Hope and Change Economic Death Watch
The President’s many lofty promises, a la Jimmy Carter, have fallen short.
How short? Painfully so. From Louis Woodhill at Forbes on the recent Bureau of Economic Analysis report:
…falling RBNRFI [Real business nonresidential fixed investment] = recession.
Driven by a capital gains tax cut that took effect on January 1, 1997, RBNRFI grew by 38.6% during the first three years of Clinton’s second presidential term. Over the same period, RGDP [real GDP] increased by 14.3%, and total employment increased by 5.2%.
The comparable numbers for Bush 43’s second term were, RBNRFI: 22.7%; RGDP: 7.8%; total employment: 4.4%.
During the first three years of Obama’s term, his economic performance can be summarized as follows: RBNRFI: -6.6%; RGDP: 1.2%; total employment: -1.8%.
RBNRFI matters, Woodhill foot stomps, because that “is what actually drives the economy” (as opposed to voodoo/doodoo Keynesian economics).
Democrats will say it was the economy we inherited from Bush. Democrat strategists will hope the citizenry has become desensitized to the steady stream of bad news. Republicans will be offer we can do far better. Cynics will say you get the government you deserve.