Investor-class dead heat

By LAWRENCE KUDLOW While President Obama is out on the campaign trail talking about how bad things were four years ago, and how we have to go “forward” to his second term to see just how great things are going to be in the next four years, the biggest problem he’s got is the here and now. Real gross domestic product in the second quarter stalled at 2.2 percent. There were a paltry 115,000 new jobs in April. The labor force shrank by 342,000 for the month, and the 63.6 percent labor-force participation rate is now the lowest since 1981. There are roughly 23 million people classified as either unemployed, underemployed or no longer looking. And median household income has dropped by $4,300 during Obama’s time in office. This all adds up to a tough indictment of the administration’s economic policies. In terms of the president’s signature achievements, the taxes, regulations, and mandates attached to Obamacare have been job-hiring inhibitors for both large and small businesses. And the $850 billion stimulus package simply has not worked. Obama doesn’t even mention these in his campaign speeches. Notable economists are having an easy time assigning blame. Stanford economist John Taylor argues that every dollar taken from the private sector and channeled to the public sector for government spending produces a GDP multiplier of less than one. Thus, the economy has gotten...

Read More