How Obama and Democrats Continue to Decimate the American Middle Class

By Jeffrey Klein via The Examiner

The Dodd-Frank Wall Street Reform and Consumer Protection Act,  was a “fig leaf” law manufactured by desperate Democrats for two very important  reasons [to them].

To protect the political legacies of two high-profile Democrat career  politicians, Sen. Chris Dodd (D-CT) and Rep. Barney Frank (D-MA), who, as  chairmen of their respective banking committees, were the “henchmen” who blocked  numerous attempts by the Bush Administration to step in and audit the now  collapsed Fannie Mae and Freddie Mac.

More importantly, it was to hide the fact that the “Sub-Prime Mortgage”  crisis that caused the meltdown of the U.S. economy was actually propagated by a  1995 Clinton-era wealth re-distribution plan, which “forced” banks to abandon  mortgage qualification standards so they could provide mortgages to high-risk,  low income homebuyers with little or no down.  And, according to the Law of Unintended Consequences, it was the middle class  that was most greatly devastated by financial loss and high, protracted  unemployment–even though, ironically, they are the very people President Barack  Obama and Democrats claim to be protecting now, against the “evil” capitalist  Republicans.

According to Susan Adams’ Forbes article yesterday, citing a recent  episode of CBS’ “60 Minutes,” one of the most troubling aspects of the  unemployment picture in the U.S. today is the fact that more than 4 million  Americans have been out of work for more than a year, and more than 2 million  have been jobless for more than 99 weeks, so their jobless benefits have run  out.

Long-term unemployment has reached levels not seen in the U.S. for the last  60 years.

Those who have been out of work for two or three years wind up taking drastic  measures. They sell their homes and their cars, and they pull kids out of  college. They lose contact with their professional networks and struggle with  rock-bottom self esteem.

“I was so ashamed to reach out for help, because I felt discouraged. I felt  ashamed that I had failed,” Vernon Downes tells 60 Minutes.  A  former information technology project manager for a company that makes medical  devices, he had been looking for a job for two-and-a-half years. Downes had gone  on food stamps and taken a part-time job blowing leaves for a landscaper.

A recent Business Insider article, which profiled 11 middle class men  and women who have been unemployed for at least two years, includes Veronica  Orozco.  She is a 30 year old Civil Engineer, wife of a grad student and  mother of two, who had been with a firm in Chicago.

Veronica has been unemployed since June 2007.

The article stated that most people don’t understand how someone could fail  to find a job for over a year unless he was lazy or somehow defective.   And, it was found that this stigma makes finding a job harder, every day that a  person has been unemployed.

Now, excessively long term unemployment is driving people mad–costing  taxpayers billions of dollars in mental illness and other disability  claims.

The New York Post reported Sunday that as unemployment checks run  out, many jobless people are trying to gain government benefits by declaring  themselves unhealthy.

In January, more than 10.5 million people, or about 5.3 percent of the  population aged 25 and 64, received disability checks from the federal  government, which is an 18 percent jump from pre-recession rates.

Among those claiming disability, 43 percent are asking for benefits because  of mental illness–a growing number of whom are older, former white-collar  workers.

These claims put increased pressure on the fiscal viability of the Social  Security Trust Fund, which is already set to go broke in 2018–even though last  week Congress voted to extend the “Payroll Tax Holiday” through the end of the  year, eliminating over $100 billion from the funds income.

The Post noted that the more people file for disability claims, the better  for the unemployment picture since those people are removed from the jobless  rolls.

This is most likely the primary, yet perverted, factor that has caused the  systematic and “false” reduction in the unemployment rate over the past four  months–not an upturn in the economy as President Obama would have us all  believe.

And, Obama’s refusing to approve the Keystone XL pipeline project again last  month, cost the country 20,000 desperately needed high paying jobs within  months–without any taxpayer loans.

This is just more proof of how President Obama and Democrats have decimated  the middle class in America–instead of protecting them, as they claim.

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