Thursday, July 25, 2013

#590 (7/25) "Analysis| Obama’s Economic Speech:"[Part 1]

REMINDER: Check out this week's "Truth That Transforms  broadcast  at www.truthinaction.org). This week's broadcast is about how God's institution of marriage has been under assault and is esp. so by homosexual activists. What is amazzing is that this message was delivered 10 years ago! Also presented is a special feature on the value of fathers to society and the increasing tragedy of fatherlessness. Don’t miss it

PRAISES AND PRAYER REQUESTS:

ATTENTION: TODAY is the 14th day of the 30 days of the Muslim holy month of Ramadan. (see link below for resource material you can download.) Please join me in focusing your prayers EVERY DAY for these over one billion people who need to hear the gospel of Jesus.[NOTE: 1) You can download a  page of helpful basic information about Islam and Ramadan at: http://www.opendoorsusa.org/downloads/pdf-downloads/Islam_reference_guide-1.pdf ; and 2) The following is from a 30-day prayer guide you can download at: http://www.opendoorsusa.org/downloads/pdf-downloads/2013-ramadan-prayer-calendar-1.pdf (The following is from that prayer guide.)July 25 – 17th Day of Ramadan - KING (Iraq) “See, your king comes to you, righteous and victorious, lowly and riding on a donkey.” (Zechariah 9:9) There is a long history of God’s chosen people living in cities like Baghdad and Mosul (Nineveh); Abraham is believed to have been born in what is modern-day Iraq. As little as one decade ago, Iraq was home to one of the largest Christian communities in the Middle East. But today, due to war and oppression, a mass exodus is taking place, and Christianity is on the verge of extinction. Pray during Ramadan for Iraq once again worship the true King!

"Angry Islamists Turn Wrath on Egypt's Christians,"  By George Thomas, CBN News Sr. Reporter http://www.cbn.com/cbnnews/world/2013/July/Angry-Islamists-Turn-Wrath-on-Egypts-Christians/  Friday, July 12, 201 - "Egyptian Christians are facing growing retaliation by angry Islamists for opposing ousted President Moham3med Morsi. His supporters say Christian leaders were behind his removal from office....On Thursday, the body of a Christian merchant was found decapitated in a cemetery. Last Saturday, a Coptic Christian priest was shot by gunmen in an outdoor market. Also, days after the military coup that removed Morsi from office, Muslim extremists in southern Egypt burned dozens of Christian homes and stabbed four believers to death. "It's part of the Brotherhood's mobilization that they are targeting Christians, that they are renouncing them as behind this. If the Brotherhood is able to portray what happened as a Christian-dominated or Christian-driven protest, then they get to gain massive support in the streets," Tadros explained.PRAY for the nation of Egypt, as it faces a crucial  moment, 1) that the recent events would result in its becoming a true democracy and NOT an Islamic state; 2)  that the peoples' freedoms, in particular the religious freedom of its minorities (specifically its oppressed Christians) would be protected; 3) for peace and stability to return; 4) that the U.S. will effectively reach out to the new government, and 3) for safety for Americans living in Egypt  

American Pastor Saeed Held Prisoner in Iran - June 5th Update - "Saeed's Wife Uses UN Speech to 'Plant Gospel'," by George Thomas, CBN News Sr. Reporter, June 05, 2013, http://www.cbn.com/cbnnews/world/2013/June/Saeeds-Wife-Uses-UN-Speech-to-Plant-Gospel/?cpid=EU_CBNNEWSPM_2013_156"Prayers from Prison: American Pastor Held in Iran Releases Letter," May 22, 2013; http://www.presidentialprayerteam.com/Prayerwatch?pw=1458"...Abedini has been held at the brutal prison for 238 days, enduring long stints in solitary confinement, and, according to his supporters, beatings and torture at the hands of his jailers and fellow inmates. For months, he has been suffering from serious injuries, including internal bleeding from beatings with no proper medical attention, according to his family and attorneys."(Sources: Fox News, Assemblies of God website) Please PRAY:1) For the imprisoned Pastor Abedini, and for those Iranians who tend to his needs in prison to treat him more humanely. 2) For his family in Boise, Idaho. and their efforts to involve the U.S. State Department in securing Pastor Abedini’s release. And 3) For the impact of his witness upon believers and non-believers, in America and across the world. And if you have not yet, join the over 600,000 worldwide who have signed the petition asking for his release at www.SaveSaeed.org

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"ANALYSIS | Obama’s Economic Speech: Another Summer Rerun ",[Part 1] - BCurtis Dubay, July 24, 2013 

President Obama traveled to Illinois today to give the same tired, worn-out economic speech [1] he’s been giving for almost five years now. Rather than offering new solutions that could revive the dormant economy and put people back to work, the President offered the same old policies that have already failed, namely more stimulus spending on infrastructure and misguided educational programs. Taking money out of one area of the economy and spending it in another through the government does not create economic growth.

The unemployment rate is still much too high at 7.6 percent; 11.8 million Americans are out of work [2]; and the economy grew at a paltry 1.8 percent last quarter [3]. At this point in a recovery, growth should far surpass that low rate.

The main reason the economy continues to grow below its potential is the uncertainty businesses feel because of the President’s own policies. Obamacare and the Dodd-Frank financial reform legislation are making it impossible for businesses to plan. Adding to the uncertainty is a debt crisis still lingering in the near future, unless Washington reforms entitlements like Social Security and Medicare soon—yet the President refuses to offer a serious plan.

The damage of all this uncertainty is severe. The Federal Reserve Bank of San Francisco, headed by Janet Yellen—reportedly one of President Obama’s top picks to be the next Chairman of the Federal Reserve—said in a report released this week [4] that if not for the current policy uncertainty, the unemployment rate would be 6.5 percent today, much lower than where it actually stands.

Heritage experts give their initial analysis of the President’s speech below.

Growth Slower Than It Should Be After a Recession
The President wants to blame sequestration for the weak economy. The truth is that the economic recovery has been mediocre since before the sequester kicked in and consistently worse than economists expected back in 2009.

If the recovery from the 2009 recession had been typical, the economy would already be back to normal, and the President would be touting his success and the resilience of the American entrepreneur.

Data gathered by the Federal Reserve Bank of Minneapolis shows that gross domestic product 
(GDP) now is just 2.5 percent larger [5] than it was in 2007. In nine of the previous 10 recessions, GDP was more than 13 percent larger than its pre-recession peak after five years. The lack of employment growth is also troubling. The adult employment-population ratio dropped like a stone from 63 percent in mid-2007 to 58.7 percent in 2009. In 2010, it stood at 58.5 percent. In 2011, 58.2 percent. In 2012, 58.6 percent. Now, in 2013, it’s still stuck at 58.7 percent. A Heritage study last year [6] found that, after adjusting for demographics, 10.5 million fewer Americans were working in 2011 than in 2007. Unfortunately, the labor market has barely improved in the last two years.
Salim Furth, Senior Policy Analyst, Macroeconomics

Americans Still Upwardly Mobile
The President said “unfortunately, opportunities for upward mobility in America have gotten harder to find over the past 30 years.” This claim may sound persuasive, but it has little validity in economic literature. One of the most recent and comprehensive papers on economic mobility stated that “Our results, which pertain to the cohorts born between 1952 and 1975, do not reveal major changes in intergenerational mobility.” Children continue to surpass their parents, with 93 percent in the bottom tier doing better than their parents, while 88 percent of middle-class children will have more income than their parents. So far, the preponderance of the evidence does not support this claim.
Rea Hederman, Director, Center for Data Analysis and Lazof Family Fellow

All Incomes Rising
The Occupy Wall Street Movement may be dead as a doornail, but its spirit is kept alive by President Obama. Only five paragraphs into his address, the President went after the target of their once-seething animosity: the reviled 1 percent. “The income of the top 1 percent nearly quadrupled from 1979 to 2007, while the typical family’s barely budged,” he claims.

According to the nonpartisan Congressional Budget Office [7], after-tax income has risen for all Americans, albeit by very different margins, during this timeframe. For those in the middle three quintiles—i.e. the “typical families”—income has increased by almost 40 percent.
As Ron Hasking and Scott Winship of the Brookings Institution conclude [8]: “There is no disappearing middle class in these data; nor can household income, even at the bottom, be characterized as stagnant, let alone declining.”

It’s also worth noting the great falsehood that is implied in all this talk about the 1 percent: the notion that in America, we have static classes of haves and have nots. In reality, because we have economic mobility in this country, the composition of the 1 percent varies over the years and the decades. Some of today’s one percenters were not even born 30 years ago, and most were not in the 1 percent at the time.
- David Azerrad, Research Fellow and Associate Director, B. Kenneth Simon Center for Principles and Politics

Debt Is Growing Under Obama
If President Obama had a magic wand, he might just wish America’s debt problem away. As it is, however, public debt doubled[9] under his watch, and the nation’s debt problem is very real and getting worse. Trying to obscure the issue by pointing at a lower deficit in 2013 as justification to go on another stimulus spending spree is reckless. In the President’s words: "If you ask some of these Republicans about their economic agenda, or how they’d strengthen the middle class, they’ll shift the topic to “out-of-control” government spending—despite the fact that we have cut the deficit by nearly half as a share of the economy since I took office."

Setting the record straight: Deficits projected at $642 billion by the Congressional Budget Office for this year are “low” only when compared to their trillion-dollar-plus levels over the past four years. The U.S. deficit and debt situation actually worsened since before the recession [10], and corrective measures are even more urgent now [11] than they were in 2007.

Publicly held debt, which Congress borrows in credit markets in the U.S. and abroad, is projected to grow by $7 trillion in just one decade, from $12 trillion today to more than $19 trillion by 2023. Continuing on this course means that the President and Congress would pile an additional $56,000 in debt on every American household, adding to the already massive $94,000 per household debt burden today. Add to this the debt owed to the Social Security and Medicare trust funds and other intragovernmental debt, and the per-household debt burden is even more massive, approaching $140,000 and growing.

This reckless accumulation of debt has to stop. It threatens the very prosperity of the middle class [12] President Obama claims to want to help with his policiesAmericans are looking to the President for leadership when it comes to solving the nation’s budget problems, not proposals to make the problem even worse.
Romina Boccia, Grover M. Hermann Fellow in Federal Budgetary Affairs

[italics emphasis mine]

[Part 2 of this analysis will be in the next blog post]
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Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org; URL to article: http://blog.heritage.org/2013/07/24/analysis-obamas-economic-speech-another-summer-rerun/

URLs in this post:

[1] tired, worn-out economic speech: http://www.businessinsider.com/obama-speech-economy-knox-college-full-text-2013-7
[2] 7.6 percent; 11.8 million Americans are out of work: http://www.bls.gov/news.release/pdf/empsit.pdf
[3] paltry 1.8 percent last quarter: http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
[4] report released this week: http://www.frbsf.org/economic-research/publications/economic-letter/2013/july/us-labor-market-uncertainty-slow-recovery/
[5] just 2.5 percent larger: http://www.minneapolisfed.org/publications_papers/studies/recession_perspective/
[6] Heritage study last year: http://www.heritage.org/research/reports/2012/08/not-looking-for-work-why-labor-force-participation-has-fallen-during-the-recession
[7] Congressional Budget Office: http://www.cbo.gov/sites/default/files/cbofiles/attachments/10-25-HouseholdIncome.pdf.
[8] conclude: http://www.brookings.edu/research/opinions/2012/12/11-middle-class-haskins-winship
[9] , public debt doubled: http://www.heritage.org/research/reports/2013/06/the-many-real-dangers-of-soaring-national-debt
[10] worsened since before the recession: http://blog.heritage.org/2013/07/23/moodys-further-deficit-reduction-needed-to-maintain-stable-outlook/
[11] more urgent now: http://blog.heritage.org/2013/07/10/hurrah-too-soon-white-house-budget-revision-shows-759-billion-deficit-in-2013/
[12] threatens the very prosperity of the middle class: http://www.heritage.org/research/reports/2013/02/how-the-united-states-high-debt-will-weaken-the-economy-and-hurt-americans


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