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July 09, 2020

The Biden “Recovery” – The Worst Since The Great Depression

Key Takeaways:

  • The Biden-led “recovery” was the slowest since the Great Depression

    • The Biden economy failed to bring back American manufacturing jobs, losing 192,000 manufacturing jobs on his watch 

    • Wage growth was stagnant, averaging just 2.2 percent

    • The Biden “recovery” squeezed the middle class, leading to the middle class falling out of the majority of Americans for the first time in four decades

    • By 2016 – eight years after the recession – 57 percent of Americans believed the U.S. economy was “getting worse

    • Under Biden, 93 percent of U.S. counties failed to fully recover from the Great Recession

    • 14 million Americans left the workforce under Biden, and nearly 800,000 fell into poverty

    • Biden advisor Ron Klain admitted that the Administration’s infrastructure spending “was hardly a game changer” for job creation

    • At a time when workers were struggling, the Obama-Biden Administration flooded businesses with regulations, at a cost of roughly $750 billion

  • Biden himself has admitted that many Americans “were left behind” during his recovery

  • Just as the economy is taking off again, Biden wants stifle it with a staggering $4 trillion tax hike

BIDEN WAS PUT IN CHARGE OF THE RECOVERY ACT – A DECISION WITH DISASTROUS CONSEQUENCES FOR WORKERS AND MIDDLE CLASS FAMILIES

In February 2009, President Obama Appointed Joe Biden To “Oversee” The Implementation Of The American Recovery And Reinvestment Act. “On February 17th, 2009, the President signed The American Recovery and Reinvestment Act, or Recovery Act, into law. This Act is an unprecedented effort to jumpstart our economy, save and create millions of jobs, and put a down payment on addressing long-neglected challenges so that our country can thrive in the 21st century. The President selected Vice President Joe Biden to oversee the Administration’s implementation of the Recovery Act’s provisions – a choice that signifies the importance of this critical task for our country’s future. Vice President Biden works closely with cabinet members, our nation’s governors, and our mayors to ensure these efforts are not just swift, but efficient and effective.” (“About The Recovery Acct,” The Obama White House, Accessed 7/8/20)

The Biden Campaign Has Touted That Biden Was “In Charge” Of The Recovery Act. “President Obama put Vice President Biden in charge of the Recovery Act, which invested more than $90 billion in clean energy technology.” (“The Biden Plan For Rural America,” Biden For President, Accessed 7/8/20) 

The Biden-Led Recovery Was The Slowest Since The Great Depression

Economic Cycle Research Institute’s Lakshman Achuthan: “This Is The Slowest Expansion On Record.” “’In terms of the average pace of GDP growth, this is the slowest expansion on record,’ says Lakshman Achuthan, co-founder of the Economic Cycle Research Institute. The U.S. economy has only grown 2% a year since it bottomed out in June 2009. That’s far below the typical growth in rosy times of over 4% a year that the U.S. has experienced since World War II. It’s even below the rather sluggish rebound during President George W. Bush’s tenure of 2.7%.” (Heather Long, “Yes, This Is The Slowest U.S. Recovery Since WWII,” CNN, 10/5/16)

CNN Headline: “Yes, This Is The Slowest U.S. Recovery Since WWII.” (Heather Long and Tami Luhby, “Yes, this is the slowest U.S. recovery since WWII,” CNN, 10/5/16)

  • “If You Look Solely At The Average Rate Of GDP Growth, It’s True That That The Economy Recovered More Slowly After The Great Recession Than During Previous Rebounds.” (Tara Subramaniam and Katie Lobosco, “Fact Check: How Trump’s Economy Compares To Obama’s,” CNN, 2/19/20)

According To Congress’ Joint Economic Committee, Economic Growth Following The 2009 Recession Grew At The Weakest Rate Of Any Post-1960 Recessions, With Growth Averaging Just 2.3 Percent Compared To An Average Of 4 Percent. “The current recovery continues to rank last among post-1960 recoveries in terms of real economic growth. Since the recession ended in the second quarter of 2009, real GDP has grown at an average annual rate of 2.3 percent. In other post-1960 recoveries, real GDP expanded at an average annual rate of 4.0 percent during the comparable five-and-one-half year period (see Figure 4).” (“The 2015 Joint Economic Report,” Joint Economic Committee, 3/17/15)

Under The Biden Led Recovery, The U.S. Did Not Recover Lost Manufacturing Jobs

During The Biden Recovery, The U.S. Economy Lost 192,000 Manufacturing Jobs. (Bureau Of Labor Statistics, Accessed 7/9/20) 

Wage Growth Was Stagnant Under Biden

Under The Biden Recovery, Wage Growth Averaged 2.2 Percent. (Bureau Of Labor Statistics , Accessed 5/21/20) 

In A “Strong Economy” Wage Growth Would Be Around 3 To 4 Percent. “That’s below the 3 percent to 4 percent that would be expected in a strong economy, according to Glassdoor economist Andrew Chamberlain. Wage growth usually has reached at least 3 percent after previous recessions.” (Aimee Picchi, “Looking For Wage Growth? Then Consider These Jobs,” MarketWatch, 1/8/16)

The Middle Class Was Left Behind Under Biden

2016 Washington Post Headline: “The Middle Class Is Shrinking Just About Everywhere In America” (Emily Badger and Christopher Ingraham, ‘The Middle Class Is Shrinking Just About Everywhere In America,” The Washington Post, 5/11/16)

A December 2015 Pew Study Found That For The First Time In Four Decades, The Middle Class Was No Longer The Majority. “After more than four decades of serving as the nation’s economic majority, the American middle class is now matched in number by those in the economic tiers above and below it. In early 2015, 120.8 million adults were in middle-income households, compared with 121.3 million in lower- and upper-income households combined, a demographic shift that could signal a tipping point, according to a new Pew Research Center analysis of government data.” (“The American Middle Class Is Losing Ground,” Pew Research Center, 12/9/15)

  • A December 2015 Gallup Survey Found That Only 51 Percent Of U.S. Adults Identify As Middle-Class, Down From 63 Percent Of Those Polled In 2008. “A Gallup survey this spring showed that just 51% of U.S. adults considered themselves middle or upper middle class, with 48% saying they are part of the lower or working class. As recently as 2008, 63% of those polled by Gallup said they were middle class.” (Don Lee, “Middle-Class Families, Pillar Of The American Dream, Are No Longer In The Majority, Study Finds,” Los Angeles Times, 12/9/15)

According To A September 2016 Gallup Poll, 57 Percent Of Americans Believed The U.S. Economy Was “Getting Worse.” (Gallup, 3,040 A, 2.0% MoE, 9/5-11/16)

In 2016, The U.S. Homeownership Rate Hit Its Lowest Level “Since 1965.” “The homeownership rate, the proportion of households that are owner-occupied, fell to 62.9%, half a percentage point lower than the second quarter of 2015 and 0.6 percentage point lower than the first quarter 2016, the Census Bureau said on Thursday. That was the lowest figure since 1965.” (Jeffrey Sparshott, “U.S. Homeownership Rate Falls to Five-Decade Low,” The Wall Street Journal, 7/28/16)

The Biden Economy Left Behind Large Parts Of America

In 2016, The National Association Of Counties Found That Under Biden, 93 Percent Of Counties In The United States Had “Failed To Fully Recover” From The Recession. “More than six years after the economic expansion began, 93% of counties in the U.S. have failed to fully recover from the blow they suffered during the recession. Nationwide, 214 counties, or 7% of 3,069, had recovered last year to prerecession levels on four indicators: total employment, the unemployment rate, size of the economy and home values, a study from the National Association of Counties released Tuesday found.” (Eric Morath, “Six Years Later, 93% Of U.S. Counties Haven’t Recovered From Recession, Study Finds,” The Wall Street Journal, 1/12/16)

14 Million Americans Left The U.S. Workforce Under Biden

From January 2009 To January 2017, 13,906,000 Americans Left The Labor Force. (Bureau Of Labor Statistics, Accessed 7/9/20)

Nearly 800,000 Americans Fell Into Poverty Under Biden

From 2008 To 2016, 787,000 Americans Fell Into Poverty. (U.S. Census Bureau, 9/19)

Biden Advisor Ron Klain Admitted The Biden-Led Infrastructure Stimulus Didn’t Do Enough To Create Jobs

Stimulus Infrastructure Spending “Had No Effect On Local Employment And Only Barely Helped The Beleaguered Construction Industry.” “A January 2010 Associated Press analysis of Recovery Act spending on roads and bridges ‘had no effect on local unemployment and only barely helped the beleaguered construction industry,’ regardless of how many dollars lawmakers threw at the various projects.” (Devin Dwyer, “Shovel-Ready, Take II: Would Obama Infrastructure Plan Create Jobs Now,” ABC News, 9/8/11) 

Former Biden Chief Of Staff Ron Klain: Even By The Administration’s Own Estimates, The Number Of Jobs Created By Infrastructure Projects Was “Hardly A Game Changer.” “Yes, infrastructure projects create jobs. But even by the administration’s own estimate, the number of jobs created or saved by $25 billion in Recovery Act spending on roads was a mere 150,000 over a two-year period. That isn’t a trivial number, but it’s hardly a game changer for an economy that needs to create 5 million jobs each year just to keep the unemployment rate constant.” (Ron Klain, Op-Ed, “Forget About Hoover Dam And Other Job-Growth Lessons,” Bloomberg, 6/14/11) 

Many Promised “Shovel Ready” Jobs Were Not, And Much Of The Stimulus Spending “Got Bogged Down In Bureaucratic Red Tape.” “‘I think we can get a lot of work done fast,’ Mr. Obama, then the president-elect, said in December 2008, after meeting with governors. ‘All of them have projects that are shovel ready, that are going to require us to get the money out the door.” But in a recent interview with Peter Baker for a cover story to be published Sunday in The New York Times Magazine, the president acknowledged what has become painfully obvious in last 20 months: ‘shovel ready’ didn’t mean what he and most people thought it did. Many of the road, bridge and sewer projects financed by the record-breaking spending bill took more than a year to even start construction as they got bogged down in bureaucratic red tape at the local level. For a country, and a president, eager to see jobs created quickly, the “shovel ready” part of the projects was a disappointment.” (Michael D. Shear, “Obama Lesson: ‘Shovel Ready’ Not So Ready,” The New York Times, 10/15/10)

Business Creation Stagnated Under Biden

By 2016, Business Formation Had Still Not Returned To Its Pre-Recession Peak, With The Level Of New Businesses Created Annually Stagnating Around 400,000. “To provide some context, consider that, by one measure (the Business Dynamics Statistics database compiled at the U.S. Census Bureau), new formation of business firms finally rebounded slightly in 2011, after four years of decline from its peak of more than 560,000 new businesses created in 2006 to a low point of fewer than 390,000 new firms started in 2010.New business formation continued to inch upward for several more years (401,000 in 2011, 411,000 in 2012), before dropping slightly in 2013 to 406,000.” (Tom Miller, “Entrepreneurship & Economic Dynamism: Marginal Return From Health Policy Thus Far,” Ewing Marion Kauffman Foundation, 2016)

At A Time When Businesses And Workers Were Struggling, The Obama-Biden Administration Unleashed A Flood Of New Regulations At A Cost Of $743 Billion

An August 2016 Analysis By The American Action Forum (AAF) Showed That The Obama-Biden Administration Had Issued 600 Major Regulations, “20 Percent More Than" Under The Bush Administration.  “Now, the administration has once again reached another record-breaking figure: 600 major regulations in roughly 7.5 years, which is 20 percent more than the previous president did in eight years.” (Sam Batkins, “600 Major Regulations,” American Action Forum, 8/6/16)

Obama-Biden’s 600 Major Regulations Came At A Cost of “At Least $743 Billion.” “What is the economic burden from these 600 major regulations? According to American Action Forum (AAF) research, based on data provided by agencies, it’s at least $743 billion (including deregulatory measures) and 194 million paperwork burden hours (President Bush issued roughly $2 billion in major rules in 2009). To put those figures in perspective, $743 billion is larger than the Gross Domestic Product (GDP) of Norway and Israel combined.” (Sam Batkins, “600 Major Regulations,” American Action Forum, 8/6/16)

  • Obama-Biden’s 600 Major Regulations Amounted To “A $2,294 Regulatory Imposition On Every Person In The United States.” “It is a $2,294 regulatory imposition on every person in the United States. In the equivalent amount of time to complete 194 million additional hours of paperwork, it would take 97,429 employees working full-time (2,000 hours a year) to comply with these new federal requirements. That’s roughly the population of Albany, NY working full-time filling out government forms.” (Sam Batkins, “600 Major Regulations,” American Action Forum, 8/6/16)

Biden Himself Has Admitted That Many Americans Were Left Behind During His Recovery, The Middle Class Was “Buried” And People Were “Right To Be Mad”

In July 2019, Biden Admitted That Many Americans “Were Left Behind” By His Recovery. “He also said that despite the economic recovery under Obama, many Americans were still reeling when Trump came along. ‘A lot of people were left behind,’ Biden said. ‘In areas where people were hard hit, I don’t think we paid enough attention to their plight.’” (Michael Steinberger, “Joe Biden Wants To Take America Back To A Time Before Trump,” The New York Times, 7/23/19)

In December 2016, Biden Admitted That “Some People Got Left Behind” During The Recovery He Was Responsible For. VICE PRESIDENT JOE BIDEN: “Well, first of all, I don't think, as a party, we spent -- look, I'm really proud of what Barack and I, the president and I were able to do in the economy. But if you notice, the last two years, in the president's State of the Union, there has been a shift in a focus, now that we got the car out of the ditch and on the road and running, on really focusing on the real inequities that exist and still exist for working-class, middle- class people who are left behind. And -- and what happened was, that wasn’t the central part of the campaign moving forward, in my view. Now, I said at the convention, when I introduced Hillary and praised her, I said we don't show enough respect to that group that, in fact, has been left behind. And these are people who had good, decent jobs. My dad used to have an expression, for real. He would say, ‘Remember, Joe, a job is a lot more than about a paycheck. It's about your dignity. It's about your respect.’ And as much as we come back, there's still a segment of people who had good, decent jobs five, 10, 12 years ago, and they are having trouble looking their kids in the eye and saying, honey, it's going to be OK, I feel certain about where we are now. And we have got to speak to those people. And, you know, I -- you know, globalization has not been an unalloyed asset to everybody. Some people have been left behind. There’s ways to deal with that. But we never got a chance to speak to it in this election. And I think we paid a price for it.” (CNN’s “State Of The Union,” 12/11/16)

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In October 2012, Biden Said That The Middle Class Has Been “Buried” During The Past Four Years. “The nonprofit tax policy center made up of former economic experts from the Bush administration, the Clinton administration, both sides of the isle. They came out and said the Romney-Ryan tax plan will raise taxes on middle class families with a child, one or more children, by an additional two-thousand dollars a year. . . how they can justify raising taxes on the middle class that’s been buried the last four years.” (Joe Biden, “Remarks At 2012 Campaign Event,” Associated Press, 10/2/12)

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In June 2012, Vice President Joe Biden Called The Economy “A Depression” And Admitted That Wages Were Stagnate And It Was “Hard” For Those In The Middle Class. VICE PRESIDENT JOE BIDEN: “God love, the unemployed are really in trouble. My grandpop used to say from Scranton. He’d say, Joey, when the guy in Dummore, the next town over, when the guy in Dunmore is out of work it’s an economic slowdown. When your brother-in-law is out of work, it’s a recession. When you’re out of work, it’s a depression. It’s a depression, for millions and millions of Americans. It’s a depression. Ladies and gentlemen, so even people, though who have jobs, are discontent. How many of you have had your wages stagnate for the past four, or five, or six, seven years. That is hard man. If you live a middle-class life that’s hard. That’s hard. So, part of the discontent in America is not just those poor people who are in a depression, but people who are working, don’t see any light. Don’t see any way it’s going to get any better real soon.” (Vice President Joe Biden, Remarks At A Campaign Event, Dubuque, IA, 6/28/12)

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In October 2011, Biden Acknowledged That The GOP Could Beat Him And Obama In The 2012 Election Due To Their Handling Of The Economy. QUESTION: “Is it strong enough of a Republican party for its nominee to beat this president?” JOE BIDEN: “Oh absolutely. absolutely its strong enough to beat both of us, its strong enough. Look, no matter what the circumstance, at the end of the day, the American people right now, are, many of them are in real trouble. An even larger percentage have stagnant wages. And a significant majority of the American people believe that the country’s not moving in the right direction. That is never a good place to be going into reelection, whether it’s your fault or not your fault, it’s almost sometimes irrelevant. But what I’m counting on, I’m counting on what I read out there, this judgement of the American people to decide. They know the hole we’re in, they know how far we’ve come out. They’re dissatisfied how fast we’re going. And they’re going to have to choose whether or not the path we have set the country on is the path we should continue to go, or we should go back to liberating the economy in the terms of.” (Joe Biden, Remarks At The Washington Ideas Forum, 10/6/11)

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In September 2011, Biden Said People Are “Right To Be Mad” About The Economy And That It Doesn’t Matter When The Economy Tanked Because “We’re In Charge.” VICE PRESIDENT JOE BIDEN: “A lot of people in Florida have good reason to be upset. Because they’ve lost jobs. Even though fifty some percentage of the American people believe the economy tanked because of the last administration, that’s not relevant. What’s relevant is we’re in charge. And right now we are in the ones in charge. And it’s gotten better, but it hasn’t gotten good enough. And in states like Florida, it’s been even more stagnant because of the real estate market. And so I don’t blame the for being mad. We’re in charge.” (Vice President Joe Biden, WLRN- Miami Herald News, 9/28/11)

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BIDEN WOULD TANK THE ECONOMY AGAIN BY RAISING TAXES ON THE MIDDLE CLASS

According To The Tax Policy Center, Biden’s Policies Amount To A $4 Trillion Tax Hike Over The Next Decade. “Biden would increase income and payroll taxes on high-income individuals and increase income taxes on corporations. He would increase federal revenues by $4.0 trillion over the next decade. Under his plan, the highest-income households would see substantially larger tax increases than households in other income groups, both in dollar amounts and as share of their incomes.” (“An Analysis of Former Vice President Biden’s Tax Proposals,” Tax Policy Center, 3/5/20)

  • Biden’s $4 Trillion Tax Hike Is More Than Double What Hillary Clinton Proposed In 2016. “Joe Biden's tax plan would raise taxes by $4 trillion over the coming decade, mostly paid by wealthier taxpayers, the nonpartisan Tax Policy Center estimated Thursday. The analysis shows that the former vice president’s tax agenda is well to the left of past Democratic presidential campaigns. The same group, for instance, projected that Hillary Clinton’s 2016 tax proposal would have increased taxes by $1.4 trillion over a decade.” (Jay Heflin, “Biden Tax Plan Would Raise $4 Trillion, More Than Twice The Hike Proposed By Clinton In 2016,” Washington Examiner, 3/5/20)

Biden’s Tax Plan Would Shrink The Economy By 1.5 Percent And Kill 585,000 Jobs. “According to the Tax Foundation General Equilibrium Model, Biden’s tax plan would reduce the economy’s size by 1.51 percent in the long run. The plan would shrink the capital stock by 3.23 percent and reduce the overall wage rate by 0.98 percent, leading to 585,000 fewer full-time equivalent jobs.” (Huaqun Li, Garrett Watson, and Taylor LaJoie, “Details And Analysis Of Former Vice President Biden’s Tax Proposals,” Tax Foundation, 4/29/20)

  • The Plan Would Lead To A Lower After-Tax Income For Americans At All Income Levels. “The plan would lead to lower after-tax income for all income levels, but especially for taxpayers in the top 1 percent.” (Huaqun Li, Garrett Watson, and Taylor LaJoie, “Details And Analysis Of Former Vice President Biden’s Tax Proposals,” Tax Foundation, 4/29/20)

According To The University Of Penn Wharton Budget Model, Biden's Policies Would Raise Taxes By $3.7 Trillion And Shrink The Economy 0.7 Percent By 2050. “Relative to current law, PWBM projects that the updated Biden tax plan would raise between $3.1 trillion (including macroeconomic effects) and $3.7 trillion (not including macroeconomic effects) over fiscal years 2021-2030 while decreasing GDP by 0.6 percent in 2030 and 0.7 percent in 2050.” (“The Updated Biden Tax Plan: Budgetary, Distributional, And Economic Effects,” Penn Wharton, 3/10/20)

  • 82.6 Percent Of Americans Would See A Tax Hike. (“The Updated Biden Tax Plan: Budgetary, Distributional, And Economic Effects,” Penn Wharton, 3/10/20)

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