(Young Cons) Huge Billboard in San Francisco Shows What Will Happen
if the Minimum Wage is Increased
H/T: Lana Wong
(CBO) “Between 2009 and 2012 the federal government recorded the largest budget deficits relative to the size of the economy since 1946 causing its debt to soar.”
Flashback: Remember in September 2013 when President Obama boasted the U.S. budget deficit has been cut in half adding,”Our deficits are now falling at the fastest rate since the end of World War II, I want to repeat that. Our deficits are going down faster than anytime since before I was born.”
Earlier today I wrote here that White House Press Secy Josh Earnest claimed on Monday, the Obama administration’s foreign policies in a number of areas have enhanced the world’s “tranquility” subsequent to Obama’s statement in June that “the world is less violent that it has ever been.”
What parallel universe does Obama live?
(Bloomberg) Obama’s recovery is faltering–In June, the Mortgage Bankers Assn lowered their forecast for combined new and existing home sales in 2014 to 5.28 Million a decline of 4.1% while median prices of existing homes gained 11.5%
As prices climb, the ability of Americans with stagnant wages to buy homes wanes–the median U.S. Household Income rose less than 1% in 2013 according to data by Sentier Research from 2009 to 2013–In April, median income was $52,959 when adjusted for inflation its nearly 6% lower than in June, 2009 which marked the beginning of the (so called) economic recovery.
On the 18 June I wrote here that consumer prices spiked 0.4% in May after rising 0.3% in April the largest increase in 15 months.
With full time jobs plunging in June, falling household wages and a spike in consumer prices this year, how this Obamanomics working out for you?
Flashback: Remember back in July, 2006 The Daily Signal reports when House Democratic Leader Nancy Pelosi appeared at a gas station in Washington, DC to draw attention to high gas prices under President George W. Bush together with other Democrats, all of whom criticized the Bush Administration for his energy policy blaming him for the high gas prices.
Subsequently in 2008 then House Speaker Pelosi blasted the Bush Administration’s so called ‘big oil agenda” for rising gas prices saying: “This is a scam of the greatest magnitude.”
If rising gas prices were the “scam of the greatest magnitude,” in 2008 what are they today?
Where oh where are Democrats and House Minority Leader Nancy Pelosi criticism of the Obama Administration for skyrocketing gas prices? Why the double standard?
(Zero Hedge) Remember in January, Q1 GDP was expected to rise 2.6? Now comes the final Q1 GDP revision and its a doozy–at -2.9% far below the expected -1.8% and well below the -1.0% revision the Bureau of Economic Analysis reported last month–an absolute disaster.
While the economic woes had been largely blamed earlier this year on the unusually harsh Winter in much of the country, the magnitude of the negative revisions suggest other factors at play other than the weather–Growth has been revised down 3% since the government’s first estimate was published in April which had the economy expanding at a paltry rate of just 0.1%
More here from FOX Business
(USA Today) Consumer prices spike 0.4% in May after rising 0.3% in April, the largest increase in 15 months, the cost of food and gasoline showed their biggest increases. Yahoo Finance reports that airline fares seen their largest increases in 15 years with things to get worse.
On the 06 June, I wrote here that Southern California housing/rental costs are expected to rise during the next 12 months.
This disastrous economic news for Americans is further highlighted by a report from the Bureau of Economic Analysis on the 29 May that said the nations economy stalled out during the 1st Qtr of the year with GDP falling 1.0%
Obamanomics failures are further illustrated by data from the Bureau of Labor Statistics in May, showing that the U.S. labor participation rate remains at an anemic 62.8% unseen since Jimmy Carter was president.
(The Fiscal Times) One of the Obama Administration and Democrats major selling points of the new health care law was that “ObamaCare is projected to cut the national deficit by over $200 Billion during its first 10 years and over $1 Trillion over the next two decades…” however not according to the Congressional Budget Office.
In a little noticed footnote first reported this week by Roll Call updating estimates of the effects of insurance coverage provisions of the law, the agency headed by Douglas Elmendorf acknowledged, that neither the CBO nor the Joint Committee on Taxation (JCT) could determine precisely how scores of provisions–would impact on longterm government spending.
“CBO and JCT can no longer determine how the provisions of the ACA that are not related to the expansion of health insurance coverage have affected their projections of direct spending and revenues,” the CBO wrote. “The provisions that expanded coverage established entirely new programs or components of programs…Isolating the incremental effects of those provisions on previously existing programs and revenues four years after enactment of the ACA is not possible.”
As the Roll Call story noted, the CBO based its original estimates of long-term deficit reduction on the assumption that ObamaCare which included Medicare cuts and numerous new taxes would be implemented as written, that was before a blizzard of Obama Administration changes and delays in deadlines of the implementation of the health care law.
(LA Times) Rental home costs are going to continue to rise–nearly 78% of Southern California apartment building owners say they plan to hike rents in the next 12 months according to a new survey from real estate broker Marcus & Millichap about 22% plan to increase rents by at least 3%
On the 04 June, I wrote here that over half of Americans reportedly are already struggling to keep their homes and the problem is only going to get worse.
Say Good-Bye to Prop 13 ?
In May, The Sacramento Bee–Capitol Alert reported after decades of wrangling by Democrats (that just can’t seem to confiscate enough of taxpayers money to spend, I digress) during a hearing of the ‘Assembly Revenue and Taxation Committee’ lawmakers agreed on changes to the 1978 law governing reassessments of commercial property when it changes hands, citing one of their old stand-by favorite liberal arguments ‘fairness’ of the tax system, as if voters were not smart enough when Prop 13 passed by a 2 to 1 margin.
Will confiscating more money from commercial/business property owners actually result in more “fairness” that Democrats like to claim or just raise the costs of doing business and make things (such as rental costs) more expensive?
The latter of course, as Forbes correctly points out–Corporations (such as rental property owners) don’t pay taxes they pass on their business costs and expenses to their customers or in this case, to their tenants in the form of higher rents.
Why is it that California voters continue to reelect liberals to Sacramento is anyones guess–Just as, how many licks does it take to get to the ‘Tootsie Roll’ center of a “Tootsie Roll Pop” the world may never know?
On the 29th May, I wrote here that revised Gross Domestic Product (GDP) fell at an annual rate of 1% in the first three months of the year (previously the GDP was reported to have grown at an anemic rate of 0.1%)
According to Ben Casselman, Chief Economist of FiveThirtyEight this was just just the tenth time since WW II that GDP growth has been negative outside a recession–three of those negative quarters immediately preceded recessions.
Related: Lethargic Economy –Los Angeles Times