Obama: Enemy of the Working Class
The left and mainstream media are sticking to an increasingly annoying narrative – Trump is the human embodiment of evil and Obama represented happier times.
The left (the people who advocate for economic equality) paint Trump as the representative of the 1% whilst Obama was a hero of the working people.
If we take the definition of working class as someone who doesn’t own their house, then Obama was one of the worst things to ever happen to working class Americans.
Obama’s economic recovery program – Quantitative Easing – injected $3.9 Trillion into the American economy. This money wasn’t borrowed or raised through taxes. The money wasn’t pegged to any commodity and it didn’t represent any real value. This money was instead printed from thin air.
When money enters an economy and it doesn’t represent any growth, then every other commodity rises in price in order to accommodate the new money. This can be seen best by looking at the prices of houses and shares.
In 2007, at the start of the great recession, many people started defaulting on their mortgages. This forced banks to foreclose which increased supply and contracted demand.
Market capitalism then worked its magic and contracted house prices back to their natural levels. Houses were no longer inflated. Without central intervention, this would’ve been the end of the story
But some people are more concerned with their careers than the long term future of the country
Obama needed house prices to rise in order to portray that he has some clue of what he is doing.
Ben Bernanke, former chairman of the Federal Reserve, took the politically convenient action and printed $3.9 trillion over 6 years in order to recapitalise the banks.
This graph shows the damage that Obama’s fiscal policies have caused.
The graph doesn’t follow the laws of capitalism. The amount of supply has increased every year since the Great Recession.
Prices should then fall accordingly, however, prices aren’t falling or even stagnating, they have increased passed the level of a previous bubble.
These statistics should alarm any house owner as the market is in another bubble.
Obama has inflated the housing market to a point that it is extremely difficult to enter.
Many middle class liberals cheer on Obama’s social record as well his drive to reduce economic equality. There is a reason that so many working class Democrats abandoned Hillary Clinton in 2016; she offered more of the same.
Many liberals believe that Trump tricked working class Americans into voting for him, without even considering that Obama did a lot of damage.
* Stuart Alister is a 21 year old libertarian from the United Kingdom. He studied American political economy for 3 years an Queen’s University Belfast. His dissertation was called “Obama’s False Recovery and Quantitative Easing: The ‘Good,’ the Bad and the Ugly.” His areas of interest are quantitative easing, inflation, public debt and the minimum wage.
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