DNC chair: Heck yeah, we’re running on the Obama economy!

posted at 12:01 pm on May 8, 2014 by Ed Morrissey

Just how much midterm juice will Democrats get out of the fabulous 0.1% GDP growth from 2014Q1, or from the 1.9% growth in all of 2013? Plenty, promised Debbie Wasserman Schultz yesterday at a Christian Science Monitor breakfast meeting. The economy will be a big plus for Democrats in November, “no question,” although at the same time the DNC chair dismissed the national mood as “not as relevant”:

“No question the economic issues are an advantage for Democrats,” Wasserman Schultz, head of the Democratic National Committee, said at a May 7 breakfast hosted by the Christian Science Monitor.

The GOP’s attempts to repeal Obamacare, and its support for the budget plan drafted by Rep. Paul Ryan, show “Republicans are focused on making sure a select few are able to do even better,” she said.

But she latter admitted that her constituents are unhappy with President Obama’s economy, even as she spun the admission to highlight Democrats’ spending plans. Voters, she said, “are asking about investing in education, focusing on continuing to create jobs, on making housing more affordable, the bread and butter kitchen table issues that will add to the confidence that Americans have that this economy is continuing to improve.”

“There is certainly room for improvement” in the economy, she acknowledged, as she downplayed a river of bad economic news about income, the middle-class, the widening wealth gapmore use of foreign workers, and the rising number of people who have lost hope for economic change.

We’ll have a few chasers to this absurd statement, but let’s start with my column today in The Fiscal Times. Extending my previous remarks on the latest Brookings Institution study on the decline of entrepreneurialism in the US, I point out that Obamanomics is the worst possible prescription for what ails the stagnant American economy:

What happened? Hathaway and Litan shrug their shoulders after finding that these trends held steady across all states and metropolitan areas. Clearly, “business dynamism and entrepreneurship are experiencing a troubling secular decline,” they conclude, but “our findings stop short of demonstrating why these trends are occurring, and perhaps more importantly, what can be done about it.”

However, the chart itself suggests one answer in particular. The decades involved in this study saw a significant and accelerating expansion of federal regulatory power, which only had one period of significant reversal – the Reagan era. That period shows the only significant return to a higher rate of business births in the last thirty-five years.

The consistency of the decline across regions and states also bolsters this interpretation. Some states and regions have better economic growth rates than others; Texas Governor Rick Perry has recruited major employers from California on that basis, most recently Toyota’s US headquarters and its 5,000 jobs. Despite a friendlier tax and economic climate, though, Texas still has a lower business birth rate than it did thirty years ago, and so does every other state, and every metropolitan area save one (unnamed).  …

As a share of private sector GDP, the federal regulatory burden has increased over the same period as this study. The Phoenix Center recommended at the time that even a small decrease in federal regulatory burden – just 5 percent, roughly decreasing the regulatory budget by less than $3 billion – would generate an additional $75 billion in the economy and add 1.19 million new jobs to the private sector.

Instead, we passed Obamacare.

There’s plenty more, so be sure to read it all. But that’s not the only contraindications of Wasserman Schultz’s declaration, even today. For instance, the housing market recovery suddenly looks a lot less realistic, Yahoo’s Rick Newman reports:

For most of 2013, it looked as if a robust housing recovery was underway. Since housing is a huge part of the overall economy, that bred hope for stronger growth in 2014, along with the hiring and spending that ought to come with it.

But housing has the blahs in 2014, prompting concern that the 2013 spurt may have been a false spring driven by temporary factors or a misreading of events. The latest data show sales of new homes down 13% year over year and sales of existing homes — which is most of them — down 8%. Applications for new mortgages recently hit a 14-year low, as potential buyers seem to be backing away.

The pullback led Federal Reserve chair Janet Yellen to say in Wednesday’s Congressional testimony, “The recent flattening out in housing activity could prove more protracted than currently expected, rather than resuming its earlier pace of recovery.” That raises the prospect of a change in Fed policy if an unforeseen housing downturn materializes. The Fed has been winding down its controversial “quantitative easing” policy, which helped pushed interest rates to record lows during the past five years. But Yellen has said all along the Fed may reverse course if new developments give it a reason to.

American mobility has become increasingly constrained, which is one of the driving forces of the housing stagnation. Robert Samuelson lays the blame on the Obama economy:

Aside from a general couch-potato attitude — a reluctance to move — many theories have been advanced to explain this shift. Among them: an aging society (the middle-aged move less than the young); the rise of two-earner couples (if one loses a job, the other still has one); homeowners with “underwater” mortgages (if they sell their homes, they’ll suffer large losses); and the fading appeal of the South and West with lower costs and warmer weather.

All these sound plausible, but they’re mostly wrong, argues a new study by economists Raven Molloy and Christopher Smith of the Federal Reserve Board and Abigail Wozniak of the University of Notre Dame. A better explanation, they assert, is the job market. Jobs do cause people to move, but jobs are not as plentiful as before and wage premiums are lower. So people move less. (Their study is Working Paper 20065 from the National Bureau of Economic Research.)

For within-county moves, the aging population and homeownership do explain some of the drop in mobility, the economists found. But that’s not true for interstate moves. Declines here occurred among all age groups, suggesting that larger forces are at work. Similarly, renters as well as homeowners experienced big drops; this, too, indicates larger forces. As for the South’s and West’s fading allure, migration declines aren’t concentrated in these regions.

What has changed is the nature of the labor market, the study says. Both firms and workers have become more defensive. Companies are more reluctant to hire; perhaps in reaction, workers are more reluctant to quit existing jobs. The result: fewer job offers to tempt workers to move. In addition, bargaining power seems to have shifted to employers. In the 1980s, young workers received an average 7 percent wage increase for moving to a new job, the economists estimate; more recently, the premium is about half that. The lower wage premium also discourages people from costly and uncertain moves.

It’s not just the middle-aged and elderly who are getting defensive, either. Those emerging from college have high hopes, CBS News reports, but are going to face bitter disillusion shortly:

The college seniors who will graduate in the next few weeks have unrealistic expectations of the job market they are entering, according to a new national survey.

Only 18 percent of 2014 graduates expect to earn $25,000 or less, but more than 41 percent of 2012 and 2013 graduates are earning salaries in that range, according to the Accenture 2014 College Graduate Employment Survey. …

At the time the Accenture survey was conducted in March, only 11 percent of the new grads had secured a job, compared to 16 percent for last year’s graduates.

Another survey released this week from AfterCollege, an online entry-level job and internship resource, showed that 17 percent of grads had jobs lined up as of April, with nearly 73 percent of college seniors saying they were looking for work. At this time last year, 20 percent of seniors had jobs, according to the survey.

It’s not just the art history majors (as Obama once framed the issue) having trouble finding work in their field:

Students with degrees that are supposedly in demand did not fare any better in finding work, according to the AfterCollege survey. Nearly 82 percent of students with degrees in engineering, technology and math hadn’t found jobs.

These are the Democrats’ core age demographic – young adults with college degrees. If they’re flipping burgers rather than applying their education in higher-income jobs, they’re not going to buy the chirpy “Happy Days Are Here Again” campaign that the DNC chair apparently wants to conduct. If they’re not motivated to turn out in November, Democrats up and down the whole ticket had better start making contingency plans for their own careers after November.


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Which is a big fat ZERO!!!

canopfor on May 8, 2014 at 12:03 PM

Yeah .1% GDP growth in the first quarter is outstanding!

Sven on May 8, 2014 at 12:05 PM

Hmmmmm, …..:

business
3h
Applications for US unemployment benefits fall to 319,000, a sign of steady job market – @AP
end of alert

canopfor on May 8, 2014 at 12:06 PM

Recovery Summer? Fall?Winter?Spring?

sandee on May 8, 2014 at 12:07 PM

She also said they will run on Obamacare as well. So, the economy and Obamacare as their strong points. Even the Casey Anthony jury thinks this dope is stupid.

rjoco1 on May 8, 2014 at 12:08 PM

She was “myzeld”…

d1carter on May 8, 2014 at 12:09 PM

Hell yes, and when the approaching wave of companies pushing employees into the DeathCare system, America’s love of feckless demorats will only grow.

Bishop on May 8, 2014 at 12:10 PM

Yeah .1% GDP growth in the first quarter is outstanding!

Sven on May 8, 2014 at 12:05 PM

We call that green shoots. We also have el Qaeda on the run and health care for everyone.

butch on May 8, 2014 at 12:11 PM

Live by the lie.
Die by the lies.

Lt. for life John F. Kerry world known liar.
B. Obama lie now, lie later, lie before, lie to the end.
Maxist, Commies, Democrat Party, DNC, MSM, Senate Democrats, House Democrats all lies all the time.

Big lie now, Climate Change, rigged tempature, rigged science, rigged words, rigged news, rigged education, rigged at every turn.

Turn away.

Lies kill.

Truth is life.

Seek truth to live.

APACHEWHOKNOWS on May 8, 2014 at 12:11 PM

Proof that years of abuse of hair straightening products results in delusional behavior.

neyney on May 8, 2014 at 12:12 PM

God, she’s one ugly broad.

lostmotherland on February 26, 2014 at 4:09 PM

You got one right mofo. Proggies like her are ugly through and through.

slickwillie2001 on May 8, 2014 at 12:13 PM

She is one of their best liars!

Sven on May 8, 2014 at 12:13 PM

Over 49% of Americans receive Federal assistance. If that is Wasserman’s idea of a great American economy …

… well, I’d get the ban hammer for writing what I’d like.

M240H on May 8, 2014 at 12:16 PM

DNC chair: Heck yeah, we’re running on the Obama economy!

…they’ve got all ‘their people’ in charge of all the ‘electronic’ voting machines?

KOOLAID2 on May 8, 2014 at 12:17 PM

There is a almost total enveloping judicial blindness across this land. We are ripe for the harvest.

Murphy9 on May 8, 2014 at 12:18 PM

APACHEWHOKNOWS on May 8, 2014 at 12:11 PM

Yup.

slickwillie2001 on May 8, 2014 at 12:13 PM

Truth!

Chuck Ef on May 8, 2014 at 12:19 PM

Just this week, after the trade data was released, Goldman Sachs and JPM lowered their GDP numbers for the 1st quarter from +.1% to -.6%..morgan Stanley went to -.1%..go ahead Dems..run on the economy!!!

galtg on May 8, 2014 at 12:21 PM

Who is that brave soul that fathered her spawn? One look at her fishy face would wither anyone’s jade scepter at the root.

Rix on May 8, 2014 at 12:23 PM

Heck yea we’re running on the Obama “economy/recovery.” After all, we have all the slobbering sycophants in the lame stream media carrying water/deflecting/obfuscating/not covering… every failure of ours the last 6 years. We’re TEFLON coated baby ; )

DebraChicago on May 8, 2014 at 12:23 PM

Sargent Schultz was never as clueless or stupid as Debbie is. Fortunately Waffen-SSchultz has the Mainstream Media to protect her.

oscarwilde on May 8, 2014 at 12:24 PM

V-Day, today!!!

Knocked out the nazzis and ended up with Adolfean/Goebellian morons today.

What a scumhag!!!

Schadenfreude on May 8, 2014 at 12:24 PM

Embrace the Suck….

Electrongod on May 8, 2014 at 12:25 PM

Yeah .1% GDP growth in the first quarter is outstanding!

Sven on May 8, 2014 at 12:05 PM

You know the actual contraction must have been huge for them to pull that hilarious lie out of their azzes …

ShainS on May 8, 2014 at 12:25 PM

Just this week, after the trade data was released, Goldman Sachs and JPM lowered their GDP numbers for the 1st quarter from +.1% to -.6%..morgan Stanley went to -.1%..go ahead Dems..run on the economy!!!

galtg on May 8, 2014 at 12:21 PM

Just imagine what it would be without fracking on private land.

butch on May 8, 2014 at 12:26 PM

Recovery Summer? Fall?Winter?Spring?

sandee on May 8, 2014 at 12:07 PM

Recovery Decade …

ShainS on May 8, 2014 at 12:26 PM

Please, PLEASE run on the economy democrats..oh and Obama-democrat Care too.

jukin3 on May 8, 2014 at 12:28 PM

V-Day, today!!!

Knocked out the nazzis and ended up with Adolfean/Goebellian morons today.

What a scumhag!!!

Schadenfreude on May 8, 2014 at 12:24 PM

Schadenfreude: Check out this V-DAY:)

https://twitter.com/VDay

http://www.vday.org/home

canopfor on May 8, 2014 at 12:31 PM

A foundation of lies.

A msm made concrete mix.

Cracks will come, more larger, often.

Some like this one herein above will fall into one of them.

APACHEWHOKNOWS on May 8, 2014 at 12:32 PM

Give that child some pom poms and see if she can do a Herky!

Cindy Munford on May 8, 2014 at 12:32 PM

Flipping through the classifieds the other day I noticed the home foreclosures listing was very long.

It couldn’t be the vacationing Kenyan Pharaoh perchance?

viking01 on May 8, 2014 at 12:32 PM

DNC chair: Heck yeah, we’re running on the Obama economy!

Yes, and to complete his car into a ditch analogy, we’re running on fumes. 17 trillion dollars worth.

Cleombrotus on May 8, 2014 at 12:32 PM

What happened to Bush’s economy?

Sven on May 8, 2014 at 12:33 PM

It’s okay. Zimbabwe has offered to bail us out….

viking01 on May 8, 2014 at 12:34 PM

Has this woman been one of the constestants on
“Naked and Afraid”?

ToddPA on May 8, 2014 at 12:34 PM

Has this woman been one of the constestants on
“Naked and Afraid”?

ToddPA on May 8, 2014 at 12:34 PM

I don’t recognize her. Although…the hair….:)

butch on May 8, 2014 at 12:38 PM

See this ugly soul for what it is.

APACHEWHOKNOWS on May 8, 2014 at 12:42 PM

hello, mcfly?

cmsinaz on May 8, 2014 at 12:42 PM

God, she’s one ugly broad.

lostmotherland on February 26, 2014 at 4:09 PM

Schadenfreude on May 8, 2014 at 12:43 PM

…the brillo haired one…is not a WWII vet…has not read that author whose name sounds… like some kind of v@gina lubricant…and is a TRU-CON. Got it dummy?…I don’t care!……….signedjoana

KOOLAID2 on May 8, 2014 at 12:45 PM

Their usual mantra of we’re trying but the Republicans are getting in the way will probably still work with their cult followers but down here in the real world people are out of work, prices are rising and employers can’t afford to hire anybody. I mean real employers not McDonalds.

crankyoldlady on May 8, 2014 at 12:46 PM

Given the chance this one would collect the gold from our teeth for more re-election money.

APACHEWHOKNOWS on May 8, 2014 at 12:48 PM

If she were caught with the plyers in hand, the gold from our teeth in her pruse, the msm would just report, “DNC Chair moonlights doing free dental care”.

APACHEWHOKNOWS on May 8, 2014 at 12:51 PM

DWS looks good in the thumbnail, quite hot actually.

MisterElephant on May 8, 2014 at 12:58 PM

Despite a friendlier tax and economic climate, though, Texas still has a lower business birth rate than it did thirty years ago, and so does every other state, and every metropolitan area save one (unnamed). …

‘Unnamed’ is the new name for Washington, DC.

Resist We Much on May 8, 2014 at 12:59 PM

Voters, she said, “are asking about investing in education,

If voters are asking about investing in education, Republicans should propose the Bobby Jindal way. Offer vouchers to low-income families with school-age children to help pay for private-school tuition, to help their children escape failing public schools whose teachers and administrators are coddled by Democrats.

Since most of the recipients will be “minority” voters, they may vote Republican in order to help their children in the short term, and in the long term their children may vote Republican out of gratitude for their education.

Steve Z on May 8, 2014 at 12:59 PM

Watching DWS makes bunny cry. She is SO STUPID!

Tard on May 8, 2014 at 1:03 PM

DWS looks good in the thumbnail, quite hot actually.

MisterElephant on May 8, 2014 at 12:58 PM

You mean she combed her hair within the last month?

Steve Z on May 8, 2014 at 1:03 PM

So they are going to run on the negative economic growth we experienced last quarter? Go for it.

tommyboy on May 8, 2014 at 1:07 PM

6.3% U-3 with tie for 36-year low labor participation rate.

Woo. Hoo.

ConservativeLA on May 8, 2014 at 1:07 PM

The college seniors who will graduate in the next few weeks have unrealistic expectations of the job market they are entering, according to a new national survey.

Only 18 percent of 2014 graduates expect to earn $25,000 or less, but more than 41 percent of 2012 and 2013 graduates are earning salaries in that range, according to the Accenture 2014 College Graduate Employment Survey. …

At the time the Accenture survey was conducted in March, only 11 percent of the new grads had secured a job, compared to 16 percent for last year’s graduates.

The majority of college seniors graduating now are 22 years old, and were born between September 1991 and August 1992.

They were about 3 years old when Republicans took majority control of the House and Senate on 1/3/1995.

They grew up from age 3 to age 15 under 12 straight years of Republican majority control, when for 144 continuous months, the Employment-Population Ratio never went below 62%, and averaged 63.3%. Without even realizing it, they grew up expecting high employment as the norm, and took it for granted.

They were about 15 years old when Democrats took majority control of the House and Senate on 1/3/2007.

Just as these students were starting to look for part-time jobs at age 16, Democrats were raising the minimum wage 3 times in 3 years, locking many of these students out of many part-time jobs.

By the time these students started college, employment below 59% had become the new norm, and employment stayed below 59% the entire time that they were in college. There has been NO recovery.

Are they finally realizing what 7+ years of Democrat majority control has done to our economy?

Pssst… hey college grads… this November, you can vote to CHANGE which party has the majority.

You can vote to return to Republican majorities and what they produced (144 straight months averaging 63.3% employment and never dropping below 62% even in the wake of the Dot Com bust and the 8/11/2001 attacks), rather than keeping the status quo of what 7+ years of Democrat majorities have produced (62 straight months of employment less than or equal to 59.9%)

ITguy on May 8, 2014 at 1:34 PM

I bet her husband thinks he is the father of all her children too, even the tan nappy headed ones.

1sttofight on May 8, 2014 at 1:46 PM

144 straight months averaging 63.3% employment and never dropping below 62% even in the wake of the Dot Com bust and the 9/11/2001 attacks

Link added and typo fixed.

ITguy on May 8, 2014 at 1:54 PM

Joe Biden
41s
On May 13, Vice President Joe Biden will travel to St. Louis for an event on the economy – via @NBCNews

canopfor on May 8, 2014 at 2:00 PM

she is hot.
if I were Kramer id throw down $100 and announce “I’m out!”

avi natan on May 8, 2014 at 2:01 PM

Alternate Unemployment Charts

The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated long-term discouraged workers, who were defined out of official existence in 1994. That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers.

The U-3 unemployment rate is the monthly headline number. The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure, including short-term discouraged and other marginally-attached workers as well as those forced to work part-time because they cannot find full-time employment.

Unemployment Data Series subcription required(Subscription required.) View Download Excel CSV File Last Updated: May 2nd, 2014
*****

http://www.shadowstats.com/alternate_data/unemployment-charts

canopfor on May 8, 2014 at 2:03 PM

Guys,

Remember that she’s the DNC Chairpoodle. She has to be a cheerleader no matter what the truth is. She can’t go out there and say that no sane candidate would want to be seen with the rat-eared wonder at the local Wal-mart let alone on the campaign trail.

So….. DWS puts on the short skirt, picks up the pom poms, and tries to rev of the DNC base.

Happy Nomad on May 8, 2014 at 2:03 PM

It is a test to see if we know insane when we see it.

APACHEWHOKNOWS on May 8, 2014 at 2:03 PM

OT folks the Gosnell movie is about $100,000 short of its goal of $2.1 million with 5 days left. Please go to http://www.indiegogo.com/projects/gosnell-movie and give what you can please. This story needs to be told.

neyney on May 8, 2014 at 2:51 PM

DWS, The Cute One.

I kinda like her. Every time she’s wheeled out, we get a good laugh or some good news. A positive Pavlovian response, I suppose.

EvilMonk on May 8, 2014 at 4:07 PM

Remember that she’s the DNC Chairpoodle. She has to be a cheerleader no matter what the truth is. She can’t go out there and say that no sane candidate would want to be seen with the rat-eared wonder at the local Wal-mart let alone on the campaign trail.

Granted, but I suspect she BELIEVES the bullchit.

And guys she is not hot. Stop it.

Tard on May 8, 2014 at 4:25 PM

Perhaps Shultz should be reminded that they’ve had FIVE YEARS to improve the economy.

GarandFan on May 8, 2014 at 5:42 PM

Is DWS’ constituency as moronic as she is? It’s the only explanation for her getting votes.

sadatoni on May 8, 2014 at 5:43 PM

However, the chart itself suggests one answer in particular.

I would suggest that it shows another possible answer. Look at where the two lines cross over and exchange places: 2008 – the year Obama was elected.

jbspry on May 8, 2014 at 6:12 PM

And guys she is not hot. Stop it.

Tard on May 8, 2014 at 4:25 PM

I always think of her when I see ads for ‘Swamp People’ on TV where they are hunting alligators.

slickwillie2001 on May 8, 2014 at 6:52 PM

Hmmmm I don’t see everdiso on this thread.

CW on May 8, 2014 at 7:39 PM

They were about 15 years old when Democrats took majority control of the House and Senate on 1/3/2007…

…Are they finally realizing what 7+ years of Democrat majority control has done to our economy?

Ed’s Brookings chart shows business entries tanking along with accelerating business exits beginning around January 2007.

More than mere coincidence.

ExZek on May 8, 2014 at 10:00 PM

They were about 15 years old when Democrats took majority control of the House and Senate on 1/3/2007…

…Are they finally realizing what 7+ years of Democrat majority control has done to our economy?

Ed’s Brookings chart shows business entries tanking along with accelerating business exits beginning around January 2007.

More than mere coincidence.

ExZek on May 8, 2014 at 10:00 PM

The Bush Tax Cut recovery, which improved employment levels (from 62.0% in September 2003 to 63.4% in December 2006) and increased revenues (FY 2007 revenues were a whopping 44% larger than FY 2003 revenues!) came to a sudden end when Democrats took control of both houses Congress on January 3, 2007.

What did Democrats do as soon as they took majority control?

On January 5, 2007, just two days into the new Democrat majority, Democrats introduced a bill to raise the minimum wage three times in three years. That bill was eventually passed as a rider to troop funding (the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007), and the minimum wage was raised three times in three years, from $5.15 per hour to $7.25 per hour (a more than 40% increase in 3 years).

==============================================
EACH time that the Democrat majority raised the minimum wage, EMPLOYMENT DROPPED!
==============================================

The Democrat majority raised the minimum wage:

1) Up $0.70 to $5.85 per hour on 2007-07-24,
2) up $0.70 to $6.55 per hour on 2008-07-24,
3) up $0.70 to $7.25 per hour on 2009-07-24.

… and the Employment-Population ratio dropped to:

62.9% in July 2007,
62.2% in July 2008,
59.3% in July 2009.

The Employment-Population ratio has now been BELOW 59.0% for 56 consecutive months (more than FOUR AND HALF YEARS) from September 2009 to April 2014!

(And of course, Obama and many Democrats want to foolishly raise the minimum wage AGAIN now, to $10.10/hr!)

Democrat majority economic policies have hurt businesses and workers, especially young workers who need entry-level jobs.

If they want to have any HOPE, then they need to vote for CHANGE in November 2014.

ITguy on May 9, 2014 at 8:36 AM