American Elephants


“Middle Class Economics” Also Known as Income Redistribution by The Elephant's Child

Obama is in the sixth year of his presidency, and he has just discovered that the middle class is not doing so well. So he wants to take up what he calls Middle Class Economics. He seems to describe his economic programs based on their origin, so middle class economics begins with the middle class and expands outward to benefit everyone. Just how this works is unclear.

The number of food stamp beneficiaries exceeds 46,000,000 for the 38th straight months. Republicans consider this a shocking comment on the continued slow recovery. Democrats consider it to be a remarkable accomplishment. It ‘s worthwhile to keep that difference in mind.

Another problem afflicting the middle class is stagnant wages. We are just not seeing the growth in wages that we should  six years after the official end of the Great Recession. Some would attribute that fact to a plentiful supply of workers looking for jobs, but the Obama administration wants to go directly to the cause. They will just force employers to pay workers more.

Hence Obama plans a massive expansion of overtime, raising the cut-off for overtime from the current $23,600 to $50,000, a significant jump— time-and-a-half for anything over 42 hours, and of course he’s got the employers over a barrel on the other side with ObamaCare penalties.

Have you been saving money for the kids’ college education? The money (already taxed) that you put into a  529 plan might have had the audacity to grow, so it’s only fair that you tax the growth — Right? And just in case they have missed anything, they want to raise taxes on capital gains. And he ‘s still plumping for an increase in the minimum wage.

Republicans would consider any request to raise taxes dead in the water, but just what Mr. Obama might attempt to do by executive order remains an unknown.

Nobody thought he’d try to do the things he already has done by executive order or executive memo which is the same thing and carries the same force of law.

Nobody is quite sure what to do with a president who deliberately ignores the constitutional separation of powers. He’s supposed to see that the laws are carried out, and the Congress is supposed to make the laws. The Judicial branch is not supposed to be making laws either, but that’s a separate story.


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