President Barack Obama’s economic policies are proving disastrous for the country, says Peter Morici, a professor of international business at the University of Maryland.
“The three horses in the apocalypse for the American economy are Obama’s energy policies, . . . excessive business regulation . . . and Obamacare,” he tells Newsmax TV in an exclusive interview.
The energy policy is “shutting down drilling in the eastern Gulf and off the coast of the Atlantic and Pacific,” Morici says. The amount of regulation that affects the economy has tripled under Obama, raising the cost of capital and keeping people from creating jobs, he says.
“Already, healthcare costs are 50 percent higher than Germany,” he said. “They have a private healthcare system, so do we, and they have better outcomes than we do. Yet ours is more expensive. And Obamacare makes it even more expensive for employers to provide.”
The overall impact of all this isn’t pretty, Morici says.
“No president could have conceived a better program for shutting down jobs creation, collaring growth, and setting America on the path to decline than Mr. Obama’s team,” he states. “It’s an absolute tragedy what’s happening to the United States.”
The playbook calls for increased spending on entitlements without regard for cost and increased regulations without regard for business, Morici says. That’s similar to Italy, France and Spain in the 1960s through ’80s, he says.
“I don’t care to have their new millennium, and I don’t think Americans should either,” he said. “It’s unfortunate, but we’re saddled with this for four more years.”
Discussing April jobs data, Morici said, “it was a pretty decent jobs report as these things go the last several months.”
Unemployment fell to a four-year low of 7.5 percent last month, and non-farm payrolls rose a bigger-than-expected 165,000. March’s payroll gain was revised up to 138,000 from 88,000.
“Not only was this number [April payrolls] up, but that terrible number from March was revised upward,” Morici says.
“So we’re about on the trend we have been, which means the economy is growing slowly,” he said. “We’re not creating enough jobs to really put everybody back to work.”
Without the falling adult participation rate in the workforce, unemployment would be near 10 percent, Morici says. “But certainly we’re not in the soup as we expected we might be.”
Still, the economy’s expansion is disappointing, Morici says. GDP growth has run at a 2.1 percent annual pace over the last 45 months, he states. The comparable figure during the Reagan administration was 5.3 percent.
“Both presidents had 10-percent-plus unemployment; Mr. Reagan accomplished a lot more,” Morici says. “We simply could and should be doing better.”