The Top 6 Ways That Obama is Ruining Our Economy

Back in 2008, Democratic President hopeful Barack Obama fielded criticisms for the tax plans he proposed for the American people if he got elected. They were deemed ‘socialist’ by his Republican rivals. Today, President Obama faces stark criticism of the very same tax policies from not only his political rivals but also from various other sections of the society. In fact, America’s first black President has been given the dubious honor of deliberately orchestrating what may well be a second Great Depression, matching the devastating downturn of 1929.

The Need of the Hour

As America struggles to get back to its feet after the recession, what is required is a conducive environment to encourage industrial growth. At present, unemployment rate continues to hover at around 10%, housing and real estate segment activity continues to remain low key and the investors are choosing to display more caution than ever before.

The Democratic government has come under fire for its contribution to keeping the economic growth subdued. Many of President Obama’s policies have been criticized for exacerbating the bad economic conditions rather than improving things. Here are a few of his proposed and implemented economic policies and beliefs that have drawn the ire of many people.

**Update 11/7/12: If you think new items should be included in the list please post a reply below with your recommendations and I will update it accordingly.

Navigation Menu of the Top 6 Ways That Obama is Ruining Our Economy

1. More Government Spending Means More Growth
2. Increased Taxes
3. The American Public Will be Encouraged to Start Saving Once More by These Policies
4. Cap and Trade Policy will Make American Businesses More Eco Friendly and Sustainable
5. More Support from Employers Towards National Health Schemes to Help Employees
6. Increase Productivity by Diverting Capable Workers Out of Non Profit Work

1. More Government Spending Means More Growth

The President is a firm believer that increased government spending is the panacea to America’s recession woes. This logic is flawed in two very obvious ways:

More spending means that the stakes are becoming higher in the economy and businesses will have to compete with the government for resources, which may just starve them out of business.

Greater government spending is facilitated by increased taxes from the general public and businesses. Additional tax burden can in no way contribute to growth, expansion or innovation in any economy.

2. Increased Taxes

The President has been taking great pains to reassure that it will be only the rich who will be affected by the higher tax policy. This means that the rich will be cushioning the poorer Americans from the worst of the economic crisis by means of providing the funds to lead America into prosperity.

However, critics argue that increasing taxes during recessive times is a sure shot way of ensuring that the economy takes a nosedive into a depressive state. What is really needed now is to alleviate the tax burden so that businesses and individuals alike can regain the ability to build up lost resources. It is this policy that can help rekindle business investment and allow small investors to begin saving again.

The President’s stand on increasing capital gains has also come under fire. Critics point to the obvious fact that the higher capital gains tax translates into less funds for entrepreneurs and business houses to invest in expansion. This will cause the businesses to stagnate and they will stop growing.

The President believes that his tax increases will boost economic growth, which in turn will improve the overall conditions and the standard of living of all Americans. However, the truth may well be quite the opposite. The increased payroll taxes, capital gains, re-establishment of estate taxes and other hikes will impose such heavy burden on the public that standard of living will see a steady decline in the coming years for the lack of spare cash to spend on comforts.

3. The American Public Will be Encouraged to Start Saving Once More by These Policies

On the contrary, the savings capacity will dramatically reduce as a result of these policies. For instance, the rise in capital gains tax will discourage the people from investing in assets. This will deal a huge blow to the already subdued housing market.

Death taxes will result in people preferring to die ‘penniless’, in a manner of speaking, rather than have survivors pay up huge taxes on property and assets.

Greater payroll taxes will discourage two income families from continuing to earn more only to pay more to the government. Households that contribute more to the nation’s productivity with both husband and wife working will in effect be penalized with higher taxes.

4. Cap and Trade Policy will Make American Businesses More Eco Friendly and Sustainable

Under this policy, companies that exceed the carbon emission limits will have to purchase permits. The President may have the right ideas on the environmental front but where financial sustainability or feasibility is concerned, the cap and trade policy is doomed to failure.

While companies may toe the line and buy the permits, they are not likely to allow the increased costs to dent their profits. The costs will be passed on to the consumers. Analysts predict a hike in price of gasoline and electricity, both of which will significantly affect the spending power of the common man. And contrary to the President’s euphemistic expectations, it is not just the ‘rich’ American who will bear the brunt of this policy.

5. More Support from Employers Towards National Health Schemes to Help Employees

As employers face increased burden from national health scheme contribution for their employees, the employment situation is far from likely to improve. The increased costs of expanding the employee base will need to be justified by the productivity that can be derived out of it.

If the increase in productivity does not justify costs, the current unemployment levels, which are already quite alarming, will at best, continue and at worst, the rate will go beyond the current 10% level. With a significant percentage of Americans continuing to be unemployed, any growth in the economy is bound to be severely restricted.

6. Increase Productivity by Diverting Capable Workers Out of Non Profit Work

The President appears to have a special aversion to non profit or charitable institutions. His policy was made clear even in a much earlier speech. Back then he spoke of how capable workers must devote themselves to working in core businesses rather than diverting their capabilities and efforts towards non profit organizations. Working for production oriented concerns will help boost the industrial activity in the country and propel the economy, he had then stated.

Obama’s focus on cutting tax breaks on charity, social causes and making charitable spending more expensive appears to be in line with his earlier thought. However, this could be dangerous for the economy, as the onus of such expenditure will then fall on the government itself. When this happens, funds earmarked for other developmental activities will be diverted to these ‘non productive’ causes.

As America continues to reel under what critics are calling the ‘blinkered approach’ to fiscal policies, there are an increasing number of Americans who are beginning to think that Barack Obama may prove to be the leader who led the nation to the beginning of its end as a ‘super power’. With a shaky economy and weakening dollar, does America’s only hope for economic recovery lie in a change of governance?

  • Bob Schwartz

    CAp and Trade is a good thing? really?

  • tIncorvia

    The last economic trough that we had was December of 2007. Obama was in office January of 2008. Therefore, Obama has done nothing but good for the American economy. Why can’t politicians look at numbers? Any 8 year old could figure that out.

  • its me

    I love how the gentleman who name himself Moron posted a comment stating that if Obama is elected for a second term he will put our economy in an even worst condition then blame it on the next president. Uhhh… .. . THATS EXACTLY WHAT BUSH AND THE REPUBLICANS DID!

    Republican’s complain about unemployment, gas prices, foreign disputes and outsourcing. Bush funded two outstretched wars on a credit card, borrowed vast amount of money from China, gave money to help banks which magically disappeared in some cases and had foreign people throwing shoes at him because they hated him so much. Yet they say Obama stepped into office and immediately we are in trillions of debt. He has made a number of positive changes and could hav e made more if Republicans would work with him rather than focusing on making him a 1 term president.

    I see Republicans signs about the country stating “It’s not working, vote Republican”, and I want to scream ” IT’S NOT WORKING BECAUSE VOTING REPUBLICAN IS WHAT BROKE IT”!

    • actuallyhasheadonshoulders

      check your facts. Clinton years were nowhere near as prosperous as once believed. It has been proven as a fact that the economy was on the downswing prior to George Bush taking office due largely in part to the bank loan crisis (ie f-may & f-mack) where in a delusional society anybody would be approved for bank loans, thus the housing market boom and the false appearance of a functioning market, when in reality it was simply cooking the books and ignoring the obvious sign of things to come.

      I’m an independent and proud of it, niether democrats or republicans can get it right, but what i will say is that i am not for the country moving in a socialist direction. I want nothing to do with my money paying for others to survive, or taking wealth from the rich to give to the poor (and im certainly not in the rich category). Survival of the fittest, Darwinsim in a sense are the basis of capitalism and are what this country have prospered with and were founded on. The fact that we just voted in a clown that wants to LEGITIMATELY CHANGE WHAT THIS COUNTRY IS FOUNDED ON AND STANDS FOR IN EVERY IMPORTANT WAY STRUCTURALLY AND SYSTEMATICALLY is nothing short of criminal to me and makes me ashamed for the other half of the country who are to blind to see this.

      As it stands, if you want the country to at least have a shot over the next 4 years (no guarantees) you voted for Romney. If you want the country to keep moving further away from its founding values and systems that DO work when performed properly, and you like getting hand outs: you voted for Obama.

  • Hector

    Obama looked like a dear in headlights in the first two debates so far. It’s almost like he came into them over confident and under prepared. Romney is starting to run away with this.

  • Maia

    Where are the sources? How do I know any of this is actually true? Where are the examples of him doing these things? Sure you might say, “Look at the past four years!” But with out specific examples how do I know you aren’t just spewing lies?

    I am on the fence about the elections, if this had sources it might have tipped me to the Romney side but without sources I can’t trust any of it.

    • Mr. 1%

      On the fence, lol.

      How can anyone be on the fence about two completely different candidates? That comment just blows my mind it’s like you have absoutley no clue what either party is about. I can’t think of any two previous candidates that are more different than Romney and Obama.

      I for one love Romney for the single fact that I’m in the 1% and it’s good for my bank account. Obama thinks it’s my duty to pay for the lower class which is insane. I built my business from the ground up with blod sweat and tears. What right does Obama have to say I didn’t?

      • Dear 1%

        I completely agree! My professional goal has always been to open a small business. Now that I am nearing the end of college (and no people can get through college without going into thousands of dollars of debt! I am proof of it. I made it through w/no GOVERNMENT HELP. It’s called get off your butt, cut the cable, and start mowing lawns, sweeping leaves, flipping burgers, or book keep for a business….WORK!)

        If Obama is re-elected I have started considering what I want to do!?!?! Why should I try to work harder??? oh right….because there’s millions on welfare depending on me to make more money and “give a little more”. I also don’t want to start a business if i am gonna be paying for other’s healthcare and funding abortion! That’s just plain wrong!

        But….in the end it is small business/companies that make our economy grow. If I start a business….I WILL BUILD IT. NOT THE GOVERNMENT. If you don’t work, you don’t eat. If Obama would allow the pipeline to open back up, drill in the US, and cut the spending then there would be even more jobs. But guess what…there are still jobs…start a budget…cut the personal spending and you will find money in places you never knew!

  • Embarrassed Rockefeller Republican

    It used to be the most embarrassing thing about being Republican was the John Birch social conservatives–people who blow up abortion clinics, teach their children creationism, racists and bigots of every stripe.

    Now those same undesirables want to bash Obama under the banner of fiscal conservatism–but they don’t understand the first thing about economics. Since fiscal conservatism is just a convenient way to hide their real motives, I doubt these Tea Party assholes will ever bother to learn how the economy works.

    Or governance, for that matter. The people who love America the loudest are the ones who are fucking it up the most. Patriotism isn’t about flag-burning amendments, people. Patriotism is knowing that Constitutional amendments are for expanding liberties–not taking them away.

    Taking responsibility doesn’t mean talking about it. Actually learning the issue–instead of parroting the idiots on talk radio–is the first step. Trashing other peoples’ approach is the clearest sign that you don’t know what you’re talking about.

  • Shawn

    If you look back on the history of the united states and its growth you’ll see that the nation was full of penniless, pioneers who exalted simply by working their hands to the bone with no fear of failure. With their blood, sweat, and tears as well as the occasional barter from one man to the next, they saw our country to the power it’s at today.

    The problem with our country today is the people are so fixated on getting a hand out from our government. Everybody says they want change but they keep voting on the same group of monsters they have for years. The fact of the matter is if we want to change this country for the greater good we must think outside the box. Republican and democrat leaders have been pulling the same radical stunts for years.

    The republicans want to keep the money on lock down and in the hands of corporate america for the sake of reducing government spending. Meanwhile the democratic leaders want to increase government spending and basically play robin hood and hand out money to so many who haven”t rightfully earned it! Come on america! What happened to the pioneer attitude we built this great nation on! We’ve handed our hope over to our government allow it to grow into a superpower, forcing us to sit on our hands.

    Now we have an election coming up.

    We’ve done weeded out most candidates and now were down to the ones who had the most money to stick their faces in ours! Why! We didn’t build this country on greed! We built it on hopes and dreams while avoiding persecution of many different things. I’m an independent. I’ve always voted independent. I’m not going to say that all independents have the right idea because they are like any other party. They blow smoke right up our backdoor. But they express change allot more, and their ideas revolve around a pioneers way of thinking. Exactly how our country has grown. Now I’m not saying independent is the way to vote. That’s just m opinion. I’m only saying that in order to dust and get up we need to look outside the box.

    Don’t vote on a shmuck who’s money and ivy league education stuck him in your face. Everybody should scrounge, do their research, find the right guy for the job, get to work by any means possible, and be the pioneers that our fore fathers were! It”s up to us! Not our government! We the people, for the people, by the people!

    Thank you for reading my comment!

  • Myself

    Obama makes up for his piss poor performance by being a bottom feeder – catering to illegal immigrants (who are slaughtering Americans) and gays (who refuse to agree to disagree)

  • Lisa

    I can’t stand Obama. He is the worst president this country has ever seen. As far as i’m concerned, he should’t be living here in the U.S. he is extremely anti American.

    Has anybody seen the prices of gas and food lately and what about unemployment still hovering at around 10%?

    I don’t want to hear that it’s Bush’s fault. He had 4 years to “change” how do you like it now? I’ll keep my guns and my freedom, thank you very much! Why don’t you Obama lovers go around to main street U.S.A. and ask most American’s how life is going for them? Ask them if they were the lucky one’s that didn’t lose their homes? Ask them if they found jobs yet ? Ask the men and women in our military about their pay cuts, and talk to the 25 million people who are on food stamps.

    America that we once new has turned into a very real hell . Anyone who supports this guy should move out of the U.S. with him.

  • Mike

    All of you need to go back to civics class. No matter how much you like to bash a President he does not “spend money”. Read the Constitution. Congress is responsible for spending money. This is not a dictatorship.

  • MORONS

    Wow. S many idiots on this thread it blows my mind. Did you guys actually read this article? The biggest problem we’re facing right now is Obama spending money like a crazy kid in a candy store putting us in debt like no other before. How can you guys NOT see that?

    Do you honestly think that the the additional spending he has done is going to help this country in ANYWAY? IDIOTS! ABSOLUTE MORONS. Just wait until the economy goes into a deeper recession (probably 2-3 year from now) because of all the QE BS he’s done. He continues with the QE BS because it keeps the US afloat while he is in power. Once he’s out of power and the economy crashes, they’ll just blame it on the new president. This OBAMA douchebag knows it. If he’s reelected though, it might just bite him in the ass because the economy will crash before he’s out and we’ll know he ruined this country.

  • Matt

    These are simply your unfounded, opinions. At least back up your statements with some references and data. “However, the truth may well be quite the opposite.” This isn’t a high school paper. I just happened on this site and after reading this realize I’ll never visit again, unless I need another example of an writer spouting opinions with nothing to back it up. I’d be interested in a response to this comment that might change my mind.

  • John

    Are you kidding me government spending is the way countries get out of recessions. Remember the Great Depression? The militarization from World War II gave the U.S. economy the stimulus it needed to climb out of it. Our past two wars are only money pits as we have no other countries at war to really profit our defense industry. War is a poor idea to begin with but huge injections of money into infrastructure helps everyone. They create well paying jobs, and the new infrastructure is an investment to our economy.

  • Princess Buttercup

    The Republicans ruined the economy with their unpaid for mandates (two monster tax cuts in a time of war er wars that also weren’t paid for and Medicare Part D with the inability to bargain for lower prices). George Bush created only 1 million jobs during his 8-years. In comparison, Obama has created 4.2 million in 3 years. Bush and Dick “The Iraq War Will Pay For Itself and Last 6 weeks” Cheney left this country upside down in a ditch on fire.

    The country lost 8 million jobs by the time Obama was sworn in. The country was hemorrhaging 750,000 jobs a month. The goddamn teabagging dipshits in the House (aka Republicans) have done nothing but obstruct and America is going to weigh in and pass judgment in November. President Obama will be re-elected and the Democrats will regain control of the House. Then Democrats will continue to heal this country’s economic woes.

    Oh and guess what? President Obama killed OBL when Bush stopped looking for him. So there.

    • Anonymous

      He really didn’t. It was the Navy SEALs that killed Osama bin Laden. Also, during Bush’s term in office, enhanced interrogations were approved so that the CIA could better extract bin Laden’s whereabouts. Since the raid of Osama’s complex, Obama has done nothing but assume the majority of credit that should be given to: first and foremost the Navy SEALs that risked their lives to kill bin Laden, the CIA, and (hopefully to many people’s chagrin) Former President Bush.

  • Lachlan

    I’m an Australian and we have the most robust economy in the world. We barely felt the recession and we have high taxes, welfare, universal healthcare, encouragement to save and pretty much everything you just said. As being bad Australia has and as I said at the start we barely felt the recession.

  • Emile

    Oh no, the super rich won’t be able to afford their 3rd luxury car! And all so some unemployed guy can get some food stamps.

  • James

    This is a terribly mis-informed article, and just plain false. For starters taxes are lower, repeat after me, lower than in the Bush administration. Please quit your gratuitous propaganda.

  • Andy

    Look, I’m a moderate conservative so I’m generally on your side, but I keep reading articles from the right that say a lot of things but never refer to any facts, studies or numbers. You got to back every assertion with something rather than opinion and theories otherwise this is just another nail in the coffin of my party which used to be so great!