Fox News Correspondent Tries to Slam Obama, Instead Proves Trickle-Down Economics is a Scam

james-rosen-fox-newsWho remembers the rallying cry of John Boehner and his fellow Republicans of, “Where are the jobs?”  You don’t hear that much anymore, do you?

Well, that’s because we’re on the brink of creating nearly 10 million jobs over the last 5 1/2 years.  In fact, in 2014 we’ve seen some of our best job growth since the Clinton administration.

But there is one main problem with a lot of these positive economic numbers under President Obama – wages are down from where they were before the recession.

Which always brings up the talking point by conservatives who claim that we’re creating jobs, but they’re low paying jobs.

Are they right?  To an extent, yes.

But is that really the fault of President Obama’s economy?

Well, James Rosen of Fox News seems to think that it is.  He wrote a very “convincing” column concerning how job growth under President Obama has been misleading because the jobs being created aren’t higher paying jobs.

And I bet you’ll be “shocked” to guess what the supposed “answer” to fixing income stagnation is.  Deregulation and tax cuts, of course!

You know, the exact same kind of economic philosophy we had prior to our worst economic crash in nearly a century.

Rosen details some of the economic information he found (though, let’s face it, economic numbers are often highly subjective based on how you want to look at them) and how billions of dollars are missing from our economy compared to where we were at prior to the Great Recession.

He quotes Dallas-based economist Pamela Villareal who said, “When you look at the sectors of the economy that have grown since, say, 2011, a lot of the growth has occurred in retail, food service, hospitality. These are sectors that typically pay lower wages. … What we really need is more growth in the higher-paying high-tech jobs, and that could be accomplished by reducing some of the regulations and some of the taxes that are discouraging job growth here in the United States.”

You have to pay careful attention to that last part.  Because while Rosen seems to think it supports his stance on Obama’s economy, it really doesn’t.

Job growth isn’t the problem, it’s wage growth.  So, essentially, her comments don’t make much sense.  Besides, taxes are still at historically low levels.  It isn’t as if President Obama raised them all that much.  For a very small percentage of Americans they returned to the levels they were at during the Clinton years.   Many of you might remember those as some of the best economic years in our nation’s history.

Another economist, Jim Diffley, breaks down the economy in a different way.  When talking about income inequality of the last few decades, and during Obama’s presidency, he said, “There’s no particular policies of this administration that drove that change that we can identify.  It tells you about the structure of the economy as it’s evolved over time, over a much longer time than, than Barack Obama has been president. … I often say about presidents and governors that they get too much credit when the economy is good and too much blame when the economy is bad.”

“Over time.”

As in, the last 30+ years when the gap between the top 2 percent and the bottom 98 percent has widened to a historic gap?  Otherwise known as the years of “trickle-down economics.”  When excess wealth at the top was supposed to “trickle down” to the rest of us.  Except it’s done exactly the opposite.

So, here we have James Rosen over at Fox News trying to perpetuate this myth that somehow Obama’s policies have done nothing but kill wage growth, while he actually ends up citing an economist who admits that since the dawn of trickle-down economics income inequality has been a massive problem and nothing he’s seen in Obama’s policy making has had anything to do with wage stagnation.

Because wages have been stagnant for nearly four decades.  

And it’s not as if there’s an issue with wealth or corporate profits in this country.  Corporations are doing fine and the rich are richer than ever before.

So, by the definition of trickle-down economics, we should be experiencing some of our biggest wage growth in years.

But we’re not.

Because trickle-down economics is a scam.  It’s a massive con perpetuated by the rich that somehow convinced millions of middle class and poor Americans that they too could become rich, by giving rich people more money.


Allen Clifton

Allen Clifton is a native Texan who now lives in the Austin area. He has a degree in Political Science from Sam Houston State University. Allen is a co-founder of Forward Progressives and creator of the popular Right Off A Cliff column and Facebook page. Be sure to follow Allen on Twitter and Facebook, and subscribe to his channel on YouTube as well.

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  • buricco

    Isn’t it like beating your head against a concrete wall and hoping at some point it’ll no longer hurt to do so?

    • Tom

      Actually it will stop hurting. But by that point you are either a bloody mess or unconscious. But, that will be the result if we do not get away from Trickle-down.

      • Stephen Barlow

        or both. and it wil STIL be Obama’s fault to those dancing on the titanic tilting deck of the Republican Reaganomic Right.

  • Jim Bean

    Trickle down economics has never worked. The only thing that works is big government run enterprises like the Post Office, Amtrak, and the Veterans Administration.

    • Adam Smith

      Your post indicates a lack of understanding of fundamental economics and how things work.

      How well certain goverment run enterprises perform have nothing to do with the effectiveness of an overall eonomic policy. It’s like listing poorly performing private sector companies and claiming they prove capitalism is a failure. One is not necessarily the result of the other.

      • Tom

        I think he was being sarcastic.

      • Adam Smith

        I thought he was too, but he sucks at that as well.

      • Jim Bean

        You’re the winner.

      • suburbancuurmudgeon

        But you still lose because trickle-down economics NEVER worked. You are free to prove it does….

      • Stephen Barlow

        Sorry IT WORKED EXACTLY AS PLANNED FROM THE BEGINNING!!!

        Think about the GOAL of the scheme…
        Upwards Redistribution of Wealth.

        Couldn’t have gone more “according to plan”.

      • Adam Smith

        Reread the post. I never said it did.

    • Erik Hansen

      I take it you are being sarcastic. The VA was pretty busy prior to Iraq and Afghanistan. We end up waging war for a decade and create a whole new group of veterans in need of care. 4 combat tours equals PTSD (which was essentially directed to be ignore before Obama), then you add 50,000 wounded in need of prosthetics at a cost of $250,000 to $500,000. All with out any additional funding, the VA is failing because of poor planning for the aftermath of war. Perhaps they should triage, combat vets 1st all others wait. So, if you are being sarcastic: Do you really think trickle down or supply side has worked?

      • Jim Bean

        I think every penny spent by the government and the population trickled down from somewhere in the private sector. Almost none of it was generated by the government – the exception being natural resources sold off public lands. Any enterprise that is not for profit is destined to waste, fraud, unenthusiastic or non-existent oversight, and a large measure of apathy among its employees. When its run by government, its even worse because politics can actually drive the bad business decisions. Perfect xample: the post office needs to stop Saturday delivery to help cut their losses but that requires approval of the Senate. The Senate won’t do it because they fear losing votes of those who like their Saturday deliver. Consequently, politics drives the insolvency of the organization.

      • suburbancuurmudgeon

        The Post Office could work if Congress would get the [email protected]&K out of the way. But the GOP wants to kill the postal union.

        Medicare works just fine. So does Social Security, and would work better if the income cap was dropped.

      • Jim Bean

        Medicare’s project insolvency date is about 2035. Social Security’s is about 2024. I agree with you on dropping the income cap, however. But neither Pubs nor Dems will go for it.

      • Stephen Barlow

        Workers pay as much as businesses in taxes.

        Perfect TRUTH. The Post Office would have been Profitable from 2006 til 2013 IF the RED Congress had NOT forced them to fully fund a pension (something NO corporation has EVER had to do). NOt only did they have to fully fund the next decade of retirees, but FULLY FUND THE PENSIONS OF POSTAL WORKERS WHO EVEN BE BORN IN THE NEXT DECADE!

        VEry bad example. Grade: F-

        The need to end
        Saturday delivery
        because it in nonessential. Do you really open bills on Saturday and pay them on Sunday?

        Any businesses open on Saturday that would do either either. (I know clever English hunh?)

      • Jim Bean

        Fully funding the pensions was a political decisions as well, so I would argue I deserve an A. Politics screwed it up and keeps it that way. Anything that can suckle from the public teat has no incentive to do what it takes to be self sustaining. Why should they?

      • Erik Hansen

        A political decision to bust the postal union. They absolutely need to give the post office a freer hand.

      • Jim Bean

        I’m not opposed to busting any/all union(s) in the public sector. Its not collective bargaining when the campaigns of the people who’ve been elected to represent the taxpayer have been funded by the union officials on the side of the table. Its extortion.

      • Erik Hansen

        And it’s not extortion when corporations are allowed unlimited donations?

      • Stephen Barlow

        Corporate extortion is when the board mismanages the business and insists on labor concessions to avoid bankruptcy and closing down plants.

      • Stephen Barlow

        It’s only collective bargaining when…?

      • Erik Hansen

        Then you have little idea on what research the government funded in the 50’s, 60’s, and 70’s. Right you are one of those that thinks the “free market” is a cure for everything. The most wasteful, unproductive program we have is the military. They do nothing constructive only destructive, and have increased terrorists recruiting.

      • Jim Bean

        The military is not free market. Its government run. You think we should do away with it altogether? Want to make it efficient and productive? Privatize it.

      • Erik Hansen

        No, but the military can be much smaller. We do not need 11 Carrier Groups. We destablize the world, Iraq is a prime example. My point is the Republicans are bad at running government and they do everything they can to make problems.

      • Jim Bean

        WE – destabilize the world? Erik, if it weren’t for the military, you’d either be speaking Arabic or Russian.

      • Erik Hansen

        Bull shit

      • Erik Hansen

        You have little clue about the problems of USPS. For one the republican congress, under Bush, required they prefunding of future benefits (4 billion per year). Cutting Saturday delivery does little, what is needed is closing post office locations, however the constitution mandates the USPS, and they must provide the service to every remote US address. In fact, they handle 30% of Fedex parcels. You are right congress hinders them, because they won’t let them do what they need to do. For what they do it is a bargain and it is meant to be a public service. Pharma is an example of the evils of for profit and is the prime reason why American pay double for health care.

      • Jim Bean

        I’d rather have my mail come from a private service committed to operating efficiently on their earnings than from a public service with no concern for efficiency because it operates from the bottomless pockets of taxpayers.

      • Autismmomx4

        No tax dollars support the post office.

      • Jim Bean

        You think Obama pulls the subsidies to keep it running from the sky?

      • Stephen Barlow

        During 5 years of immoral war, Dubya, Rummy and ‘the pit of hell’ couldn’t have INVESTED in EXPANDING the VA to meet the VERY mathematically predictable needs of these Vets?

        Without Beohner putting a Vets bill on the floor for a vote, or McTurtle not filibustering a VEts bill…. Obama had no money to solve the problem.

      • Erik Hansen

        Right they thought it would be over in weeks. It is not rocket science to assume when you go to war you are going to increase the medical needs of vets. The VA was already pretty busy. It gets back to the fact Bush did not even try to pay for his spending. Medicare D (changed by executive order), two wars, department of homeland security, the militarization of the police. Bush did far more harm than Obama.

      • Stephen Barlow

        But even three years and no end in sight PLUS no exit strategy on the table (or in the closet even) they couldn’t muster preparations for MORE WOUNDED.

      • Autismmomx4

        Because they don’t give a crap about the vets. Expect as a prop or a yellow ribbon magnet.

    • J.D.

      Actually it has worked, for the rich that is. It has worked wonders for them.

    • Stephen Barlow

      hahaha I recognized Trickle Down as a Ponzi Scheme from the beginning. BEcause when Dubya ran out of markers to write, YOU were left without a check.

      • Jim Bean

        What do think the source of wealth is? Where does something that be exchanged for cash originate?

      • Stephen Barlow

        under your skirt.

    • Autismmomx4

      The government does not run the post office. The post office problems result form Congress over regulation their pension program to a degree that NO other public or private enterprise has. Amtrak is private. The VA is inadequately funded and not equipped to handle the influx of vets sue to our 2 recent wars started on lies by the GOP. Congress holds the checkbook and cut the funds to the VA.

      If Congress stopped trying to kill the post office, it would be just fine. No tax dollars support the post office. If Congress cared about our vets, they woudl adequately fund the VA. Te VA funciotns quite well wehn it is adequately funded. In fact, many our our reprsentives thisnk the medical benefits are too generous and want to cut them.

      • Jim Bean

        Over the past four years Amtrak has received 4.4 billion in Federal aid..

      • Lumpy

        again… deflection is your strongest strategy for debate. Austinmomx4 gave you a thoughtful response and you tossed off a non-sequitor.

        how about you actually read and respond to what she actual said? If you’re so interested in “learning from debating with people with whom you do not agree” then why do you talk past good arguments?

      • Jim Bean

        A good argument requires accuracy when presenting evidence. That was absent in this one.

  • cheetohman

    Another GREAT article, Mr Clifton.

    “Because wages have been stagnate for nearly four decades. ”

    Also, today I learned the word STAGNATE is similar to, but not the same as, STAGNANT.

    Thanks. Keep ’em coming.

    • Stephen Barlow

      Such a tiny hardon over such a meaningless point.

  • sherry06053

    They forgot to add an invasion of another country to their scenario, which inflated our deficit to a point that would make a middle class family feel like they are never going to get out of the hole that they are in.

  • Soothsayer123

    Employers could lower everyone’s pay to a dollar a day and conservatives would still defend them and tell others to be grateful they don’t earn 50 cents a day.

    • J.D.

      The scary thing is that there are Repubs who a heavily promoting the elimination of the minimum wage which would lead to you proposed scenario.

      • Stephen Barlow

        And if YOIU don’t get everyone you know out to vote, they could do it within 6 months. Just stay home and let them win control of both halves of Congress…

      • J.D.

        Hell no, I’m voting and as an registered Independent, there is not one Republican that is earning my vote this fall.

      • Stephen Barlow

        Good for you! AND everyone else. Take your family and neighbors with you.

  • Bill Hildreth

    Trickle down economics is a lie.The capitalist system is driven by demand and supply. If workers have money,they buy things which creates more jobs to increase the supply thereby creating more jobs to meet demand. This also leads to a broader tax base allowing everyone’s individual taxes to decrease. If the workers don’t make enough to buy necessities there is no demand for the luxuries that drive the economy.

  • fairness_rules

    The electorate isn’t very intelligent. That is a real problem! However, I don’t know what to do about it.

    • suburbancuurmudgeon

      SOME of the electorate isn’t very intelligent and resides in the Rural South.

      • Stephen Barlow

        The rest is in Arizona and the Midwest.

    • Stephen Barlow

      genocide of all those who vote RED?

  • Stephen Barlow

    I love how Obama is REPONSIBLE FOR REAGANOMICS from the very beginning.

  • matilda9

    Kansas.