Obama’s non-existent economic recovery


This week, the Congressional Budget Office released its updated long-term budget and economic projections[1]. There were a few new data points regarding slower economic growth and the deficit, but what really stood out was CBO’s analysis of the labor force.

The non-partisan CBO does not expect the labor force to return to pre-2007 levels anytime within the next ten years. Put another way: The economy lost a lot of jobs in the recession, and no one expects to get those jobs back anytime soon.

One could argue, as the CBO points even points out, that pre-2007 levels are historical outliers. That is correct. But a further reading of the CBO’s report reveals a glaring truth: Obamacare is hurting the labor force. Reads the report:

In particular certain aspects of the Affordable Care Act will tend to reduce labor force participation, with the largest effect stemming from the subsidies that reduce the cost of purchasing health insurance through the exchanges. Because the subsidies decline with rising income (and increase with falling income) and make some people financially better off, they reduce the incentive for some people to work as much as they would without the subsidies.

In an era of supposed economic recovery, President Obama’s signature health care law is acting as a disincentive for people to return to the workforce. Welcome to the Obama recovery.

We also saw this week  [2] that even the country’s largest labor union public distances itself from the president’s economic team. “For most folks, it seems to be an economy of stagnation,” said AFL-CIO President Richard Trumka.

What’s more, a survey [3] released by Rutgers University this week showed that Americans more than ever, fear the economy is permanently scarred by the recession.

All of this points to the fact that Obama’s policies have harmed the economy. American workers deserve better. They deserve a president who recognizes free-market principles are they only way to grow an economy. They deserve a president who also doesn’t grant amnesty to illegal immigrants while Americans are still out of jobs. American workers deserve a president who puts them ahead of a political ideology.

Just a few things to keep in mind this Labor Day.