How Corporate Democratic Obama-Biden Administration Failed to Create Jobs For U.S. Workers

In 2019 some Democratic Party politicians have been claiming that their Billionaire-donor-funded political party serves the economic class interests of U.S. workers when a Corporate Democratic President occupies the White House oval office. Yet according to Jack Rasmus's 2012 Pluto Press book, Obama's Recovery: Recovery For The Few, during the first term of the 2009-2017 Corporate Democratic Obama-Biden Administration in Washington, D.C.:

"...More than a million additional jobs were...lost between December 2008 and June 2010 after Obama's $787 billion stimulus was introduced. Construction jobs declined from 6.83 million in December [2008] to 5.78 million by June 2010, a loss of 1.05 million jobs. Similarly, manufacturing jobs over the same 18-month period fell from 12.98 million to 11.60 million, a decline of 1.38 million...There was essentially no actual jobs creation program in Obama's initial economic recovery proposals of January 2009, or in the final version that was eventually passed by Congress in February 2009...For the entire year [of 2009], the first of Obama's term in office, total foreclosed properties were a record, 3,240,867, almost a million more than in 2008..."

The same book also indicated how the Corporate Democratic Obama-Biden Administration apparently served the special economic interests of Wall Street investment banks when a Corporate Democratic President occupied the White House oval office between 2009 and 2017:

"At the top of Obama's economic recovery priority list was the bank bailout--not job creation, not housing...It was no accident that the banking and finance industry was the single largest campaign contributor to Obama's 2008 election.

"...In 2008...the Troubled Asset Relief Program, or TARP...was $700 billion in funds provided by Congress to the U.S. Treasury to buy banks' bad assets...

"The TARP approach to bank bailouts proved ineffective and politically risky...The $700 billion...raised taxpayer ire. TARP was too visible and thus was dangerous politically for administration and Congress alike. Using the Federal Reserve to bail out the banks was far less visible and preferable politically.

"...It wasn't until July 2010 that...it became public the Fed had spent $9 trillion on the bank bailouts up to that date...The Fed was insulated from electoral--and therefore Congressional--pressure to a large extent...The Federal Reserve could simply print money in the worst situation, if necessary, to bail out the financial sector...The U.S. government undertook...bank stress tests...in March [2009]...to...artificially boost bank stock prices...

"With more capital on hand from the stock appreciation and offerings, the banks loaned out the additional funds...to speculators like hedge funds, private equity firms and the like. The latter were busy speculating in Chinese property, foreign currencies, derivatives, swaps and similar investments. The banks that loaned them the funds in turn made nice profits, which further boosted their stock prices. Banks thus turned once again to the speculative investing that got them into trouble in the first place. The government turned a blind eye to the practice...The Fed charged the banks a mere 0.25 percent for banks to borrow funds from it. The banks then lent the money to speculators globally and received returns of 6 to 10 percent on average. Free money from the Fed for above-average market returns...

"So the method by which the banks and other financial institutions were effectively `rescued' or bailed out was...via...the Fed, through means of near zero cost loans, with interest paid to the banks on those loans, and via measures that artificially boasted bank stocks...such as phony stress tests and suspension of reasonable accounting rules..."