Reasons Why the US Economy is Still Bad Even in 2016

This is a coverage of the true extent of the US Economy

There had been a lot of discussion over all of the major news networks about a possible default on the debt if the debt ceiling was not raised. But the real reasons that the US economy is in such bad shape is never really revealed to the American public. At least, this type of news is not really reported accurately enough. The real reasons for the bad economy are many. So let’s discuss some of these reasons. Much of this essay is based on what this writer has read, seen and heard for a period of many years going back to 2003 so it will be biased. Those of you that want to see a different perspective on one of the most complex and troubling issues of our time are encouraged to give this written piece a chance.

A photo of George W. Bush the 43rd President of the United States


Reason #1: George W. Bush and Dick Cheney

President George W. Bush and Vice President Richard Cheney are two of the men responsible for this mess. This might be hard for many of you to believe but this is one of the real causes of the economic crisis here in America which is one of the wealthiest countries on Earth. Although Paul Wolfowitz is considered one of the architects of the second disastrous Iraq War, it was Cheney who was the real "mastermind" behind this along with Bush Jr. who kept on asking for research on whether there was a Saddam Hussein and 9/11 connection! And this country has been able to maintain a high standard of living because of all this borrowing of money from other countries so it can finance its operations. Yes, the economic slowdown is also partially due to the loans that were not able to be paid off by many homeowners and the collapse of the subprime mortgage market. But the reality is that the Republican Party’s policies are responsible for the economic chaos that America is in right now and it is very clear. The United States government spends more money each month than the revenues that it generates and it is no wonder why the country is in debt. You cannot spend more money compared to the amount that you make and expect to be in good financial shape. Not even an average person in any country can do that and expect to not face consequences.

Biggest reason for the weak US economy in 2016

What is the biggest reason for the weak US Economy even in 2016?

  • Policies of the Republican Party
  • War on Terrorism
  • Mortgage risks and collapse
  • Outsourcing of Jobs
  • Influence of Wall Street
  • The Democratic Party
See results without voting

Reason #2: Economic blunders by the Bush Team and his advisors

Just after Bill Clinton left the White House, America had a huge economic surplus. People in this country had jobs and they could support their families. But with the arrival of George W. Bush into the nation’s highest office, Bush and his team of advisors made a series of blunders which has left the US exactly in the shape that it is in now.

Using free market capitalism tactics combined with corruption, Bush and Cheney used a series of tax cuts which were shown to benefit only the wealthiest of Americans while middle class incomes declined from 2001 through 2009. Actually, the US deficit did not reach $1 trillion until 1981 which was the start of the Ronald Reagan presidency. The Republican Party’s main objective has been to make sure that the rich get richer while the poor continue to struggle. The Republican Party does not care about the average person. I know that this essay may sound biased to some readers and it is but this writer is attempting to present both sides of the story. If some of you are wondering about the Democrats’ role in this don’t worry we will get there.

A detailed map of the War on Terrorism (since 2001)

Reason #3: the failed War on Terrorism

And then with the September 11th incident, Bush launched a worldwide war on terrorism and on October 7, 2001, US forces went into Afghanistan to try and eliminate the Taliban and capture Osama Bin Laden who is now dead. The US forces along with the other NATO countries are stuck in an unwinnable war that can never be won through the use of force. It is said that wars are won politically. Then in March of 2003 the United States and the United Kingdom under then Prime Minister Tony Blair used a series of reasons to justify an illegal invasion of Iraq because they were concerned about Saddam Hussein having weapons of mass destruction. It is estimated that the US is spending $10 billion dollars each month to finance two lost wars while 1 out of every 4 children is now on food stamps. In addition to this, 1 out of 8 people is on food stamps. The United States cannot afford to keep spending this kind of money on these wars. It has been proven that you cannot spend billions of dollars on foreign wars and expect to have a healthy economy. Even James Madison understood this very well. The facts are very clear. If the United States continues the wars in Iraq and Afghanistan while the rich continue to get richer, the country is going to face bankruptcy along with other serious social problems. The corporations have continued to have record numbers of profits while an extension of the Bush era tax cuts resulted in the creation of only 18,000 jobs in June a few years ago. The news media in this country broadcasts only what they want their citizens to hear. Wars are never good for a nation’s economy and it is clear that the United States is no longer a first world country like it claims to be. The US is becoming a country of the very rich or the very poor. The wars overseas along with the horrible decisions to cut the taxes of the wealthiest Americans have proven to be very costly. A nation that is on the verge of bankruptcy cannot ever be considered a first world nation. Some people have even said that Mexico now has a better economy than the United States does. The United States must withdraw all of its troops from both Iraq and Afghanistan as soon as possible. The wars in those countries have already been lost and there is no way that the US army can win these wars against populations that have so much pride and they are willing to die for their country. It is time that these wars came to an end right now. Over 14 years of war in Afghanistan has not eliminated the Taliban and force will never get rid of them. Almost 5,000 official US deaths later in Iraq have not produced the so-called weapons that Bush and Cheney claimed that Iraq had.

Instead, billions of dollars and many lives have been wasted for nothing while the US economy continues to suffer.

Reason #4: it is not Barack Obama’s fault

It is time for the people of America to stop blaming Barack Obama for the economic mess in America. He inherited this situation and it was never his fault. The real problem is the Republican Party and it is as simple as that. The Republican Party is extremely corrupt. A victory in the 2012 general election for the Republicans would have meant that America would go further into debt and be destroyed economically. The Republican Party’s bad and irresponsible policies are one of the biggest reasons for the bad US economy and not Barack Obama. It is time that the American public realized this. The Republican Party of the late 20th and early 21st centuries is much different than the one that existed in the 1860s during the term of Abraham Lincoln. What a difference that a period of 140+ years can make in a country! Many things can change and there are many things in America that have changed since 1861. So if the bad US economy is not the fault of President Obama, then who is really to blame?

Reason #5: the risky loans that were sold to customers by mortgage companies such as Countrywide Financial Corporation

Another huge reason for the US economy being still bad is due to the fact that mortgage companies such as Countrywide Financial Corporation sold and gave risky loans to its customers. These customers were convinced to accept these loans even though they could not pay them. As someone who used to work for the company that was the largest mortgage lender in the US, I saw and heard what was going on in the company. This writer used to work for Countrywide Full Spectrum Lending Division in Southern California between 2004 and 2007 in the sales and processing departments. Due to irresponsible and risky behaviors of former CEO Angelo Mozillo and some of the people higher up in the company, many people lost their jobs and were forced to look elsewhere for work. So on a related note…

Reason #6: the rise of Wall Street and the influence of it on American politics

These days, the rise of Wall Street and Corporate America has much to do with how the US economy is functioning. These corporations and lobbyists have a lot of say in who gets in the White House. Many members of Congress follow where the money will take them. This includes members of both major parties. Corporate America basically manipulates these politicians and tells them what to do, so it is fair to say that the Democrats are at least partially to blame for the tough times that we still face. Readers will now get some additional outside perspective and see why the US economy is still not where it should be even in 2016 as we approach the Presidential election in November 2016. And what is about to follow is documented evidence and facts, not just me saying something to get points across.

More statistics to prove the real state of the US Economy

According to some statistics released by the Guardian newspaper in London in 2013, it was not even looking good at that time. One major problem is that wage earners are seeing their earnings drop. Between 2009 and 2012, median wages in the US dropped by 2.8% (Herbst). And Herbst also says something in this article that Bernie Sanders has said MANY times: the middle class here in the US is declining! Another thing that people should really pay attention to is that the said unemployment rate at the time of 7.6% was not accurate. In June 2013, if we were to look at the unemployed population plus those that were looking for a job but gave up and those that are part-time workers but they want a full-time job, the figure was estimated to be at 14.3% (Herbst). If you do the math, that’s almost twice as high as the stated figure! Why is our media deceiving us? Maybe they don’t want us to be afraid which may be a logical assumption at this point. Some of you may be asking how we improve the US economy. That’s not the focus of this article. The reality is that unless we make the US a more business friendly environment, things will continue to be harder for young people, even this writer. And sadly, I have not really heard any real solid solutions from either of the major political parties on how to fix this massive problem. So there you have 6 major reasons why the US economy is still bad in 2016.

Works Cited

Herbst, Moira. 10 Reasons The US Economy is Stuck. 24 July 2013. 5 May 2016.

A video about wealth inequality here in the US (relates to the topic)

More by this Author


jackclee lm profile image

jackclee lm 5 months ago from Yorktown NY

In case you haven't noticed, it is the year 2016. You can make that argument in 2009 and 2010 and maybe 2011. It's been seven and half years since President Obama is in charge. The real reason the economy is sluggish and have been since 2010 is Obamacare or otherwise known as Affordable Care Act. It was a job killer and it turned out to be neither affordable or better care. Ask any small businessman what is preventing them from hiring more workers. The mounting government regulations by the various federal agencies such as the EPA has killed many jobs and lead to the failure of our coal industry. I can go on but your lens is clouded. Thou doest protest too much...

CELEBSFAN78 profile image

CELEBSFAN78 4 months ago from LOS ANGELES Author

Actually what some people may not realize is that the Affordable Care Act was started so that people with preexisting conditions such as myself can have access to health care. The idea that ObamaCare is a job killer may have some truth to it (depending upon who you ask) but the bottom line is that health care is a basic and fundamental human right. Before Obama took office, those with preexisting conditions such as myself could not even get health insurance. This is an employers market because that's the way that they want it to be. In their mind, it is cheaper to hire no one than to hire somebody that may desperately need a job! I don't know much about the EPA but I do know that Republicans have been playing games and THEY are the ones that always wanted to make sure that Obama failed as President because they had resented him all along, they probably planned to resent him as soon as he was inaugurated. As I was trying to point out, both major parties share the responsibility for the situation that we are in. We need to be focused on solutions instead of playing games.

jackclee lm profile image

jackclee lm 4 months ago from Yorktown NY

Celebsfan78, I am glad ACA is working for you but have you thought about how a different plan could have fix the preexisting condition coverage and not cause so much disruption for the rest of us? That was the problem with ACA, it was not debated properly as it should. It was forced on the American people with one party support only. I predict it will not survive as enacted. The full impact will not be completed until Obama left office, by design. Many health exchanges are already failing. Republicans had an alternative plan but were not given any chance to discuss them. If you want, I can teach you more about the EPA and other government failures.

CELEBSFAN78 profile image

CELEBSFAN78 4 months ago from LOS ANGELES Author

As far as I know, the GOP wants to privatize everything, that is why health insurance in this country has been so expensive. Because it has been privatized so that any insurer can charge whatever amount that they want to. Then you have someone like Bernie Sanders that wants to truly reform and change this country to make it better for its citizens. Marco Rubio had the audacity to claim that the United States is not Sweden (obviously not) but the problem is that the GOP will condemn any move that does not cater to its own interests and THAT is a major problem. Even if the ACA is expensive it is certainly better than what we had before.

jackclee lm profile image

jackclee lm 4 months ago from Yorktown NY

celesfan78, You have it backwards. The reason healthcare was more expensive before is that it was not fully privatized. One of the solution put by GOP was to allow insurance companies to compete across State lines. It is now expensive for a difference reason. The people who are covered most of them require government subsidies. That is spreading the cost among everyone else. I cannot debate the full ACA act with you, it would take too long. The proof is in the results.

By the way, healthcare is not a basic human rights. It is not in the Constitution. Human rights are life, liberty and the pursuit of happiness... There is no free lunch, no free healthcare and no free housing or free cell phones... Some tax payer is paying for it.

CELEBSFAN78 profile image

CELEBSFAN78 4 months ago from LOS ANGELES Author

I never suggested that healthcare should be free. On the contrary, the United States deserves to have a system where anyone that wants insurance can purchase it without having to pay so much money or to be told that their insurance does not cover a specific procedure because their insurance is an HMO (as an example). If countries such as Norway, Sweden, or Switzerland have universal health coverage, there is no reason why the US should not have it. The other problem is that adopting a universal health care system would cause an uproar from private insurers that would complain all day. We can't please everyone but citizens of this country should have the proper access to health care!

jackclee lm profile image

jackclee lm 4 months ago from Yorktown NY

Celebsfan78, I totally agee with your statement. Do you think ACA fullfill that promise?

President Obama missed an opportunity to work on a compromised bill with the Republicans. Instead, he allowed the lobbists and the Insurance companies to write this 2000 pages of a monstrocity bill and forced it upon the people and over 70% disapprove. In my opinion, this bill was designed to fail. That is why the rollout web site was such a disaster. What the Administration is hoping is that the ACA will fail in afew years and the government will take the whole thing over and leading to a single payer system.

CELEBSFAN78 profile image

CELEBSFAN78 4 months ago from LOS ANGELES Author

Anything that is already signed into law cannot be repealed and overturned. If the GOP wants to enact a brand new system, they will have to debate it and both houses of Congress must vote and the majority must agree to pass it. And then the future president must sign the bill for it to become law. Why would the Obama Administration hope that this ACA fails? That part doesn't make sense to me. This has been a great discussion though.

jackclee lm profile image

jackclee lm 4 months ago from Yorktown NY

Bad laws are repealed all the time.

You can search on President Obama's speech back when he was still a Senator and he clearly said he wants a single payer system and that it will take 20 years to get there. He intended the ACA to be a stepping stone to his ultimate goal. How else will you explain the failed launch of the health exchange web sites? This is not rocket science. Websites like these are developed by agencies private and public all the time. The cost overrun is another matter. One of my other compaints about big government is that it is so wasteful with our tax dollars.


CELEBSFAN78 profile image

CELEBSFAN78 4 months ago from LOS ANGELES Author

That's one of the reasons why there has been the rise of parties such as the Libertarian Party. One of the main ideas of this party is that they want no government intervention in the lives of the people. On the other hand, it was under the presidency of Franklin Roosevelt that we adopted such programs as Social Security and public works projects, designed to get people back to work. The responsibility of any government is to make sure that its citizens are well taken care of. But how can we do this if one of the major parties opposes what the Executive Branch sets out to do?

jackclee lm profile image

jackclee lm 4 months ago from Yorktown NY

Where did you get the idea that the "responsibility of any government is to make sure that its citizens are well taken care of..."

You have a poor understanding of our Constitution. I suggest you read up on what our government is all about. You can start by reading my American civics 101 hub.

By the way, I would not recommend putting your trust on any government. The lessons of Katrina should remind everyone that government has limitations.

CELEBSFAN78 profile image

CELEBSFAN78 4 months ago from LOS ANGELES Author

The US has three branches of government, and there is a checks and balances system in place to ensure that no one branch has too much power. Yes, government does have its limitations. My feeling is that the GOP wanted Obama to fail as President and Senator Mitch McConnel met privately with others to discuss on what they could do to make sure Obama was only a one-term president. Thankfully that didn't happen. This Administration tried to create an alternate system of health care compared to what we had before. People can complain all they want to but complaining doesn't change the system. Just as a side note: no government is perfect but the US could and should be better than it is.

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