Changes

[[File:Summer of Recovery.JPG|200px|right|thumb|'''Recovery Summer'''<br>''Source:United States Department of Labor, Bureau of Labor Statistics'']]

[[File:Summer of Recovery.JPG|200px|right|thumb|'''Recovery Summer'''<br>''Source:United States Department of Labor, Bureau of Labor Statistics'']]

 

The [[Obama administration]] proclaimed '''Recovery Summer''' on June 17, 2010 to spotlight the imapact [[President Obama]]'s economic program after passage of the [[American Recovery and Reinvestment Act]] (or "[[Economic stimulus|Stimulus package]]") by the [[Democrat]]ic controlled [[2008 Elections|111th Congress]] in 2009.<ref>[https://www.whitehouse.gov/the-press-office/administration-kicks-recovery-summer-with-groundbreakings-and-events-across-country Administration Kicks Off "Recovery Summer" with Groundbreakings and Events Across the Country], The [[White House]], Office of the Press Secretary, Press Release, June 17, 2010. Retrieved from www.whitehouse.gov  October 9, 2010.</ref> Vice President [[Joe Biden]] was placed in charge of the effort.  

The [[Obama administration]] proclaimed '''Recovery Summer''' on June 17, 2010 to spotlight the imapact [[President Obama]]'s economic program after passage of the [[American Recovery and Reinvestment Act]] (or "[[Economic stimulus|Stimulus package]]") by the [[Democrat]]ic controlled [[2008 Elections|111th Congress]] in 2009.<ref>[https://www.whitehouse.gov/the-press-office/administration-kicks-recovery-summer-with-groundbreakings-and-events-across-country Administration Kicks Off "Recovery Summer" with Groundbreakings and Events Across the Country], The [[White House]], Office of the Press Secretary, Press Release, June 17, 2010. Retrieved from www.whitehouse.gov  October 9, 2010.</ref> Vice President [[Joe Biden]] was placed in charge of the effort.  

==GDP Report showed the Obama [[Economic stimulus|Stimulus]] failed==

==GDP Report showed the Obama [[Economic stimulus|Stimulus]] failed==

The [[U.S. Commerce Dept.]] reported [[Gross Domestic Product]] has not responded adequately to the one trillion dollars in stimulus passed since Speaker [[Nancy Pelosi]] took control of the [[U.S. House of Representatives]] in early 2007. More than 7 million jobs have been lost however, affecting the lives of nearly 30 million Americans. Several trillion dollars have also been added to the [[National debt]].  

The [[U.S. Commerce Dept.]] reported [[Gross Domestic Product]] has not responded adequately to the one trillion dollars in stimulus passed since Speaker [[Nancy Pelosi]] took control of the [[U.S. House of Representatives]] in early 2007. More than 7 million jobs have been lost however, affecting the lives of nearly 30 million Americans. Several trillion dollars have also been added to the [[National debt]].  

By contrast, the 3.0%+ growth rates sustained by the [[Reagan]] era tax cuts as the United States emerged from the 1982 [[recession]] provided the necessary stimulus to maintain a growing population and declining unemployment (second chart at right).<br>

By contrast, the 3.0%+ growth rates sustained by the [[Reagan]] era tax cuts as the United States emerged from the 1982 [[recession]] provided the necessary stimulus to maintain a growing population and declining unemployment (second chart at right).<br>

<br>

<br>

The [[Congressional Budget Office]] reported the GDP output gap (the difference between actual GDP and potential GDP if all labor and [[capital]] were fully employed) is about 6.5 per cent, and economic growth for the next few years [https://www.cbo.gov/ftpdocs/108xx/doc10871/Summary.shtml "will probably be muted.]" The US economy has no recent experience of living with an output gap of anywhere near this level.

The [[Congressional Budget Office]] reported the GDP output gap (the difference between actual GDP and potential GDP if all labor and [[capital]] were fully employed) is about 6.5 per cent, and economic growth for the next few years [https://www.cbo.gov/ftpdocs/108xx/doc10871/Summary.shtml "will probably be muted.]" The US economy has no recent experience of living with an output gap of anywhere near this level.

 

===The Output Gap===

===The Output Gap===

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.

Workforce participation constitutes the total number of eligible working age adults. Some workers (women who drop out of the workforce for child rearing purposes, or seniors who work to remain active rather because they need the money, for example) in the adult population are dicounted, or deemed 'ineligible' to work to arrive at the base number from which '''Unemployment''' number is calculated. Prior to the recession, more than 66% of working age adults were considered to makeup the workforce. Nearly two full percentage points, or 3,000,000 workers have been shaved off the statistics by government number crunchers, to arrive at the base number used to calculated a 9.6% Unemployment figure. If those three million eligible workers were addded back in, the 15,000,000 unemployed figure would swell to 18,000,000 (each one percent unemployment percentage point represents roughly 1.5 million people).

Workforce participation constitutes the total number of eligible working age adults. Some workers (women who drop out of the workforce for child rearing purposes, or seniors who work to remain active rather because they need the money, for example) in the adult population are dicounted, or deemed 'ineligible' to work to arrive at the base number from which '''Unemployment''' number is calculated. Prior to the recession, more than 66% of working age adults were considered to makeup the workforce. Nearly two full percentage points, or 3,000,000 workers have been shaved off the statistics by government number crunchers, to arrive at the base number used to calculated a 9.6% Unemployment figure. If those three million eligible workers were addded back in, the 15,000,000 unemployed figure would swell to 18,000,000 (each one percent unemployment percentage point represents roughly 1.5 million people).

 

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>https://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>https://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm</ref> declined $16.8 billion in the last 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>https://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>https://www.youtube.com/watch?v=Q8erePM8V5U</ref> to the American people: