address the serious fiscal problems facing government.  This enormous debt overhanging our economy is contributing to the economic malaise reflected in the grim statistics associated with the Obama economy.

The dollar has lost 7% of its value in the world currency markets in the past year as the rest of the world takes notice of the precarious fiscal situation facing our government.

Obama is being disingenuous when he blames his inheritance from the Bush administration for the failure of his administration to succeed in addressing today's economic problems.  Even with all of the problems created by the financial crisis in 2007 and 2008, the economy was, by many measures, stronger when Obama took office than it is today.  Obama's policies have made a bad situation worse.  He has squandered his inheritance.  


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