The nation’s eyes are on the Gulf Coast region as the Republican Party
prepares to nominate Mitt Romney and Paul Ryan to oppose the Obama/Biden
ticket — and a hurricane threatens to run over New Orleans in the next
This single-minded attention might cause voters to miss a story reported in Bloomberg that goes a long way to describing why Americans believe the country is headed in the “wrong direction.”
Headlined “U.S. Incomes Fell More in Recovery, Sentier Says,” the story describes the results of analysis of U.S. Census Bureau data by an independent research firm that shows that median household income actually fell 4.8 percent on an inflation-adjusted basis since the recession “ended” in June 2009.
You are reading this right. Workers are actually worse off in Obama’s jobless recovery than they were when the nation’s economy was shrinking.
How can this be?
It is actually the logical result of a “recovery” that has seen the unemployment rate drop largely due to people leaving the workforce, rather than through job creation. As Obama’s economic policies are predicated on the demonization, regulation and higher taxation of those who create jobs, it is surprising to no one that those very businesses have not been expanding the job opportunities at a rate greater than the number of new employees entering the marketplace.
A surplus of labor always means falling wages, just as when jobs are being created at a robust pace, the demand for labor increases, so employers have to pay more to attract workers.
Report author Gordon Green, a former Census Bureau chief, noted in the Bloomberg article, “Almost every group is worse off than it was three years ago, and some groups had very large declines in income.”
As the nation enters the final two months of the presidential election season, Obama is desperately hoping that voters will be distracted by a cascade of negative Romney ads and the pretentious talking heads lecturing knowingly about why the latest accusation matters.
Obama knows if the people focus on the fact that their wages are actually shrinking more during his recovery than they did during the Great Recession, he’s going to be hiring moving vans on Jan. 20, 2013.
Rick Manning (@rmanning957) is the communications director of Americans for Limited Government.