Economic Growth Rates

The folks at Power Line addressed this in Presidential term aggregates; I thought I’d graph the GDP rates in each year of the last five Presidents’ terms.  The data for the graph were collected from here.

Aside from the fact that economic growth is poorer in Obama’s administration than it was in any of the preceding four Presidents’ terms, stretching back over 32 years, President Barack Obama’s performance year by year (first year compared to each of the others’ first year, second year compared to second year, and so on) generally has been poorer, also.  It’s certainly true that Obama’s first year was a continuation of President George Bush the Younger’s last, but so has each of those Presidents’ first years been continuations of their predecessors’ last years.  And President Ronald Reagan’s first year was a continuation of President Jimmie Carter’s last year—which was 3.8 points lower at 8.8% and declining from Carter’s prior years.

This also contrasts with Obama’s predecessors having had to work with the opposing political party controlling at least one house of Congress for significant portions of their terms, just as Obama has done.  Those Presidents, though, sought implementable bipartisan solutions rather than Obama’s “my way or no way” and “evil, obstructionist Republicans” attitudes.

Farm Subsidies and False Premises

Negotiators [on a proposed milk price support bill] are…working out how farm subsidies should be restructured in the absence of a traditional subsidy called direct payments, which are paid to farmer regardless of crop price or crop yield.  Both chambers’ bills would eliminate this $5 billion annual subsidy in response to critics who say it pays farmers not to farm.  But they have argued over how to replace those payments, with major farm groups squabbling over whether subsidies should kick in based on crop prices or farmer revenue, and how to count the acreage on which the subsidies are based.

Unfortunately for our pocketbooks, those negotiators are operating from a false premise: that the subsidies need to be revised in any way.  The only ones who benefit from these subsidies in any large way are the large agribusinesses and the “farm state” politicians supported by them.  Mom and pop farms?  Not so much.  On top of that, though, us food eaters are materially harmed by the subsidies through the artificially inflated prices we have to pay for food that those subsidies create.  And the poor among us are harmed the most by those inflated prices.  Additionally, us taxpayers are harmed a second—and third—time by having to pay for those subsidies that are driving our prices up and by having to pay for the food stamps that are used to mitigate for the poor those artificially inflated prices.

No.  The subsidies need to be done away with: “replace” them altogether through a bill that eliminates all of the farm subsidies, which ding us for $25 billion annually.  That seed then lets the much larger $80 billion/yr food stamp program to be drastically reduced, if not eliminated altogether, since most of those remaining who truly need help would generally be within the resources of their local communities and states.