Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Blacks Do Poorly Under Obama's Stimulus Policies
It is generally believed that blacks have fared well under Obama but the truth is that Obama’s policies have made blacks worse off. A black scholar, Dr. Reginald Clark, points out that every racial group, except the blacks, has benefitted, however moderately, since 2009. He writes that “since 2009 Blacks are the only group that has taken a definitive step BACKWARDS since then.” This continues to be true as the following table shows:
Census Release, May 13, 2013
Unemployment Rates Apr. 2012 Apr. 2013
Total 16 and over 8.1 7.5
Teenagers 24.9 24.1
White 7.4 6.7
Black 13.1 13.2
Asian 5.2 5.1
Hispanic 10.3 9.0
Obama’s economic policies have resulted in no increase in manufacturing. He has increased demand by subsidizing wind and solar plants in areas where few blacks live. Excessive government regulation and high taxes on unsubsidized industries have induced many American manufacturers to outsource the production of their products. Many leading manufacturers have more employees abroad than they have here. A recent example is Apple Corp. which paid no U.S. taxes at all. The Environment Protection Agency has issued regulations that punishes enterprises that produce and consume fossil fuels. Obama’s promotion of foolish policies to prevent global warming, and his anti-free market policies have reduced job opportunities. American manufacturing has been stagnating. They were in addition exempted from income taxes on their profits.
These policies have been of primary benefit to the wealthy. Al Gore became a multimillionaire promoting wind and solar projects. Huge subsidies were paid to construct wind and solar energy facilities and utilities were forced to buy and pay high prices for the energy they produced. Needless to say these costs were passed on to households and corporations. Instead of reducing wasteful expenditures, Obama chose to raise taxes on interest and capital gains and increased the rates of the individual income tax. Needless to say, manufacturers took notice.
Auto manufacturers were subsidized to promote high priced hybrid and electric autos and the buyers of those expensive vehicles were subsidized. Billions were paid to homeowners for energy-saving home improvements. Auto buyers were paid for the “junkers” they traded in. But the federal government required them to be recycled as junk and in effect prevented their being sold as used cars. This had the effect of raising used car prices. This raised the costs of transportation of low-income families. The middle and upper classes generally buy new cars or high-priced used cars.
The billions wasted ought to have gone to create new permanent manufacturing jobs. These and more foolish subsidies resulted in jobs but none that are permanent. The subsidies created a few jobs in wind and solar plants in areas inhabited by few blacks and in the auto and home repair industries but none that would outlast the subsidies. As a result, few job opportunities for blacks were created.
The employment opportunities for teen-age blacks were diminished by Obama’s raising the minimum wage. How bad the situation was for teen-age Blacks is described in an article written by Bonnie Kavoussi (Black Teen Unemployment Rate Rises to 47 Percent in February) in the Huffington Post on March 8:
President Obama isn’t helping black people economically.
Comment by Frank, 6/19/2013:
Why report on the legacy of blacks under Obama policies. They don't care so why should we.
Last 100 Years
Real Estate Taxation
Journal of Economic Literature:
Atlantic Economic Journal: