Now, ‘the Obama economy’ doesn’t sound like cursing
When President Obama moved into the White House in 2009, he inherited a financial crisis long in the making. Yet he was expected to quickly fix everything from high unemployment to a troubled stock market. A few years later, as the economy was slowly improving, some politicians warned of an economic nose dive if the president was re-elected.
That didn’t happen. And though the economy has made significant improvements in critical areas during the past six years, those same politicians would never dream of acknowledging them. So let’s take an honest look at what has happened.
In March 2009, the Dow Jones Industrial Average hit a 12-year low of about 6,500. Recently it has been hovering around 17,000. Americans’ retirement and college savings accounts have rebounded. Home values have increased. Though many Americans need better-paying jobs, the unemployment rate has decreased significantly. People without health insurance can actually buy it on their own now.
And what about the federal bailout of the banking system that some politicians seem to forget was necessary to rescue the country’s financial system and was prompted by President George W. Bush? According to an August report to Congress, a total of $424.8 billion has been disbursed under the TARP plan, while collections and proceeds to the government totaled $439.8 billion.
In fact, banks — largely to blame for lending practices contributing to the country’s financial crisis — have done exceptionally well in the so-called “Obama economy.”
This month the Wall Street Journal reported U.S. banks posted $40.24 billion in net income during the second quarter this year. That is the industry’s second-highest profit total in at least 23 years. That’s right, 23 years. Banks are lending money to companies and individuals at the fastest pace since the financial crisis.
That’s exceptional news, considering banking executives continue to complain about the cost and inconvenience of government regulations. Apparently those weren’t so burdensome and profit-killing after all.3
— The Des Moines (Iowa) Register