The Fox News star blamed increasing spending for entitlement programs and higher taxes for the lower quality of life.
"In order for more than 300 million Americans to have a chance at prosperity you need a vibrant economy," O'Reilly said. "At this point, the U.S. does not have one. That is now on President Obama."
O'Reilly also criticized Obama for creating an economic justice system that caters toward those who aren't financially stable.
"The president also doesn't seem to trust the capitalistic system," O'Reilly said. "Therefore, he has instituted new regulations and those might be inhibiting business expansion."
O'Reilly said 54 percent of Americans earn less than $30,000 a year and most of the jobs the Obama administration created were part time.
"The competition for jobs is driving down wages because there are not enough jobs" O'Reilly said. "Only business expansion will turn that dire situation around. Why President Obama doesn't understand that, I simply don't know."