The cold, hard truth about the Obama economy
What's really been going on the last four years?
- Duration 7:31
- Date Jan 30, 2013
What's really been going on the last four years?
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A lot of back -- Hannity there is breaking news on the US economy as the Commerce Department announced earlier today that our economy shrank at a rate -- point 1% in the last quarter of 2012.
Now that is the first time a contraction -- happened in more than three years and with the unemployment rate still high at seven point 8% consumer confidence now in decline.
There was only one way for the Democrats to react as usual predictably blaming Republicans.
Now it all started with Jay Carney during the white house press briefing when he said the economy was facing a major headwind.
And that -- -- being the Republicans in congress.
And moments later House Minority Leader Nancy Pelosi released a statement saying quote.
Today's disappointing GDP report is a direct result of the economic uncertainty created by the house Republican strategy of obstruction.
And manufactured crisis.
What do they ever gonna take -- -- Nancy Pelosi Jay Carney wake up realize Obama now has been in office more than four years.
Unbelievable he was reaction gopac president -- -- -- -- former Clinton economist at the Harvard.
Kennedy school professor Jeffrey Frankel mr.
Frankel -- -- -- You know -- -- having its work they've -- this -- Bush's fault Bush's fault Bush's fault for years -- both houses of congress for two of those years.
The president -- everything he wants passed.
This time -- put his pants on like command -- at the table and accept responsibility.
Six trillion dollars later and that.
Fifty million Americans -- poverty I'm sorry I'm food stamps one and six in poverty one in four kitsch kids in this country.
Meeting food stamps is that Bush's fault or is that Obama's fall.
Well I certainly haven't gotten everything he wanted pastor under the the most recent congress the -- that said that takes this let's talk about this number.
-- point 1% negative.
Current and -- that's I don't know how much you want.
Emphasize one number but that is today's.
News that we all thought during the last couple months of 2012 that there would be a lot of uncertainty because of this fiscal -- that was gonna hit -- January 1.
It turned out that the biggest effect was -- defense equipment purchases fell by 22%.
In the last quarter that's the big.
Negative number that's in that just to this morning's.
Knows it's -- biggest event at DePaul and depends.
And we the last six trillion dollars in debt and trillion dollar deficits as far as the eye can see so it's not a big cut.
In government spending now is it.
Well -- continues a pattern of the last two years which is that.
Government sector has been contracting and the private sector has been expanding I was actually surprised.
In -- to this morning's number that -- the household consumption was up pretty strongly.
Business fixed investment was up especially equipment I thought those would be adversely -- you have -- -- -- -- -- -- -- -- -- So there's -- cannot.
I hope people are getting jobs -- -- trying to -- this really isn't that bad six trillion in debt no new jobs fifty million Americans on food stamps and liberals are telling us it's really not that bad.
Well shot nobody's advocating that we return to the final years of President Bush's economy.
But we can't remain in the Obama economy which is let's manage every piece.
Of the economy because it's not working we have fewer jobs now than when this president took office.
And let's be clear about who really is being hurt us not try this economy -- -- -- win this true eight point throwing a -- -- sending the labor participation rate we have eight point three -- work million Americans in that labor force.
And let's be clear about who's being hurt who's being hurt is the working poor who are trying to work their way up the economy there are no jobs for them to move up to.
The long term unemployed that there are new jobs for them to go to.
For the young person who's just graduated from college and once the find a job they can't so they get the stay at their parents' house for a little bit longer question.
It seems definition of insanity is repeating the same thing over and over again expecting a different result.
So we're following Europe's model we're following Japan's model stimulus debt deficits why would we expected to for result following their failed model.
Well what's unfortunately the president and that is taking a look at -- Republican governors across the country are doing.
Nine of the eleven states have actually created a net positive on jobs.
Our Republican governors and why -- this president actually invite Republican governors -- and say look what policies are you putting in place to create jobs.
He won't because ultimately his ideology believes that everything government.
Can do it should do and it should control and it ultimately hampers our economy you know professor you know -- -- historically with the worst the recession the stronger the recovery.
Four years Obama's policies pretty much got what he want hasn't happened why.
Okay four years ago when -- Obama was inaugurated.
The economy was in free -- the rate of contraction are GDP was over 9% annualized in the last quarter under bush we didn't know at the time was that bad but it -- Day job loss was 600000 per month and financial markets were completely seized up in a way that hasn't happened since the Great Depression in your -- spreads and somewhat.
That free fall.
Leveled off within a few months and within five months of recession was over all that means the things we're not getting bad.
Anymore but it's been a long -- that's I'm out of that what we've had for the last few years is.
Growth which is not.
-- fast enough but it's a lot better than what it was when Obama came out professor at the growth to average cut rate for the year 2012 was 2.2 percent and we've had professor to bring down unemployment very slowly nodded rapidly enough but slowly from Venezuela as well as those that.
Obama said the economic recovery -- -- begun he told us in 2010.
It was the summer of recovery.
We haven't seen -- jobs created we've seen record debt and record deficits.
We've seen dependency go to all time record highs.
The worst -- recovery since the Great Depression.
And you're defending this do you think it's good that we have eighteen million more Americans on food stamps -- it's good that we have one in six Americans on poverty.
Do you think it's good the president has told us again and again that this is getting better and it's not.
Tell me -- it's getting better this is not good news for anybody -- So -- shots on the unemployment rate is coming -- gradually the growth rate has been positive GDP going up that you keep mentioning the budget deficit.
That has been down as a percentage of the.
Anemic -- professor you know better than that you've studied history this is one of the worst recoveries that you could even call it that.
It looks like we may be headed for a double dip.
Buy dot dot I I got that and by the way this number is is essentially zero and admitted he's zero point won't -- That's -- -- have had an annualized rate.
Then -- on average between the initial estimate which this is your best estimate and the final numbers the revision is plus or minus one point 3%.
So there's a 50% chance that the number's gonna turn out to be minus one point 3% at 50% chance that it's going to be positive.
I think I thought he looked confident -- the absolute best this quarter.
Barack -- we'll we'll put that coin and for the people that are out of work and unemployed and we don't -- even count anymore and the people getting crumbs in terms of food stamps good luck to them.
Things things are things are trying to -- your grandma was still down more rapidly and if Obama's odd jobs bill had been passed.
And 2011 on the outside no it's Bush's Bush's fault republicans' fault this president is blameless.
That's pretty pathetic all right good to see both thank you thank you.