Daily Scoop Xtra: Private Sector under Obama

After President Obama’s out-of-context comment, “The private sector is doing fine.” caused a stir across the politcal spectrum on Friday, fact checkers and economic experts began assessing its accuracy. While it is very true there is a long way to go before we reach pre-recession status, the current state of the private sector is quite positive, especially when it compares to the public sector which has suffered from austerity measures imposed at local and state levels.
So what has happened with the private sector under the Obama Administration?
First, after tax corporate profits have never been higher.
First, here are corporate profits after tax. They've gone parabolic and never been higher.


New record for corporate profits as a share of GDP
And if you look at corporate profits as a share of total GDP, we're at another brand new record.


As profits increase so are investments.
So corporations are making all this money. But are they investing? That's been coming back nicely.


Private sector may be off from its old highs there is little doubt it is coming back.
What about hiring?  It's true that private sector employment is still well off its old highs.


Private sector has been adding jobs steadily since the end of Obama’s first year & there are today more jobs than before Obama took office.
However, the private sector has been adding jobs steadily since the end of Obama's first year, and today there are more private sector jobs than there were before Obama took office.


For the full set of figures and to see how the public sector has faired click here.
*FRED stands for Federal Reserve Economic Data

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2 Comments to “Daily Scoop Xtra: Private Sector under Obama”

  1. Bottom line, those who don’t want to hear or believe won’t; those who blindly believe will, meanwhile some us just want to know the facts shifted through all the gibberish. Thanks.

    • Unfortunately, that is all too true Frank. Your comment is pretty timely as I just ended a bit of a circular debate with a far-right blogger who in the end concluded, “There is no point to this discussion. You are a leftist. I am a Republican. You claim my information is faulty, and refer me to sources that I reject. ” The source in question was Politifact. Nothing I could possibly say, no amount of evidence would break through that wall of “belief”.

      It’s actually a fairly sad time we live in when we witness things like this.

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