All in less than 4 Short Years

A former manager of mine, Norm Tarowsky, recently wrote the following:

Is America Better Off Today than it was 4 Years Ago?

In order to answer this question we have to first look at where we were four years ago:

1. We were on the verge of a great depression, the financial markets were in collapse and no one was lending.
   
   
2. We were losing jobs at the rate of around 700,000 a month (over 4 million jobs were lost during late 2008 and early 2009).
   
   
3. The housing market had collapsed, there was no new construction and almost one in eight Homes were in foreclosure or under water (worth less than the mortgage).
   
   
4. The stock market dropped and was sitting at around the 8,000 level.
   
   
5. Nearly 50 million Americans were without health insurance coverage and the cost of healthcare was increasing at three times the inflation rate.
   
   
6. We were actively engaged in two wars that cost us over 5,000 American lives, 25,000 wounded and tens of thousands of civilians’ deaths and trillions of dollars in cost to the American taxpayers.
   
   
7. The American auto industry was on the verge of collapse and another one to two million jobs were hanging by a thread.

So where are we today less than just 4 years later?

1. The financial industry is healthy, the banks are lending again, and a bill has passed Congress (Dodd-Frank) that addresses many of the issues that allowed the collapse in the first place. The banks have repaid the money they were loaned (with interest) and we averted a great depression!
   
   
2. Thanks to the economic stimulus plan (and contrary to what the Republicans say) about 4 million jobs were created and we have had over 30 straight months of positive private sector job growth. This obviously is not enough, but recognize that the Republicans in Congress have blocked every attempt by Obama and the Democrats to pass legislation that would improve the situation.
   
   
3. The housing market is beginning to rebound, prices are starting to increase and the number of foreclosures is considerably down. Congress passed a bill that made it easier for people to stay in their homes and the Fed has acted using its monetary policy and interest rates are the lowest they have ever been, making it easier to finance and get loans; meanwhile the inflation rate is very low and under control.
   
   
4. The stock market has almost entirely recovered since Obama took office and is presently around 13,500 making most people with IRA’s / 401K’s feel a lot better off than they did four years ago and corporations back to business as usual.
   
   
5. With Obama-care now starting to take hold we now have a system that will reduce the number of uninsured in this country. This new law also prevents insurance companies from denying coverage for pre-existing conditions, from putting lifetime caps and allows children to stay on their parent’s plans to the age of 26 and many other features that will roll out over the coming years. The C.B.O. (non-partisan congressional budget office) says this will reduce the deficit going into the future.
   
   
6. We have now withdrawn just about all of our forces from Iraq, and are in the process of reducing our footprint in Afghanistan with the goal to have all of our fighting forces out by 2014.
   
   
7. The American auto industry (saved by Obama while Romney would have let it go bankrupt) is now doing very well and paid back a majority of the loans. Since about one in eight jobs are associated with the transportation industry (from dealers, suppliers, factories, service stations etc.) it is critical we have a strong and healthy American Auto Industry.

We are much better off today than we were four years ago; the hole we were in was enormous and we have come a long way; we can’t afford to go back to the Republican policies that created the problems in the first place!

It is amazing to see how much was actually been accomplished by the Obama administration these last 4 short years despite the most hostile and inept Republican congress in history bent on bring him down, the largest economic collapse since the great depression, a disastrous war started by Bush, and a world economy in collapse.  Few presidents in history have ever faced so many huge adversities when first stepping into office.

But big business and the rich 1% are now flourishing as never before and the stock market has almost totally recovered.  Though unemployment is still at unacceptable levels it is infinitely better than 4 years ago.  Any financial expert will tell you that 4 years is simply too short a time for an economic collapse of the magnitude experienced that at the beginning of Obama’s presidency to complete recovery.  There is still much work to be done but I see what recovery that so far happened in just the last 4 short years as nothing short of amazing.  Obama should be praised instead of vilified for this amazing feat.  He did not do it all along but it was his leadership and determination that stimulated such a rapid recovery.  I doubt if a Republican president could have done better and might have done far worst.

The deficit still looms over the horizon but what people care most about now are jobs.  Jobs will bring in more tax revenues, further stimulate the economy, and bring down the deficit.  I see most of Obama’s actions as being very appropriate for the times.  Desperate times require desperate measures.  I feel history will view Obama as one of the greater presidents despite what the Tea Party and Republicans might think.