Obama's Inheritance

Since he assumed the nation's highest political office, President Obama has spent an inordinate amount of time repeating one word over and over in a futile attempt to explain his own ineptness.  His trademark language is that he "inherited" such a mess from his predecessor that he cannot be blamed for today's dreary economic condition.

Obama's recurrent theme is that his policies have put the country on the right track to recovery after inheriting (that word again!) an economy perched on the brink of disaster when he was sworn in January, 2009.  There is only one problem with the president's assertion.  The facts don't support his claims.

In truth, by any measurement the country is worst off with Obama at the helm than it was before his ascension to 1600 Pennsylvania Avenue.

For example, when the president came into office unemployment stood at 7.7 percent, according to the Bureau of Labor.  The agency's most recent data puts current unemployment at 9.1 percent.  Most economists agree even that figure underestimates the job situation because the bureau has stopped counting long term unemployed in the data. More than one economist has pegged the "real" unemployment rate at a staggering 22.1 percent, based on the bureau's report for May.

Home foreclosures are another leading indicator of economic recovery.  At the end of 2008, 1.84 percent of all U.S. housing units were either in foreclosure or had been notified of impending foreclosure.  The latest figures indicate that 4.14 percent of home mortgages are in the foreclosure process.  Mortgage firms report that number will soon start growing again because many foreclosure proceedings have been put on hold while the industry sorts out litigation over requirements for notification.  The Home Buying Institute estimates there is a backlog of 2.2 million homes in some stage of foreclosure.  Therefore, foreclosures are expected to spike for the remainder of the year. 

Likewise, home prices have tanked since the President relocated to the White House. The Federal Housing Finance Agency reported in June that the home price index fell faster than at any time since 2008.  That follows a 5.5 percent decline in the past year.  As prices have declined, more consumers are sitting with homes that are valued at less than what they owe on their mortgage, heightening the prospect of more foreclosures.  Since 2006, the Home Buying Institute reports that home prices in the United States have dropped 33 percent, the largest decline in the country's history. 

When Obama was inaugurated, the nation's debt stood at $10.626 trillion.  In two years, the president used the Democratic majority in Congress to add $5.9 trillion in new debt, the largest increase in the nation's history.  With the debt level now within an eyelash of the country's official ceiling of $14.2 trillion, the U.S. owes more money than it ever has. 

The U.S. dollar has dipped dramatically since Obama assumed the presidency.  In his first year in office, the dollar lost 22 percent of its value against the European currency.  This year the dollar's value has suffered another setback, dropping 11 percent against the Euro, despite a mounting financial crisis in Greece, an European Union member.  The declining value of the dollar has impacted consumers in many ways, most notably the price of a gallon of gasoline.  The U.S. purchases oil from OPEC countries based on the dollar's exchange rate.  As the dollar declines, it means more money is needed to buy the same amount of oil.  By one estimate, the weakened dollar has added 56.5  cents to the cost of every gallon of gasoline sold in the U.S.

The president can complain all he likes about what a lousy hand he was dealt when he took office.  It won't matter to voters when they trek to the polls next year.  Obama was elected precisely because the electorate felt he was best equipped to turn around a faltering economy that quickly nosedived  into a full blown recession.

Obama should be judged on the country's current economic condition, not on what he inherited.  He promised hope and change.  The country has yet to experience either under his leadership; instead he has spent future generations' inheritance on failed economic programs.