The Obama Economy and Obamacare are both performing very well

September 2014 jobs report

The jobs numbers from September were released on Friday and the news was very good.  The U.S. economy created 248,000 new jobs and the unemployment rate dropped to 5-9%; the lowest since 2008.  This is a strong indication the economy is on the rebound and that employers are reacting to the demand in the market.  This is very good news.  The Affordable Care Act, aka “Obamacare”, celebrated its first birthday on Wednesday and in the one year it has been in full effect, over 10 million Americans have enrolled and now have access to affordable healthcare.  The Obama Economy and Obamacare are both performing very well. 

When the Obama Administration began, the economy was hemorrhaging 800,000 a month; the financial markets were trading at record lows; just about every major bank

in the country was teetering on going under; the Dow Jones was in the tank; American International Group (AIG)  - the top insurance policy writer in the world - and all the top investment banks in the world Goldman Sachs, Morgan Stanley, Merrill Lynch and Lehman Brothers  were in serious trouble; the auto industry was on the brink of extinction and homeowners were losing their homes in record numbers to due be steered into shady subprime mortgage loans that many homeowners simply could not afford.  Not to mention the two wars that was costing the country approximately $12 billion a month the Bush Administration got the country into – one of those wars, the one in Iraq, the country was LIED in to.  In short, things were BAD. 

The first piece of business of the Obama Administration was to bolster and sustain the Emergency Economic Stabilization Act of 2008, financial bailout to the banks and investment firms that was initiated during the Bush Administration.  That’s RIGHT – the Bush Administration initiated the bank bailouts.  The Republicans, who LOVE to rewrite history, led many to believe the Obama Administration initiated the bailouts.  The very people who opposed the bailouts when Barack Obama became president were the SAME people who were deadly SILENT when the president they blindly supported in everything initiated the bailouts.  Regardless of which administration did, it was a good strategy.  In fact, it was the ONLY strategy.  If the banks had gone insolvent, the world economy would have gone into an abyss that would have taken years to recover from.  It would have been a global economic cataclysm.  President Obama COULDN’T and DIDN”T let that happen. 

Next, was American Recovery and Reinvestment Act of 2009  – more commonly referred to as the Stimulus.  With the banks and investment firms on the verge of extinction and Americans losing jobs in record numbers, there was no money being circulated within the economy.  The idea was for the government to “stimulate” the economy with an infuse of cash to encourage growth and stability.  A large part of the Stimulus plan was a jobs package that would have repaired the country’s aging and crumbling infrastructure.  This would have created millions of jobs and that, obviously, would have led to consumer spending by those newly employed Americans.  “Dr. No”, aka the Republicans in Congress, fought the stimulus tooth and nail.  Not because the stimulus was a bad idea, but because their sole agenda was to OBSTRUCT and OPPOSE Barack Obama at ANY and EVERY opportunity.  The Republicans insisted the Stimulus include additional tax cuts, which would have diverted money directly from consumers and into the coffers of corporations and individuals who were already wealthy.  President Obama, in an effort to have bi-partisan participation in righting the economy, acquiesced to the Republican additional tax cut demands and the Republicans STILL voted against it.  All but three of the 37 Republicans in the Senate at the time voted in favor of the American Recovery and Reinvestment Act of 2009.  The Stimulus was affective nevertheless.  Between 2009 and 2012, it either saved or created 6.5 million jobs. 

President Obama then aimed his attention at the auto industry in America.  General Motors and Chrysler were inches away from going under.  Auto sales had fallen off the table because people were unemployed and couldn’t buy cars and those who were employed hung on to their cars longer.  The auto industry was once the backbone of the American economy and had the auto industry had collapsed it would have been disastrous to the nation’s economy and to the nation’s psyche.  The government not bailing out General Motors and Chrysler was not an option.  Although the government realized a net loss of $12 billion, according to the Center for Automotive Research, there were tangible and intangible gains for the country in bailing out General Motors and Chrysler.  In a December 2013 story in The Week (The U.S. auto bailout is officially over. Here's what America lost and gained.), the C.A.R. put of the following numbers:

• 1.88 million: Job losses in 2009-2010 if only GM had gone under.
• 4.15 million: Job losses in 2009-2010 if the whole U.S. auto industry had shut down.
• $39.4 billion: The hit to federal and state governments, from lost tax revenue and jobless benefit payments, if just GM went under.
• $105.3 billion: The hit to federal and state governments if the whole auto industry had collapsed.

Subtract the net loss from what was saved, the country saved $95 billion.  Not too shabby. 

The next crucial step in the saving the economy from complete collapse was to attack

the foreclosure crisis.  Millions of homeowners were snookered in subprime mortgage loans.  Millions were done in by ARM (Adjustable Rate Mortgage) loans where the payments and terms were fixed for 2 to 3 years and then the loans would reset – or adjust – and interest rates determined by the volatile market rose upward.  Mortgage payments went through the roof.  Coupled with the massive loss of jobs and mortgage payments that doubled, millions of homeowners could no longer afford their mortgage payments.  Millions of homeowners lost their homes due to foreclosure.  This not only displaced homeowners and their families from their homes, but it affected homeowners who COULD make their mortgage payments.  Because of the number of vacant homes in the country, real estate values plunged for all homeowners and as a result, many homeowners who were able to make their mortgage payments found themselves upside down – owing the bank more than the house was worth.  The Obama Administration introduced the Home Affordable Modification Program (HAMP) and Home Affordable Refinance Program (HARP) plans.  HAMP modified the terms of the original loan for homeowners who were behind on their mortgage payments and threatened with foreclosure.  Under this plan homeowners could have their payments reduced, the term of the loan extended and in some case, the balance reduced and in some cases all three remedies.  HARP was designed to assist homeowners who were current on their mortgage payments, but couldn't refinance their mortgages due to owing more than what existing home values determined their homes were worth.  Homeowners in this situation simply were walking away from their homes because they realized they would never recover the value their homes once had.  These programs have been successful. 

Remember the Town Hall meetings in 2009 during the Affordable Care Act debate?  They were downright ugly. 

It was quite amazing to see so many Americans fight so hard and display such raw emotion in order to prevent 40 million other Americans from having access to affordable health care.  The Republicans, yet again, were determined to obstruct this legislation by any means necessary.  What was interesting about this obstruction was the Affordable Care Act pretty much was a copy of a free market driven, competition among insurance providers health plan hatched by the Heritage Foundation, one of the most conservative think tanks in America.  That’s why amidst all the vitriol and obstruction, the Republicans never produced an alternative to “Obamacare”.  “Obamacare” was THEIR plan to begin with.  Progressives favored a single payer, Medicare for all plan.  The Republicans basically told the country over and over and over again that a plan that would give 40 million fellow Americans access to affordable health care was an attack on personal FREEDOM.  “Obamacare” wouldn’t CURE cancer.  It WAS cancer.  Michele Bachman described the affect “Obamacare” would have on the country in the simplest terms as she all but begged for the law to be repealed:

 



There you have it.  In Michele Bachman’s eyes, “Obamacare” would kill EVERYBODY and EVERYTHING.   (By the way, THAT woman is an IMBECILE)  The Republicans said it would kill jobs.  They said it was “socialized health care”.  They said “Obamacare” would redirect the flow of the mighty Mississippi River.  They said the Earth would rotate from right to left instead of left to right.  Never mind that 40 million fellow Americans would have access to something they didn’t have – affordable health care.  The Republicans went on a full frontal JIHAD when it came to “Obamacare”.  Not ONE Republican in the Senate at the time voted for the Affordable Care Act.  Since the law was signed by President Obama, the Republicans have voted over 50 times to repeal “Obamacare”.  When Mitt Romney, the biggest political charlatan to come along since – well, George W. Bush – was the nominee for the Republicans in the 2012 presidential election, he was forced to run away from HIS signature legislation as governor of Massachusetts which was universal health care for all citizens of that state.  (Insert the plaintiff) filed a lawsuit against “Obamacare” questioning the Constitutionality of the law.  The suit made its way to the Supreme Court where, in a 5-4 surprise decision with the deciding vote cast by Chief Justice John Roberts, the law was ruled Constitutional.  That still was not good enough for the Republicans.  Led by Texas Senator Ted Cruz, a Canadian, the Republicans shut the government down in 2013 in an effort to coerce President Obama to repeal his signature legislative victory.  The shutdown lasted 16 days and the stated objective was not even considered by President Obama.  CURSES … foiled AGAIN. 

Considering that over 10 million Americans have enrolled and received health insurance under the Affordable Care Act as of this writing and considering that 248,000 Americans who were unemployed a little over 30 days ago now have jobs and unemployment is now at 5.9% - the lowest since July 2008 - and that September marked the 55 straight month of positive job growth, it definitely appears the economy seems to be heading in the right direction.  Just imagine how much further the country would be if the Republicans had not blocked President Obama’s jobs bill that was introduced in 2011, the American Jobs Act, that would have rebuilt the infrastructure and created 1,600,000 jobs.  Just imagine how many more Americans would have health care if 23 states had not outright refused to establish state exchanges that would have implemented “Obamacare”.  Over 5.000.000 Americans are being denied access to health care by the governors and legislatures in those 23 states due to political reasons only.  Hopefully, those Americans will hold those elected officials accountable come Election Day.  One can only hope, right?  Despite all the obstruction, hatred and vitriol, one simple fact can’t be denied:

The Obama Economy and Obamacare are both performing very well. 

Peace, peace.

Craig Riggins

Email: therigginsreport517@gmail.com

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