Pres. Urges Public Patience on Economy

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Registered: 03-18-2000
Pres. Urges Public Patience on Economy
14
Tue, 07-14-2009 - 10:02am

I don't understand all this pessimism. It took years to get into the economic mess we can't expect to recover in a few months. Republicans using this to instill fear in their constituents is plain wrong IMO.


President Urges Public Patience on Economy


http://www.nytimes.com/2009/07/12/us/politics/12obama.html?hp



WASHINGTON — President Obama is stepping up efforts to maintain public support for his agenda as rising unemployment presents him with the biggest test of his political strength since taking office.


Faced with an economic downturn that has proved deeper than the White House initially projected, Mr. Obama asked Americans on Saturday to remain patient, arguing that his $787 billion stimulus plan had saved the economy from collapse and put it on a gradual course to recovery.


“As a result of the swift and aggressive action we took in the first few months of this year, we’ve been able to pull our financial system and our economy back from the brink,” he said, deflecting calls for a new round of stimulus spending and saying that his plan was intended to work not in a few months but over two years.


Facing an array of challenges on Capitol Hill and concern about the huge budget deficit, he cast his main legislative initiatives, starting with his call for overhauling the health care system, as part of a long-term plan to rebuild the economy on a sounder foundation.


Mr. Obama returns to Washington on Sunday from a weeklong trip abroad at a time when Democrats have grown increasingly jittery about the economy and the political risks of the president’s ambitious agenda on health care, energy and climate change, financial regulation and other issues.


Aides said Mr. Obama’s remarks on Saturday, delivered in his weekly radio and video address, were intended to help regain control of the debate. He will follow up with speeches in Michigan and New York in the coming week, and possibly a prime-time news conference.


Behind the scenes, the White House is working to calm nervous lawmakers. Rahm Emanuel, the White House chief of staff, urged House Democrats in a private meeting earlier in the week to take note of polls showing that Democrats were in much stronger shape than Republicans on the issues of taxes and economy.


Mr. Emanuel assured them, according to those attending, that the White House “has their back” as they are being asked to take tough votes.


“We have to fly through a little turbulence,” said David Axelrod, one of Mr. Obama’s senior advisers. “But the important thing is to keep going, understand where you are headed and not lose heart in the middle of the journey.”


Still, the shifting environment threatens to make it harder for Mr. Obama to rustle up votes from nervous Democrats who, unlike Mr. Obama, have to run for re-election next year. Some polls have found a slight softening in support for Mr. Obama and his economic proposals nationally and, potentially more worrisome for Democrats, erosion in battleground states including Ohio. “It makes everything a little harder,” said Senator Michael Bennet, a Colorado Democrat who will be on the ballot next year.


Representative Jason Altmire, Democrat of Pennsylvania, said: “Everyone is concerned — you want it to be better. I think everyone realizes this was a long-term process. We are digging out of a deep hole.”


And Senator Charles E. Schumer of New York, the No. 3 ranking Democrat, said that the complications from persistent weakness in the economy were “probably the most serious challenge we as Democrats face.”


Republicans said they sensed a new vulnerability in Mr. Obama. They have been visibly energized as they argue that his stimulus plan was costly and ineffective and that his health care plan will mean tax increases and more government bureaucracy.


“While the president’s personal numbers are still good, his policies, particularly the spending and the rising debt, are scaring people,” said Senator John Cornyn of Texas, the chairman of the National Republican Senatorial Committee.


Mr. Cornyn said he believed that any patience the public had with the Obama economic approach was wearing thin and that Democrats would have difficulty continuing to blame the Bush administration for economic troubles.


“Time’s up on that one,” he said.


From the moment he took the presidency, Mr. Obama has warned that it could take years to get the economy back on track, and most polls showed that Americans were prepared to give him time.


The worsening economy could test just how much time Americans are willing to give him, particularly if the unemployment rate, now 9.5 percent, the highest since 1983, breaks 10 percent. Most economists anticipate that the unemployment rate will reach double digits this year.


And some politically critical states have already reported that unemployment has broken 10 percent. Ohio hit 10.8 percent in May. Florida, Indiana and Michigan are already well above that threshold while other states are approaching it. That could make it much more difficult to persuade conservative Democrats in those states, already worried about challenges from Republicans next year, to cast votes for legislation like the health care or climate-change bill, particularly if these measures include some form of tax increases.


In one sign of this, three of the five House Democrats from Indiana, which reported an unemployment rate of 10.6 percent in May, voted against the climate-change measure backed by the White House when it passed by a narrow margin on the House floor last month.


House leaders signaled on Friday night that they would seek a vote on raising taxes by $550 billion over 10 years on the wealthiest Americans to help pay for the health care overhaul, a move that could put many Democrats in competitive districts in a difficult position.


A slow economic recovery would mean a further downturn in government revenues, which in turn could increase the size of the deficit as Mr. Obama is pushing for more spending. Historically, the deficit has been a potent issue with independent voters in particular, and it is already projected to remain at record levels for years to come.


In an interview, Mr. Emanuel criticized Republicans for assailing the stimulus package and said voters understood the depth of the problem and how much time it would take to turn around.


“I think the public knows three things: We inherited a total mess; we’re working hard on it; and we’re not going to get out of it overnight,” he said. “Here’s the deal: The key to what this year is about is rescuing the economy from falling off the cliff and trying to put in place the building blocks of recovery.”


Still, Mr. Obama’s aides acknowledged that they had only limited time, and that lawmakers might have less patience than voters. As a rule, voters’ views of the state of the economy tend to become cemented six months before Election Day.


“Nervousness is the natural state of politicians,” Mr. Axelrod said. “But the truth is on all of this stuff, the real risk is doing nothing. “


Democrats said they did not relish the prospect of heading out to face voters if things have not begun turning around.


“People are mad, angry,” said Representative Allen Boyd, a moderate Florida Democrat. “When you have times like that, everybody gets in a foul mood. It is rough for an elected official to run in that kind of environment.”


Obama: 'We are not quitters'


http://www.hdnews.net/Story/obama022509

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Registered: 03-18-2000
Tue, 07-14-2009 - 10:20am
Obama to boost community colleges, retraining efforts
He makes first visit to Mich. as president, after auto bailouts

http://www.detnews.com/article/20090714/POLITICS03/907140354/Obama-to-boost-community-colleges--retraining-efforts


Washington -- Barack Obama -- battling to reverse the nation's stubborn economic downturn -- returns to Michigan on Tuesday to unveil an initiative to boost community colleges and worker retraining for jobs in growing industries such as energy and health care.


He is making his first visit here as the nation's 44th president but also as the top official overseeing the government's majority ownership in General Motors Co. -- a struggling industrial giant that still serves as a reminder of the region's economic woes and challenges.


Obama will tout efforts to expand education opportunities during a speech at Macomb Community College in Warren. His visit comes when the country's unemployment rate is 9.5 percent -- a 26-year high -- and Michigan is looking to community colleges to provide retraining opportunities for thousands of unemployed workers.



Michigan's jobless rate leads the nation at 14.1 percent and the state's Senate Fiscal Agency warns it could reach nearly 17 percent next year.


For decades, the state's economy has been fed by easy-to-get factory jobs that often did not require more than a high school diploma. However, that era has ended as GM, Ford Motor Co., Chrysler Group LLC and parts suppliers shed thousands of manufacturing jobs.


"Our community colleges can serve as 21st-century job training centers, working with local businesses to help workers learn the skills they need to fill the jobs of the future," Obama said in an article in Sunday's Washington Post. "We can reallocate funding to help them modernize their facilities, increase the quality of online courses and ultimately meet the goal of graduating 5 million more Americans from community colleges by 2020."


White House press secretary Robert Gibbs said Obama's speech today will highlight "the need for continued education beyond high school. Many of the jobs that we're going to create in the future ... are going to require some post high school education."


About 6 million Americans attend community colleges.


Another administration official, speaking on condition of anonymity, said jobs requiring at least an associate degree are "projected to grow twice as fast as those requiring no college experience."


By year's end, Michigan is expected to have lost 950,000 jobs since 2000, or 20.3 percent of its work force, according to a recent University of Michigan report, largely because of dramatic restructuring in the U.S. auto industry. Per-capita income in Michigan fell from 16th to 33rd over the same period. In the first quarter of this year, 10.4 percent of all Michigan mortgages were past due -- the fourth highest of any state.


The Obama administration has been working to reach out to hard-hit auto communities, creating a task force and appointing a point person to target aid.


The Labor Department is providing job search services to approximately 15,000 auto workers affected by permanent plant closures through emergency grants. It has boosted Small Business Administration loans to auto, boat and recreational vehicle dealers.


As part of his economic stimulus package, Obama helped secure $300 million toward the government's purchase of more fuel efficient vehicles. Last month, he signed into law a program that sets aside $1 billion to provide up to 250,000 vouchers for new car purchases between July 1 and Nov. 1. To qualify, buyers must replace a low-mileage vehicle with a more fuel efficient model.


In May, the president outlined measures to make it easier for the unemployed to pursue a degree or training, and get help paying for it. States often require people who have been laid off to give up their unemployment benefits if they decide to go back to school.


But under the proposed rule changes, the U.S. Department of Labor would ask states to make exceptions during economic downturns so people can apply for training at community colleges or other programs.


Michigan has a program called No Worker Left Behind that allows anyone who is unemployed or was recently laid off to get up to $5,000 a year for two years to pursue a degree or certificate in a high demand field or industry. Any person collecting unemployment may qualify; local Michigan Works! offices decide eligibility.


In just six months in office, Obama has already had a profound impact on Michigan and the auto industry that has for so long fueled the state's economy.


He forced GM and Chrysler into bankruptcy -- but also agreed to invest another $52.5 billion in the automakers and their finance companies -- on top of $23.4 billion the Bush administration lent the industry.


Both automakers exited bankruptcy in just over 40 days -- ahead of schedule -- leaving them with stronger balance sheets than they have had in years.


Obama's auto task force has not been afraid to play hardball. His top auto adviser, Steve Rattner, told former GM Chairman and CEO Rick Wagoner he was out and warned Chrysler that if it didn't reach an alliance with Italy's Fiat SpA the government would allow the Auburn Hills automaker to liquidate.


Teamsters President James P. Hoffa -- a Michigan native who splits time between Oakland County and Washington, D.C. -- said Monday that Obama's support of automakers had won him support in Michigan.


"He did a great job making sure we keep the auto industry alive in this country," Hoffa said.


But some in Michigan have been wary of some Obama proposals. The state's two senators remain on the fence over a proposal to cap greenhouse gas emissions, while Obama has criticized an amendment by Rep. Sander Levin, D-Royal Oak, that would impose a tax on countries that have not agreed to limit emissions. Levin and others worry that companies would be at a competitive disadvantage and might shift production to lower-cost countries.

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iVillage Member
Registered: 12-25-2008
Tue, 07-14-2009 - 10:58am

Ah, but it's easy to understand.

 


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Avatar for claddagh49
iVillage Member
Registered: 07-20-2004
Tue, 07-14-2009 - 2:48pm
I agree with you 100%
Avatar for ddnlj
iVillage Member
Registered: 03-26-2003
Wed, 07-15-2009 - 8:28am

It's easy for him to ask US for patience. It's not HIM losing his job or home. It's not HIM struggling to pay the bills.


I'm disappointed that he is not doing more to bring jobs BACK to America, rather he seems to be simply throwing money at the problems. What's going to happen when the roads projects run out? What about those who aren't construction workers or engineers for the "green" jobs? What about all those countless people who worked in industries that are either completely gone or that are dumping employees who are left with no other marketable skills.


Retraining? That's wonderful, but what happens to people in the meantime? And I question as to whether retraining should be the responsibility of the taxpayer. Had the American factories and manufacturers not left the country our economy would definitely be in better shape because we'd still have a lot more people employed. But those companies have been allowed to walk away from the U.S., and undermine our working class security and, at the same time, wallow in the savings of cheap labor and offshore banking practices.

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iVillage Member
Registered: 03-18-2000
Wed, 07-15-2009 - 9:30am


Manufacturing jobs need 21st century computer

 


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iVillage Member
Registered: 02-06-2009
Wed, 07-15-2009 - 9:31am

For goodness sake, he's only been in office 6 months! Give the man a break!


(not aimed at you Libra :o))


iVillage Member
Registered: 03-18-2000
Wed, 07-15-2009 - 9:51am

Yes! Plus he has the party of "no" opposing everything & making false/distorted claims.


Compare this to an individual getting out of substantial debt. That doesn't happen over 6 mths. possibly more like 6 years.


Obama attacks economic critics


 


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iVillage Member
Registered: 03-23-2003
Wed, 07-15-2009 - 9:57pm

Well, the GOP can take advantage because, basically, some people are ignorant.


Avatar for ddnlj
iVillage Member
Registered: 03-26-2003
Thu, 07-16-2009 - 8:41am

<<>>


It's very easy to say wonderful things are happening in the country when one's personal life hasn't been ravaged by this mess. Here in Georgia, our unemployment rate reached double digits yesterday. We are at the top for foreclosures.

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iVillage Member
Registered: 03-18-2000
Thu, 07-16-2009 - 10:33am

"not some temporary 'feel good' boost that will fall apart with the next crisis."


For a couple of years the last admin. sent out cheques we were supposed to spend to

 


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