President Obama's Agenda Fails the Middle Class: Opinion

NEW YORK ( TheStreet) -- As President Obama travels the country speaking about immigration, student loans, taxes and the like, increasingly, Democratic leaders are lobbying him to tell voters how his agenda strengthens the middle class.

Otherwise Republicans, they fear, will use the IRS and other scandals to distract public attention and stall most of his legislative proposals.

Unfortunately, most of Obama's initiatives may appease liberal elites, but don't do much to bolster opportunities for middle class and working families.

His immigration policy comes down to spending record sums to deport undocumented immigrants with criminal records, but letting just about anyone else who manages to get across the border stay and have babies -- presumably, who will one day vote Democratic.

If he gets his way in proposed legislation, many undocumented workers will eventually become citizens, and businesses like GE ( GE) and Apple ( AAPL) will be permitted more visas in skill-short areas like engineering, but the border won't be secured. The ranks of semiskilled immigrant workers, who drive down wages in hospitality, construction, manufacturing and other sectors, will continue to swell, frustrating the middle-class aspirations of the working poor born in this country.

His massive expansion of student loans permits universities to jack up tuition, bloat administrative staffs and indulge faculty to teach even less and less effectively. Students are graduating encumbered by massive debt and too few marketable skills. Broke and unemployed, they are not marrying and starting families -- that shrinks the middle class.

Despite the availability of loans, skyrocketing tuition mandates ever greater family contributions to finance college. This puts higher education further out of reach for many working class families, and fewer low income children are pursuing post-secondary education than in the past -- that shrinks the middle class, too.

Organized labor, academics and other progressives jealous of peers in business endlessly obsess about income redistribution and tax rates. The president has jacked up taxes on families earning more than $250,000.

Unfortunately, most businesses in America are either proprietorships or pass through corporations that pay those higher individual, as opposed to corporate, tax rates, raising the cost of investing and expanding businesses -- that spells fewer jobs for the middle class and those who aspire to its ranks.

Unable to push through Congress limits on CO2 emissions, President Obama has used executive orders and the EPA to impose limits by fiat. Unfortunately, those actions will raise manufacturing costs; China has no such limits, and all this encourages business to outsource in China -- again fewer jobs for the middle class and aspiring middle class.

Free-trade agreements that permit trading partners to undervalue their currencies, subsidize exports and artificially underprice their products on U.S. store shelves; health care mandates that raise the price of insuring employees instead of controlling costs; unnecessarily cumbersome regulations to run factories; mindless limits on developing U.S. oil reserves; and exporting abundant natural gas to countries that shut out U.S. products with high tariffs. All of this encourages outsourcing, not just in manufacturing, but for many supporting services, too -- yet again, fewer jobs for middle class Americans.

Performance not polemics is the problem. His progressive agenda has accomplished 2.1% growth and an anemic job market since the economic recovery began.

In comparable circumstances, Ronald Reagan engineered 5% growth and many more middle class jobs by rejecting the failed policies of the left and betting on American's competitive instincts.

Democrats are asking too much of President Obama to explain how his agenda helps the middle class. There's no there, there.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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.

More from Politics

3 Things Investors Must Know for Monday

3 Things Investors Must Know for Monday

It's Dumb to Think Legalizing Weed Is Still a Political Issue

It's Dumb to Think Legalizing Weed Is Still a Political Issue

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Trump's Oil Tweets Ruining the Stock Market's Rebound?

Trump's Oil Tweets Ruining the Stock Market's Rebound?

Former First Lady Barbara Bush Dies at 92 Years Old

Former First Lady Barbara Bush Dies at 92 Years Old