It’s amazing how little President Obama has learned about economics in his four and a half years in the White House. Growth, incentives, tax reform, tax increases, private investment, the middle class, a second great depression, the sequester—all these issues have one thing in common: Obama doesn’t understand their role in our economy.
Nor does he appear interested in finding out. Members of the now-defunct President’s Council on Jobs and Competitiveness have privately talked about Obama’s economic shallowness. After the 2010 election, he invited four conservative economists to the White House. When former Congressional Budget Office director Douglas Holtz-Eakin broached the subject of the economic cost of Obamacare, the president dismissed it as politics, not economics.
Obama seems oblivious to the feeble recovery his policies have produced since the recession bottomed out in June 2009. The jobless rate is 7.3 percent. But if the millions who’ve dropped out of the job market altogether since Obama took office in January 2009 were counted, the unemployment rate would be 10.8 percent. “In other words, the United States faces a permanently larger pool of jobless Americans,” says the American Enterprise Institute’s James Pethokoukis. [Read more...]