Obama's Fake Economic Recovery: The Only Solution Is World Revolution
09 January 2014
By Stephen Lendman
Shortly after he took office in 2009, headlines touted
recovery. It never began. It doesn't exist. Protracted
Main Street Depression conditions affect growing
Things go from bad to worse. Human suffering is real.
Pathetically little is done to help. Neoliberal
harshness is official policy. Both parties support it.
Obama's agenda is anti-populist. He targets America's
most disadvantaged. He's done so throughout his
tenure. He deplores social justice.
He's gutting America's New Deal and Great Society.
He's waging class war. He's force-feeding pain and
He's got lots more planned ahead. He wants maximum
wealth shifted to corporate America and super-rich
elites. He wants it stolen from ordinary people to
benefit them. He lies claiming otherwise.
Social safety net protections are disappearing on his
watch. It's happening when they're most needed.
Rogue politicians don't care. Bipartisan complicity
bears full responsibility. Obama does most of all.
He demands neoliberal harshness. Since taking office,
he's cut numerous social programs. He wants Medicare
and Social Security privatized en route to eliminating
He's beholden solely to monied interests. They own
him. They make policy. Whatever they want they get. It
comes at the expense of popular interests.
Friday's jobs report reflects dismal conditions for
most Americans. One analyst called it "piss poor."
Market Ticker.org's Karl Denninger said it "sucks."
December's report makes "lies (about economic
recovery) a hell of a lot harder to believe," he
Friday's report followed the worst holiday season
retail sales since 2009. Blaming it on bad weather
It was marginally below normal. Super-storm Sandy had
little effect. It greatly impacted America's
It affected millions in 12 states. It hit New York
City hard. America's largest metropolis shut down.
Heavily populated areas lacked power, heat and other
public services across a wide region. Up to two weeks
or longer were required to restore them in some areas.
Storm conditions and aftermath had little effect on
jobs creation. Blaming weather this time hides
Obama's notion of jobs creation is tax cuts for
corporate America and super-rich elites. Nothing lifts
millions out of poverty better than living wage-paying
jobs. Lots of them.
Washington has no program to create them. Friday's
report highlighted what's not addressed. Paul Craig
Roberts offers some of the best analysis.
"(A)lleged recovery took a direct hit" on Friday, he
said. It revealed reality for growing millions. It
exposed wrongheaded policy.
Around 95% of jobs created were rotten ones. They were
in low-pay/poor benefit wholesale and retain trade
positions. They were largely part-time or temp.
They reveal a nation in decline. When the world's
richest country can't produce living-wage jobs, race
to the bottom dystopia follows. America is on a fast
track toward it.
Saturday headlines downplayed disaster. Tout TV
talking heads tried putting a brave face on economic
failure. Roberts said he's been examining monthly jobs
reports for years.
This one was disturbing, he said. "Normally a mainstay
of jobs gains is in the category 'education and health
services,' with 'ambulatory health care services'
adding thousands of jobs," he explained.
Not this time. "Education and health services" added
"(A)mbulatory health care services" lost "4,100 jobs
and health care los(t) 6,000 jobs." Roberts believes
it's "a first." Maybe Obamacare shares blame, he said.
He calls it "possibly the worst piece of domestic
legislation passed in decades." Indeed so. Previous
It's a giveaway for major providers. It lets them
profit hugely. Especially predatory insurers. It
rations care for growing millions.
It raises costs at the same time. It increasingly
makes coverage unaffordable. It promotes illness, not
Friday's report showed school teacher layoffs. "Aren't
Washington's priorities wonderful," said Roberts. One
trillion dollars in annual QE for Wall Street. "(N)othing
for school teachers."
What's ahead throughout 2014 remains to be seen. For
sure living-wage jobs will be few and far between.
Honest analysts were downbeat on Friday's report.
Pimco CEO Mohamed El-Arian called it "somewhere
between puzzling and worrisome." It gives pause to
alleged economic recovery. It's more fake than real.
Economics Professor Robert Prasch called Friday's
report "disappointing but not surprising." Business
hiring occurs when "current and projected revenues
increase relative to costs," he said.
US wages declined since recovery began. Interest rates
are near zero. Both factors constitute no "barriers to
hiring," said Prasch.
Aggregate demand is to blame, he added. Consumer
expenditures are constrained by over-indebtedness.
Other demand related categories are lackluster.
"Absent anything driving aggregate demand, can we be
surprised to learn that overall spending is failing to
grow at anything like the pace required for a robust
economic expansion," asked Prasch?
Future reports may or may not be better. They won't be
good enough, he believes. He sees nothing driving
economic growth any time soon. Hard times for growing
millions will get harder.
A previous article said the fake unemployment rate
dropped three-tenths of a percent to 6.7%. It's
because hundred of thousands of discouraged workers
stopped seeking jobs.
They can't find them. They're aren't enough around.
Government policy bears full responsibility. Job
creation isn't a federal priority. Pathetically little
is done to help.
Around 155 million workers comprise America's labor
force. In December, a shocking seasonally adjusted
490,000 dropped out. Seasonally unadjusted numbers
Doing so bears witness to deplorable economic
conditions. Poor quality jobs available explain more.
Bush's record was abysmal. Obama's performance is much
Practically nothing about December's report was
encouraging. Labor force participation hit a 37-year
low. For African American men, it was an all-time low.
Major media reporting ignored it.
Indications suggest greater depths coming. Perhaps
2014 will be moment of truth time. Day of reckoning
arrival is long overdue.
Friday's report puts a lie to so-called recovery.
Protracted Main Street Depression conditions explain
things best. Human misery does best of all.
Growing millions are affected. They've been thrown
under the bus and forgotten. America's most
disadvantaged suffer most.
Canada's report was worse. Nearly 46,000 jobs were
lost. Unemployment rose to 7.2%. Perhaps more bad
reports will follow.
So-called recoveries benefitting only privileged
segments of societies aren't sustainable. Ones leaving
growing millions behind suggests eventual trouble.
Force-feeding austerity when vital aid is needed
perhaps assures it. Gerald Celente calls ongoing hard
times "the greatest depression."
"When people lose everything and have nothing left to
lose, they lose it," he says.
Perhaps it's just a matter of time. It may be the only
way to change things. According to Occupy Wall Street,
"the only solution is world revolution." What better
time than now!
Stephen Lendman lives in Chicago. He can be reached
at email@example.com. His new book is
titled "Banker Occupation: Waging Financial War on
Visit his blog site at sjlendman.blogspot.com. Listen
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on the Progressive Radio News Hour on the Progressive
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