Pesky facts about five years with Obama

When one looks at objective data about the last five years since Barack Obama became our president, we see positive changes in our economy. Even though the prevailing media narrative too often emphasizes the negative, the data tell a different story.  

When Obama became president, he faced an economic situation harking back to the 1930s.  The situation has now changed for the better. Let’s look at some facts comparing data when Obama took office in January 2009 to the same data as of June 2014.

One indicator of economic improvement is the stock market. For example, in 2009 the Dow Jones Industrial Average fell from 7,949 in January to an even lower level, 6,547 in March. The upward climb these last five years is remarkable. The Dow continues to break one record after another. It is now consistently over 16,000! 

While the national unemployment rate is still not what we would like, it is considerably better than before and continues to trend downward — from 7.8 percent in 2009 to 6.1 percent as of July 1014. A positive trend has also occurred in the Flathead Valley with the jobless rate (as reported in the June 21 Daily Inter Lake) falling from 11.2 percent in May 2011 to 5.6 percent in April 2014. More people are working locally and nationally!

The gross domestic product, a measure of the USA’s output of goods and services, is one of the primary indicators used to gauge the health of our country’s economy. The Department of Commerce gathers data for this index from sources on personal consumption, government expenditures, private investment, inventory growth, and the trade balance to come up with a GDP figure. According to the U.S. Bureau of Economic Analysis, the year Obama took office the annualized GDP inherited from President Bush was -0.98 percent (yes, a negative 0.98!). Under Obama’s stewardship the GDP has trended upward. As of March 2014, the GDP was a positive 3.72 percent.  

With so much press given to the federal deficit, I am intrigued by some very positive changes.  According to the Congressional Budget Office (May 2014), the deficit has dropped to 2.8 percent of GDP this year. As a percent of the GDP this is the lowest deficit since 2007. As documented in the Congressional Budget Office data, it is the largest five-year reduction in red ink since World War II, over 70 years ago.  

Another indicator has to do with the Consumer Confidence Index. The Consumer Confidence Index measures the degree of optimism about the economy. Each month the Consumer Confidence Board surveys 5,000 American households asking participants for their current opinions about business conditions, current and future employment conditions, and family income. At the beginning of Obama’s term in 2009, the Consumer Confidence Index was at an all time low of 37.7. It now stands at 83. This spring consumer confidence climbed to the highest level in six years, indicating improved optimism about the economy’s prospects. These data indicate consumers have a more positive outlook about the labor market and see business conditions improving.  

According to the U.S. Department of Commerce Census Bureau, private home construction has more than doubled these last five years — from 490,000 private home starts in January 2009 to 1,072,000 new home starts in May of this year. These data are also reflected locally. I see new homes cropping up everywhere in our valley.  What a difference compared to just a few years ago!  

Many objective indicators converge on the conclusion that our economy is doing far better than it was five years ago. Even though Obama’s stimulus package seemed inadequate at the time, and he could have offered more relief to distressed homeowners, his support of the auto and banking industries along with other initiatives helped turn the economy in the right direction. So, let’s stop and appreciate the positive changes happening locally and nationally. Perhaps it’s time to spread some truth about Obama’s accomplishments, rather than listening to factless distortions of talk radio and television hosts. 

Oh, these pesky facts! Thank you, Mr. President.