Obama Says US Economy Saved from 'catastrophe'

The Facts Say Otherwise

President Barack Obama said Friday his administration had saved the US economy from catastrophe and the worst of the recession may be over, after a surprise drop in the unemployment rate.

"This morning we received additional signs that the worst may be behind us," said Obama in remarks in the White House Rose Garden after new figures showed the jobless rate slipped to a better than expected 9.4 percent in July.

Obama says US economy saved from 'catastrophe'

Oh, has he now? Well, I am relieved to know that. We are all rescued. I would believe that if it were not a few incontinent facts.

Fact one:: According to a story from the Associated Press, this rescued economy has small problem with federal tax revenues.

"Tax receipts are on pace to drop 18 percent this year, the biggest single-year decline since the Great Depression, while the federal deficit balloons to a record $1.8 trillion.

"Other figures in an Associated Press analysis underscore the recession's impact: Individual income tax receipts are down 22 percent from a year ago. Corporate income taxes are down 57 percent. Social Security tax receipts could drop for only the second time since 1940, and Medicare taxes are on pace to drop for only the third time ever.

"The last time the government's revenues were this bleak, the year was 1932 in the midst of the Depression.

"'Our tax system is already inadequate to support the promises our government has made," said Eugene Steuerle, a former Treasury Department official in the Reagan administration who is now vice president of the Peter G. Peterson Foundation.This just adds to the problem.'"



Federal tax revenues plummeting

What is happening here? Why are the numbers falling? People without jobs do not pay much income tax. Corporate taxes are falling because corporations are making less money. Guess what happens when Corporations make less money. They don't hire people.

Fear not! Obama has rescued the economy. Or has he . . .?