Obama and Democrat Policies Harm Minorities And The Middle Class (Krugman Is Krazy!)

Confounded Interest ^ | 11/28/2013 | Anthony B. Sanders

[whitedog57]

Government policies including the Fed monetary expansion have seemingly made matters worse for the average American family. Particularly since 2007.

The GINI coefficent is a measure of income distribution in country. And it has been skyrocketing since 2007 when Democrats took control of Congress and 2009 when they achieved a majority in both the House and Senate AND the Presidency. But for all the talk of income redistribution and “leveling the playing field,” things have only gotten worse for the average American household.

Here is the GINI coefficent for the USA since 2005. Note the decline from 2006 to 2007, and then the rapid increase from 2007 through 2012 (2013 is not available yet).

ginicoef2005

By race, the GINI coefficient for whites only has flattened, but WORSENED for black and Hispanics.

ginirace

Let’s look at the GINI coefficient and real median household income (also available only through 2012). Of course, real median household income falls after each recession and the GINI coefficient worsens after each recession. But the Great Recession created the largest spread between income distribution and real income. In other words, the rich got richer and everyone else lost ground.

giniinc

Of course, the Federal Reserve stepped in during late 2008 to save the banking system from failure and attempt to stimulate growth by lowering interest rates (and increase employment). Well, it looks like The Fed did help the GINI coefficient (that is, make income even more unbalanced).

ginifed

And as of 2012, real median household income continues to plunge as the Fed Balance Sheet continues to expand.

fedbalrealmedinmc

The good news is that real income is slowly increasing in 2013. And the rise in the GINI coefficient seems to be slowing.

household-income-monthly-median-since-2000 (5)

The housing bubble and crash clearly decimated the income and wealth of the middle class in the US. And government policies and Fed monetary easing seem to be making the problem worse. In fact, the government policies of encourage low down payment and homeownership as a means of wealth building have failed abysmally. Notice the decline in real median household income after the peak in house prices. nhsdream2

csrealinc

Can we put the GINI back in the bottle and have lower and middle class growth again? Massive government intervention to “save” the economy has resulted in even greater distortions in income and wealth.

Let’s try something else … like LESS government. Here is an interesting piece on Cyniconomics about the Larry Summers/Paul Krugman versus John Taylor debate on the stagnation. Even Jeffrey Sachs disagrees (somewhat) with Summers/Krugman.

In short, John Taylor’s point that it is BAD policy causing stagnation is correct.

evilgenie-lamp

[whitedog57]

Krugman is a statist idiot.

[headstamp 2]

The middle-class is an endangered species getting hammered from all sides.

Whether it’s from the libtard leftists or GOPe corporatists it still means death to the middle-class.

[humblegunner]

Here is the GINI coefficent for the USA since 2005.

Where?

[dowcaet]

And to think he has a Nobel Prize for economics. What? What economic proposal has this man put forward that’s been good for this country?

[Windflier]

"Here is the GINI coefficent for the USA since 2005."

Where?

Forgive the poster. He's only been here 9 years and probably hasn't mastered basic HTML yet. Here's the image:

[Son House]

Democrat Policies also keep the Fed printing $85 billion a month
under the false pretenses it will:

1. ‘fight stubbornly-high unemployment’ and

2. Janet Yellen “promote a very strong recovery”.

Please tell Yellen the recession business cycle ended June 2009 and
the Democrat policies implemented failed to grow the economy.