Yes, the President is ready to tackle poverty (again). Seems we’ve heard this before.
In his speech yesterday the President made many assertions that just aren’t true. So lets break it down.
Firstly, the President says trend of growth in the income inequality gap is mostly in the developed world. Well, i guess it depends what your definition of ‘developed’ is. Because most of the largest gaps are in the under developed world.
Secondly, Mr. Obama claims that the income gap is worse in America. Again, it depends on what you mean by “America”, because the evidence shows that it is Latin America with the largest income inequality gaps. But clearly the President was referring to the Untied States. Unfortunately for Obama, the facts tell a different story.
The data clearly shows the United States is in the middle. Latin America, South Africa, and South America fare much worse. So it’s painfully obvious few will call out the President on his inaccuracies. But i am more than happy to. What makes this more astonishing is the fact that income inequality has grown under this president. Yes, under Bush, the 1% captured a disproportionate share of the income gains from the Bush boom of 2002-2007. They got 65 cents of every dollar created in that boom, up 20 cents from when Clinton was President. Under Obama, the 1% got 93 cents of every dollar created. Not only is that more than under bush, its up 28 cents! In the transition from Bush to Obama, inequality got worse, faster, than under the transition from Clinton to Bush. Obama accelerated the growth of inequality.
Later in his speech, Mr. Obama invokes the pope, a homeless guy, and the stock market (gotta be a joke in there somewhere). He goes on to say if the homeless guy dies of exposure he gets no news coverage. But if the stock market loses 2 points, its all over the news. On the homeless guy, it would make the local news, maybe Mr. Obama doesn’t have time to catch it. His remark on the stock market may be true. But consider this, his Federal Reserve has flooded the market with cheap money and in turn helped widen the inequality gap.
Moving along in the President’s ‘Tale of two Americas”, Obama brings up education. This clearly means he wants more funding for the Department of Education. But let’s look at the facts, this President has spent more in one term on education than Bush did in two. We are talking billions of dollars. And what did we get for our money? Stagnation at the least, less educated students for sure.
Instead of focusing on the real reasons the gap is widening, Mr Obama is playing the fairness card. Into his fifth year in office, trillions spent on stimulus, long term unemployed continues to be at unprecedented levels. Labor participation rate continues to hit new lows, currently at 35 year low.
In conclusion, this president never passes the chance to trash America and its capitalism. Obama went on to talk about children born into poverty here in the United States, but as the map below will indicate, being born in America isn’t so bad.