Barack Obama deserves all the credit for the growing economy he handed over to Mr. Trump.
I did not read the original op-ed in the WSJ, figured it was just the same vile. But I like this letter in response:
Here are some of the Obama-era headwinds Mr. Ferrara overlooks: 1) U.S. export demand was impaired by persistent weakness in the European economy. 2) A slump in oil-industry investment and employment worked against a steady job recovery. Even so, the unemployment rate fell below 5% by 2015. 3) The financial crisis President Obama faced was highly extraordinary in depth and scope and virtually assured a longer-than-usual deleveraging time. 4) The housing crash left many despairing homeowners underwater, with lingering effect on their confidence and buying power. 5) Of at least equally great impact was the virtual vow by GOP congressmen to block all Obama proposals, including any new stimulus measures.
Mr. Ferrara alleges that, according to “Obama apologists,” it was impossible for the economy to grow more than 2%. That’s another misstatement. Many economists (including this writer) believed the rate of growth could have been higher, especially if Congress passed the $1 trillion infrastructure plan Donald Trump touted later; that infrastructure spending was especially appropriate when employment was still low. But, at that time, such stimulus was anathema to Republicans. Now, in order to cut taxes and raise military outlays, the Trump GOP has embraced huge deficit spending with blithe disregard as to what the consequences of a growing debt bomb may be in the long run.
Irwin Shishko
Delray Beach, Fla.
https://www.wsj.com/articles/present-economic-success-has-many-fathers-1537211352 (paid subscription)
= new reply since forum marked as read
