Changes

The Output Gap is a reflection of actual vs potential output. The U.S. economy was operating 6.5% below its productive capacity. At 1% growth, it would take the better part of a decade to return 10% of the workforce to employment, barring no other unforeseen disasters.  The two Stimulus packages, since the Democrats took control of Congress in January 2007, represented an incredible waste of resources which could have been used to foster job creation rather than add to a colossal foreign debt.

The Output Gap is a reflection of actual vs potential output. The U.S. economy was operating 6.5% below its productive capacity. At 1% growth, it would take the better part of a decade to return 10% of the workforce to employment, barring no other unforeseen disasters.  The two Stimulus packages, since the Democrats took control of Congress in January 2007, represented an incredible waste of resources which could have been used to foster job creation rather than add to a colossal foreign debt.

The original term [[Keynesian]] [[New Deal]]ers used for the unemployed was "[[New_Deal#Double_dip_recession|wastage]]."

The original term [[Keynesian]] [[New Deal]]ers used for the unemployed was "[[New Deal#Double dip recession|wastage]]."

Another factor affecting the Output Gap since the '''[[110th Congress|Pelosi/Reid Congress]]''' took office is the reported decline in Workforce participation.<br>

Another factor affecting the Output Gap since the '''[[110th Congress|Pelosi/Reid Congress]]''' took office is the reported decline in Workforce participation.<br>

Workers during '''Recovery Summer''' were making less money due to a decline in the average number of hours worked per week. Likewise fewer payroll hours does not bode well for the Unemployed, as payroll hours are first to be increased before an employer hires more workers. Declining payroll hours and Workforce participation are two examples of 'under utilization of resources' contributing to the Output Gap.

Workers during '''Recovery Summer''' were making less money due to a decline in the average number of hours worked per week. Likewise fewer payroll hours does not bode well for the Unemployed, as payroll hours are first to be increased before an employer hires more workers. Declining payroll hours and Workforce participation are two examples of 'under utilization of resources' contributing to the Output Gap.

[[File:Real Disposable Personal Income.JPG|200px|right|thumb|Personal income took a marked decline during Recovery Summer. Consumer spending, job creation were all affect.]]<br>

[[File:Real Disposable Personal Income.JPG|200px|right|thumb|Personal income took a marked decline during Recovery Summer. Consumer spending, job creation were all affect.]]<br>

The [[United States Department of Commerce]] announced Real Disposable Personal Income<ref> http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm</ref> declined $16.8 billion in the lasr reporting period of Recovery Summer.  Consumer spending which accounts for 70% of all economic activity, job creation, and [[Unemployment]] were all affected. One cause was fewer payroll hours.  

The [[United States Department of Commerce]] announced Real Disposable Personal Income<ref>http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm</ref> declined $16.8 billion in the lasr reporting period of Recovery Summer.  Consumer spending which accounts for 70% of all economic activity, job creation, and [[Unemployment]] were all affected. One cause was fewer payroll hours.  

Further declines in worker takehome also are scheduled to occur after January 1, 2011, when the Obama tax increase is slated to take effect. While campaigning in [[Dover]], [[New Hampshire]], on September 12, 2008 while  then [[Barack Hussein Obama 2008 Presidential campaign|candidate Obama]] made this solemn promise<ref>http://www.youtube.com/watch?v=Q8erePM8V5U</ref> to the American people:

Further declines in worker takehome also are scheduled to occur after January 1, 2011, when the Obama tax increase is slated to take effect. While campaigning in [[Dover]], [[New Hampshire]], on September 12, 2008 while  then [[Barack Hussein Obama 2008 Presidential campaign|candidate Obama]] made this solemn promise<ref>http://www.youtube.com/watch?v=Q8erePM8V5U</ref> to the American people:

The total number of lives affected by Unemployment since the [[110th Congress]] when the [[Recession]] began is well above the constant 15,000,000 unemployed reported. As roughly 2,000,000 newly unemployed enter the jobless ranks monthly, and another 2,000,000 finding jobs are rotated out, the cumulative effect means over 30 million people have directly suffered unemployment.

The total number of lives affected by Unemployment since the [[110th Congress]] when the [[Recession]] began is well above the constant 15,000,000 unemployed reported. As roughly 2,000,000 newly unemployed enter the jobless ranks monthly, and another 2,000,000 finding jobs are rotated out, the cumulative effect means over 30 million people have directly suffered unemployment.

[[File:Weekly UC Claims 21 Aug 2010.JPG|200px|right|thumb|Nearly 500,000 per week were still losing their jobs during Recovery Summer.<br>''Source: U.S. Dept. of Labor,<br> Bureau of Labor Statistics.'']]<br><br>

[[File:Weekly UC Claims 21 Aug 2010.JPG|200px|right|thumb|Nearly 500,000 per week were still losing their jobs during Recovery Summer.<br>''Source: U.S. Dept. of Labor,<br> Bureau of Labor Statistics.'']]

 

 

By September 2010, nineteen months into the Stimulus, the Labor Dept claimed the number of "marginally attached"<ref>http://www.bls.gov/news.release/empsit.nr0.htm</ref> underemployed (part time workers seeking full time work and workers taking employment beneath their skill set) reached over 2,800,000 persons (18.2% of the workforce<ref>http://townhall.com/columnists/RichGalen/2010/10/29/relapse_summer</ref>), up from 2,200,000 in President Obama's first year.

By September 2010, nineteen months into the Stimulus, the Labor Dept claimed the number of "marginally attached"<ref>http://www.bls.gov/news.release/empsit.nr0.htm</ref> underemployed (part time workers seeking full time work and workers taking employment beneath their skill set) reached over 2,800,000 persons (18.2% of the workforce<ref>http://townhall.com/columnists/RichGalen/2010/10/29/relapse_summer</ref>), up from 2,200,000 in President Obama's first year.

[[File:Total workforce.JPG|200px|right|thumb|The workforce shrunk nearly 400,000 jobs during Recovery Summer.]]

[[File:Total workforce.JPG|200px|right|thumb|The workforce shrunk nearly 400,000 jobs during Recovery Summer.]]

And the workforce continued to shrink.

And the workforce continued to shrink.

[[File:Exisitng Home Sales July 2010.JPG|200px|right|thumb|]]

[[File:Exisitng Home Sales July 2010.JPG|200px|right|thumb]]

==Housing stimulus falters==

==Housing stimulus falters==

2,100,000 housing construction jobs have been lost since the [[Nancy Pelosi|Pelosi]]/[[Harry Reid|Reid]] [[Democrat]]s captured the [[U.S. Congress|Congress]] in the [[110th United States Congress|2006 mid-term elections]].

2,100,000 housing construction jobs have been lost since the [[Nancy Pelosi|Pelosi]]/[[Harry Reid|Reid]] [[Democrat]]s captured the [[U.S. Congress|Congress]] in the [[110th United States Congress|2006 mid-term elections]].

[[File:HomeSalesGapAugust2010.jpg|200px|right|thumb|]]

[[File:HomeSalesGapAugust2010.jpg|200px|right|thumb]]

The "Distressing" gap widened between exisitng home sales and new home sales as the National Association of Homebuilders Confidence Index remains at historic lows. "Builders haven't seen any reason for improved optimism," said a recent NAHB press release.<ref>http://www.nahb.org/news_details.aspx?sectionID=134&newsID=11318</ref>

The "Distressing" gap widened between exisitng home sales and new home sales as the National Association of Homebuilders Confidence Index remains at historic lows. "Builders haven't seen any reason for improved optimism," said a recent NAHB press release.<ref>http://www.nahb.org/news_details.aspx?sectionID=134&newsID=11318</ref>

==Housing Starts hit record low==

==Housing Starts hit record low==

[[File:StartsCompletionsMultifamily.jpg|200px|right|thumb|]]

[[File:StartsCompletionsMultifamily.jpg|200px|right|thumb]]

New Home Construction hit a record new low under [[President Obama]]'s economic program, the lowest level since records have been kept starting in 1969. Housing Construction employment has been the driving force of job creation in leading the way to economic recovery in recent decades. More than 2,000,000 workers were formerly employed in the home construction field prior to the [[Fannie Mae]] and [[Freddie Mac]] government meltdown of subprime mortgages sparking the economic malaise.

New Home Construction hit a record new low under [[President Obama]]'s economic program, the lowest level since records have been kept starting in 1969. Housing Construction employment has been the driving force of job creation in leading the way to economic recovery in recent decades. More than 2,000,000 workers were formerly employed in the home construction field prior to the [[Fannie Mae]] and [[Freddie Mac]] government meltdown of subprime mortgages sparking the economic malaise.

==Mortgage delinquency and foreclosures==

==Mortgage delinquency and foreclosures==

[[File:Delinquency and foreclosures.jpg|200px|right|thumb|]]

[[File:Delinquency and foreclosures.jpg|200px|right|thumb]]

[[File:A homeless dwelling.jpg|175px|left|thumb|'''[[Homeless]] dwellings are on the increase, as the U.S Government's spending expands at the expense of individuals and the private sector economy.''']]

[[File:A homeless dwelling.jpg|175px|left|thumb|'''[[Homeless]] dwellings are on the increase, as the U.S Government's spending expands at the expense of individuals and the private sector economy.''']]

Since the [[110th United States Congress]] took office under [[Democratic]] leadership in January 2007, [[mortgage]] delinquencies, foreclosures, and repossessions have proceeded on an unrelenting march til they have reached record levels in late Summer, 2010. [http://www.cnbc.com/id/39192246] The Mortgage Bankers Association reported foreclosures have increased 25% in 2010 bringing the total to 2,300,000 homeowners tossed out of their homes. <ref>http://www.wtop.com/?nid=111&sid=1863430</ref>

Since the [[110th United States Congress]] took office under [[Democratic]] leadership in January 2007, [[mortgage]] delinquencies, foreclosures, and repossessions have proceeded on an unrelenting march til they have reached record levels in late Summer, 2010. [http://www.cnbc.com/id/39192246] The Mortgage Bankers Association reported foreclosures have increased 25% in 2010 bringing the total to 2,300,000 homeowners tossed out of their homes.<ref>http://www.wtop.com/?nid=111&sid=1863430</ref>

==Bank failure rate doubled since 2009==

==Bank failure rate doubled since 2009==

[[File:ProblemBankListSept2010.jpg|200px|right|thumb|]]

[[File:ProblemBankListSept2010.jpg|200px|right|thumb]]

The  [[Federal Deposit Insurance Corporation]] (FDIC) reported the U.S. Bank failure rate was running at double the number of bank failures in 2009, with twice as many banks on the FDIC's Problem List compared to the previous year, as well.<ref>http://www.ritholtz.com/blog/2010/06/fdic-bank-failure-83/</ref> By Septmeber 2010 the Problem List increased to 872 banks in danger of failure and being closed.<ref>http://www.calculatedriskblog.com/</ref> The banks had assets of $422.4 billion.

The  [[Federal Deposit Insurance Corporation]] (FDIC) reported the U.S. Bank failure rate was running at double the number of bank failures in 2009, with twice as many banks on the FDIC's Problem List compared to the previous year, as well.<ref>http://www.ritholtz.com/blog/2010/06/fdic-bank-failure-83/</ref> By Septmeber 2010 the Problem List increased to 872 banks in danger of failure and being closed.<ref>http://www.calculatedriskblog.com/</ref> The banks had assets of $422.4 billion.

More than 120 banks and financial institutions who took TARP money failed to make  their scheduled payments. Five other banks that received money from the $700 billion Troubled Assets Relief Program which then [[Senator Barack Obama]] voted for have failed altogether, making it unlikely the [[U.S. Treasury]] will ever recover the money poured into those institutions.  '''Goldman Sachs''', '''JP Morgan''', '''Citigroup''' and '''Morgan Stanley''' which recieved $70 billion in '''[[bailout]]''' funds are among the largest donors to President Obama's political campaigns.<ref>http://www.opensecrets.org/politicians/contrib.php?cid=N00009638&cycle=2008</ref><ref>http://www.votesmart.org/finance.php?can_id=9490</ref> <br>

More than 120 banks and financial institutions who took TARP money failed to make  their scheduled payments. Five other banks that received money from the $700 billion Troubled Assets Relief Program which then [[Senator Barack Obama]] voted for have failed altogether, making it unlikely the [[U.S. Treasury]] will ever recover the money poured into those institutions.  '''Goldman Sachs''', '''JP Morgan''', '''Citigroup''' and '''Morgan Stanley''' which recieved $70 billion in '''[[bailout]]''' funds are among the largest donors to President Obama's political campaigns.<ref>http://www.opensecrets.org/politicians/contrib.php?cid=N00009638&cycle=2008</ref><ref>http://www.votesmart.org/finance.php?can_id=9490</ref> <br>

[[File:Shanty town.jpg|175px|right|thumb|'''More than 43 million Americans now live in [[poverty]], up nearly 4 million just since [[President Obama]] took office, according to the Census Bureau.'''<ref>http://www.census.gov/hhes/www/poverty/data/incpovhlth/2009/pov09fig04.pdf</ref> <ref>http://www.usatoday.com/news/nation/census/2010-09-16-poverty-rate-income-numbers_N.htm</ref>]]<br><br>

[[File:Shanty town.jpg|175px|right|thumb|'''More than 43 million Americans now live in [[poverty]], up nearly 4 million just since [[President Obama]] took office, according to the Census Bureau.'''<ref>http://www.census.gov/hhes/www/poverty/data/incpovhlth/2009/pov09fig04.pdf</ref><ref>http://www.usatoday.com/news/nation/census/2010-09-16-poverty-rate-income-numbers_N.htm</ref>]]

 

 

=='Consumer protection' created higher rate fees for credit card users==

=='Consumer protection' created higher rate fees for credit card users==

:''''With this new law, consumers will have the strong and reliable protections they deserve.  We will continue to press for reform that is built on transparency, accountability, and mutual responsibility – values fundamental to the new foundation we seek to build for our economy."''<ref>http://www.whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/</ref>

:''''With this new law, consumers will have the strong and reliable protections they deserve.  We will continue to press for reform that is built on transparency, accountability, and mutual responsibility – values fundamental to the new foundation we seek to build for our economy."''<ref>http://www.whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/</ref>

Since then credit card interest rates have soared to a nine-year high with the average interest rate jumping to 14.7%, up from 13.1% before the law was passed.  This occurred when all other interest rates have been fallen to historic lows.<ref>http://cc.bingj.com/cache.aspx?q=http%3a%2f%2fwww.creditcards.com%2fcredit-card-news%2fcredit-card-rates-chart-1276.php&d=4706378043624044&mkt=en-US&setlang=en-US&w=ff11364,3d68ce3f</ref> The increase created a dramatic spread of 11.45 percentage points between the average credit card interest rate and the prime rate -- the largest margin in 22 years.<ref>http://money.cnn.com/2010/08/23/news/economy/credit_cards_synovate/index.htm</ref>

Since then credit card interest rates have soared to a nine-year high with the average interest rate jumping to 14.7%, up from 13.1% before the law was passed.  This occurred when all other interest rates have been fallen to historic lows.<ref>http://cc.bingj.com/cache.aspx?q=http%3a%2f%2fwww.creditcards.com%2fcredit-card-news%2fcredit-card-rates-chart-1276.php&d=4706378043624044&mkt=en-US&setlang=en-US&w=ff11364,3d68ce3f</ref> The increase created a dramatic spread of 11.45 percentage points between the average credit card interest rate and the prime rate—the largest margin in 22 years.<ref>http://money.cnn.com/2010/08/23/news/economy/credit_cards_synovate/index.htm</ref>

President Obama has been a major recipient of campaign contributions from large [[Wall Street]] Banks, many of which received [[TARP]] [[bailout]] funds which then Senator Obama voted for.

President Obama has been a major recipient of campaign contributions from large [[Wall Street]] Banks, many of which received [[TARP]] [[bailout]] funds which then Senator Obama voted for.

==Unemployed over 50 may never work again==

==Unemployed over 50 may never work again==

[[File:Elder workers.jpg|150px|left|thumb|Senior workers may be the first written off and forgotten as a result of the [[American Recovery and Reinvestment Act of 2009]].''' ]]

[[File:Elder workers.jpg|150px|left|thumb|Senior workers may be the first written off and forgotten as a result of the [[American Recovery and Reinvestment Act of 2009]].''' ]]

The '''''[[New York Times]]''''' has reported older [[unemployed]] workers over 50 years of age may never work again in their lifetimes.<ref>[http://www.nytimes.com/2010/09/20/business/economy/20older.html?_r=1</ref>  Of the 15,000,000 who are now unemployed since President Obama took office, 2,200,000 are 55 or older. The unemployment rate in this group is 7.3 percent, an all time high, and more than double what it was at the beginning of the latest recession.  

The '''''[[New York Times]]''''' has reported older [[unemployed]] workers over 50 years of age may never work again in their lifetimes.<ref>[http://www.nytimes.com/2010/09/20/business/economy/20older.html?_r=1]</ref>  Of the 15,000,000 who are now unemployed since President Obama took office, 2,200,000 are 55 or older. The unemployment rate in this group is 7.3 percent, an all time high, and more than double what it was at the beginning of the latest recession.  

Nearly half of them have been unemployed six months or longer, according to the Labor Department.  

Nearly half of them have been unemployed six months or longer, according to the Labor Department.  

==Durable Goods slump==

==Durable Goods slump==

[[File:Durable Goods 24 Sept 2010.JPG|200px|right|thumb|]]

[[File:Durable Goods 24 Sept 2010.JPG|200px|right|thumb]]

'''Recovery Summer''' continued with a drop in demand for U.S. manufactured durable goods.  Steep reductions in new orders for airplanes and cars were reported, according to the [[U.S. Commerce Department]]. The drop was worst than expected, analysts said.

'''Recovery Summer''' continued with a drop in demand for U.S. manufactured durable goods.  Steep reductions in new orders for airplanes and cars were reported, according to the [[U.S. Commerce Department]]. The drop was worst than expected, analysts said.

==Consumer confidence hit new low==

==Consumer confidence hit new low==

[[File:Consumer Confidence.JPG|200px|right|thumb|]]

[[File:Consumer Confidence.JPG|200px|right|thumb]]

Consumer Confidence continued its downward trek in what the [[Obama administration]] proclaimed as '''Recovery Summer.''' Consumer Confidence is a key indicator given that '''[[hope]]''' and expectations play a large part on individual consumer and investors' decisions which have a major impact on the broader economy.<br>

Consumer Confidence continued its downward trek in what the [[Obama administration]] proclaimed as '''Recovery Summer.''' Consumer Confidence is a key indicator given that '''[[hope]]''' and expectations play a large part on individual consumer and investors' decisions which have a major impact on the broader economy.<br>

[[File:Consumer confidence2.JPG|200px|right|thumb|]]

[[File:Consumer confidence2.JPG|200px|right|thumb]]

The Conference Board, an independent non-advocacy research association, reported a worse than expected fall in its Consumer Confidence Index to 48.5, the lowest point since February's 46.4. It takes a reading of 90 to indicate a healthy economy — a level not approached since the recession began in December 2007.

The Conference Board, an independent non-advocacy research association, reported a worse than expected fall in its Consumer Confidence Index to 48.5, the lowest point since February's 46.4. It takes a reading of 90 to indicate a healthy economy — a level not approached since the recession began in December 2007.

{{reflist}}

{{reflist}}

{{Template:Economic preparedness topics}}

{{Economic preparedness topics}}

[[Category : Economic Preparedness]]

[[Category:Economic Preparedness]]

[[Category:Obama Administration]]

[[Category:Obama Administration]]

[[Category:111th United States Congress]]

[[Category:111th United States Congress]]