This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Morici: Obama's Two Americas, the Economy and How Democrats Win Elections

NEW YORK (TheStreet) -- President Obama is dividing America into two nations, one rich, the other increasingly poor, and both more likely to elect Democrats. Americans growing richer support his policies, and those growing poorer are increasingly dependent on Democratic politicians for government handouts.

In this century, the economy has not performed well, and a jobs shortage has driven down the income of most Americans. Obamas recovery has managed only 2.4% growth, but George W. Bush's expansion scored about the same rate and then collapsed altogether.

Since 2001, when Bush took office, the U.S. economy created only 4.7 million jobs, about 30,000 a month and less than one-fourth of those needed to keep pace with population growth. For most, wages after inflation and higher state taxes have fallen.

Technology is important. The digital revolution and the shift of news and entertainment to the Internet, cable, eBooks, and the like have effectively killed one million jobs. Globalization is a culprit. American industry still boasts many of the best products and most efficient factories but has shed 5 million jobs, far more than can be justified by rising productivity.

Manufacturing has enjoyed a small renaissance but has recouped only one in nine lost jobs, because Bush and Obama poorly enforced trade agreements that apply to principal competitors. China, Japan and Germany systematically maintain currency advantages and barriers that artificially underprice their products and block our exports.

Obama has unilaterally imposed environmental and energy policies that needlessly raise costs and penalize competitiveness. Increasingly workers are divided into two groups.

Those with diplomas from elite universities rely less on sinking U.S. fortunes and more on global markets for their services, or who can simply manipulate markets. Big wealth is concentrated on Wall Street, the Silicon Valley, and Hollywood, and players with monopoly powerlike the NFL and your local cable operator.

Meanwhile, the rest of America goes without a job or languishes with sinking wages waiting on the new elite in restaurants and hotels.

One in six men between the ages of 25 and 54 have no jobs, few prospects for finding one, and are increasingly supported by their wives.

Contrary to the cynical alibis of Democratic politicians and feminists, this is not a choice made possible by greater gender equity. During the William Clinton years, when both women and the overall economy made strong gains, the percent of prime-age men working increased, but since has declined precipitously.

Non-elite males don't vote for Democrats and certainly are not likely to vote for Hillary Clinton, so Obama happily pursues policies that marginalize and make them despondent.

Hillary talks endlessly about programs to help girls and women, but little about the plight of those forgotten men and the boys our schools are failing.

Democrats answer these problems with strategies that motivate the poorly and less prestigiously educated to quit the labor force altogether and rely on government largess, and rewards the wealthy elite who finance their campaigns.

According to the Congressional Budget Office, ObamaCare's perverse incentives will motivate 2.3 million low and middle-income Americans not to seek employment. One in seven adults is now covered by food stamps.

Strong enforcement policies and generous tax treatment for intellectual property enhances the wealth of high-profile Democratic contributors in Hollywood and the Silicon Valley.

The Obama Justice Department, unlike its Clinton and Reagan era predecessors, fines banks instead of prosecuting financiers who defraud investors. Then Democratic fundraisers collect commissions from left-leaning bankers and lawyers with seven and eight figure incomes.

IRS stalks conservative political contributors and the Justice Department rifles the phone and email records of reporters. We can't have too many critics stirring up the masses.

The PC police, now ensconced at the helm of America's once great universities, limit conservative voices but supply NPR and the New York Times with research that pimps progressive causes.

Wrapping it all together, Democrats win elections cultivating a large contingent of voters whose declining circumstances require substantial government support, and finance their campaigns with contributions from elites profiting from globalization. Critics are squelched, and the Republic declines.

I thank my stars for tenure, but feeding my family and writing this column will only get tougher under the high heels of a President Hillary Clinton.

Peter Morici is an economist and professor at the University of Maryland Robert H. Smith School of Business.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Professor Peter Morici, of the Robert H. Smith School of Business at the University of Maryland, is a recognized expert on economic policy and international economics. Prior to joining the university, he served as director of the Office of Economics at the U.S. International Trade Commission. He is the author of 18 books and monographs and has published widely in leading public policy and business journals, including the Harvard Business Review and Foreign Policy. Morici has lectured and offered executive programs at more than 100 institutions, including Columbia University, the Harvard Business School and Oxford University. His views are frequently featured on CNN, CBS, BBC, FOX, ABC, CNBC, NPR, NPB and national broadcast networks around the world.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs