Yahoo News posted a story today about the decline of the middle class under President Obama. The middle class has declined under the Obama Administration. If you remember, President Obama has stated in the past that he felt redistribution of wealth in America was needed. When wealth is redistributed in America, it goes from the middle class to the government. Sometimes the poor even get some. The rich know how to avoid having their wealth confiscated–it’s the rest of us that have the problem.
The article reports:
Administration officials said on Saturday the president would propose higher capital gains taxes, new fees on large financial firms, and other measures to raise $320 billion for programs and tax breaks aimed at the middle class.
Obama’s administration can take credit for stabilizing the U.S. economy, which is growing again and last year added jobs at the fastest clip since 1999.
But for the middle class the scars of the recession still run deep. Federal Reserve survey data show families in the middle fifth of the income scale now earn less and their net worth is lower than when Obama took office.
So what is the President’s solution to the fact that the middle class is not prospering–higher taxes that will impact the middle class. Most middle class families that have jobs have 401k accounts. As the baby boomers retire, they will begin tapping into these accounts. Some will be selling stock (creating capital gains), other middle class families may own rental property they invested in to finance their retirement. Selling that property creates capital gains. Their taxes will increase. That is not helping them.
The article further reports:
But the Fed’s Survey of Consumer Finances shows how uneven the distribution of that stimulus has been. Between 2010 and 2013, as recovery took hold and stock markets soared, the average net worth of families in the top 40 percent of income earners grew. For all others average net worth shrank, declining 19 percent for the middle fifth.
Similarly, the average earnings for families in the top 10 percent grew more than 9 percent from 2010 through 2013, while those at other levels stagnated or shrank. For the middle fifth, average earnings fell 4.6 percent.
Over the six years through 2013, the middle fifth’s average annual family earnings fell to $47,243 from $53,008 while their average net worth dropped to $170,066 from $236,525.
President Obama’s economic policies could easily be described as crony capitalism. They have very little to do with the free enterprise system that built the American economy. The economic stimulus that broke the budget helped companies that in many cases were owned by major Democrat donors and fund raisers. Nothing in the Obama Administration’s economic policies has actually made the American economy stronger. Further tax increase are only going to make things worse.