Obama reckons with economy at CBS News town hall

President Barack Obama smiles during a break at a CBS News Town Hall Meeting on the economy, Wednesday, May 11, 2011, at the Newseum in Washington.

/ AP Photo/Carolyn Kaster

In an effort to make his case on the economy to a broad audience, President Obama sat down with CBS News this week for an hour long town-hall meeting at the Newseum in Washington.

The president's town hall appearance, which was taped Wednesday afternoon and broadcast on CBS News' "The Early Show" Thursday morning, came as the economy continues to struggle to emerge from recession. Gas prices have risen nearly a dollar since the year began, and now hover around $4 per gallon; unemployment stands at nine percent. And while Mr. Obama's saw an increase in his overall approval rating in last week's CBS News/New York Times poll tied to the killing of Osama bin Laden, his approval rating on the economy was just 34 percent - the lowest level of his presidency.

The town hall included a mix of questions from CBS News moderators Harry Smith, Erica Hill and Rebecca Jarvis and questions from an audience made up of Washington residents, college students, people who have participated in CBS News polls and CBS News viewers.

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Hill opened the questions by noting that when it comes to the economy, "sometimes it can feel like for every two steps forward, it's one step back." She asked Mr. Obama how Americans can get into a more positive mindset.

The president responded by stating that "you're absolutely right that people still aren't feeling" the economic recovery.

"I think a lot of people just feel like the American dream, the core notion that if you work hard and you act responsibly that you can pass on a better life to your kids and your grandkids -- a lot of folks aren't feeling that anymore," he said. "And so, that's why it's so important for us to focus not only on recovery from recession, but also dealing with some of those problems that existed before the recession so that middle class families are able to see their incomes go up, their savings go up, they can retire with dignity and respect, they can send their kids to college."

He later said the recovery has been "uneven," with sections like manufacturing doing relatively well while others lag. "And it's gonna take us several years for us to get back to where we need to be," he added. "But the important thing, though...is we're moving in the right direction."

A member of the audience then asked the president about what he planned to do about gas prices. He responded by stressing domestic production - rebuffing a Republican criticism - and noting that "we're producing more oil now than any time since 2003."

"Even after what happened in the Gulf, we're still saying to oil companies, 'You can drill, as long as you do it safely,'" he said. "We don't want to go through another oil spill like we had last summer. But we are gonna give you permits if you show us that you've got a good plan for containing it if something goes wrong." Mr. Obama then argued for the importance of a long-term energy policy and pointed to increased fuel-efficiency standards for cars, which he said would save 1.8 billion barrels of oil.

Karin Gallo told Mr. Obama about her difficult situation - she had lost her job and is seven-months pregnant and building a house - and asked him what he would do if he were in her shoes.

The president responded by stressing the importance of government workers - Gallo worked at the National Zoo - and pointed to Gallo's situation to argue that budget-cutting decisions have meaning.

"These are not abstract questions," he said. "And I think Karin makes it really clear that there are real consequences when we make these decisions." Mr. Obama later promised to speak to Gallo after the taping.

Jarvis read a question that came in over email asking how employers can become comfortable with hiring at a time of economic uncertainty. Pointing to improved jobs numbers, the president argued that employers are feeling more confident, adding that "the key is to recognize that some of the jobs that left aren't going to be coming back, but we've got to be creating new industries and new jobs here in America." He pointed to the clean energy industry to support his point.

Jarvis pointed to the fact that wages are stagnating even as companies make record profits. "If this isn't the right circumstance for raising wages and really going out and employing new people," she asked, "what will be?"

The president said in response that companies must "start placing their bets on America."

He pointed to government efforts to stabilize the economy and financial system, stating, "companies have benefited from that, and they're making a lot of money." He suggested they owed it to taxpayers to invest in "American workers and American products."

Another questioner told Mr. Obama that she owes more on her house than it is worth and asked him, "do you have any plans to help improve the housing market so hardworking Americans like myself don't lose their homes?"

Mr. Obama said the housing market, along with gas prices, is "the biggest headwind" facing the country. He pointed to loan modification programs that have helped "underwater" homeowners, prompting Smith to state that a lot of the administration's efforts haven't worked well.

"Well, it's not that it hasn't worked," the president responded. "The problem is, is that the need is so great. So it's like you have a huge pothole, and you only have so much gravel. And if you're talking about-- $5 trillion worth of home value, and a program that only has a few billion dollars, then there are a lot of people who are not going to be helped. And so what we're trying to do is to figure out how can we get the banks to do more."

Watch the full town hall below:

Special coverage: CBS News Town Hall on the Economy, with President Obama

[tjsroch]

Question. Have you ever read "Truth in Money" that describes the debt based US monetary system we put in place in 1913 with the Federal Reserve system, where ALL money is borrowed into existance and carries interest? It describes the total public and private debt growth as a compounding interest problem that can be simulated by making a graph of one dollar borrowed in 1913 and having an average of 6% interest (not paying principle or interest) so it compounds untill the present day. The one dollar is the principle and the usury is the capitalized interest.

The graph is flat for about 40 years, then starts a slight turn up. It is noticably turning higher for about the next 20 years and then begins an ever steeper climb untill the present day where the capitalized interest is beginning exponential growth. The authors say this simple graph is nearly a perfect representation of the total US debt, both public and private. It is clearly NOT SUSTAINABLE.

1. How would you fix the US monetary system that is growing the money supply by one method...debt?
2. Do you believe the FED (controlled by bankers) makes decisions in the US citizens best interest?

[lebaron686]

This moron knows just about as much on how the economy works to his presidential skills. Can't wait until this dog and pony show ends in 2012.

[skeezix06]

Bush was a liar and irritating to listen to. I stopped listening to Bush early in his term.

Obama? Another liar. I stopped listening to him after he took the public option/universal healthcare off the table. I am currently looking forward to voting third party. I refuse to reward the repubs or dems for what they've done to this country.

[rwwmobley]

Great to see Harry Smith on the morning show.

[RONPOUL]

Dear Mr. President,
MY PROPOSAL PUBLISHED ON YOUR SITE: Health Care Stories (*) LONG TIME. OUR INVENTION REDUCES HEALTH CARE COST BY SEVERAL $ BILLIONS PER YEAR, PROVIDES REDUCTION IN MEDICAL ERRORS AND SAVES LIVES OF THOUSANDS PEOPLE. THIS PROJECT HAS MULTI BILLION GLOBAL MARKET. PROBLEM THAT MANUFACTURES BOYCOTT MY INVENTION.

MILLIONS AMERICAN PEOPLE PAY HUGE EXTRA MONEY FOR THEIR HEALTH INSURANCES. I RECEIVED 635 EMAILS FROM YOUR TEAM SINCE MAY 2008 AND SENT SEVERAL FAXES AND REGISTERED LETTER TO WHITE HOUSE, BUT DO NOT RECEIVED REPLY TO MY PROPOSAL YET. ASK YOU AGAIN TO SUPPORT OUR LABORATORY PROJECT, BECAUSE IT IS VERY USEFUL TO ORDINARY AMERICAN CITIZENS.
(*)
http://stories.barackobama.com/healthcare/stories/99543

[wdove]

Here are just a few notes from the CBS Town Hall With Obama Today. I hope everyone will take time to see it. What was clear to me from listening is: 13.7 million Americans are still unemployed. American wages have essentially went down over the last 10-years. On the other hand, last year, CEOs gave themselves on average of a 27% raise, stocks are up 10% above the record all time high on average, companies are making record profits, profiting from our bail-out, with 2-trillion dollars of cash to spend. If this isn't the right conditions to hire and get Americans back to work, when? (Rebecca Jarvis asked) President Obama replied, "That is my point when talking to companies." American companies as a whole, simply aren't reinvesting those profits and trillions of dollars in cash flow back in the American Labor Force as needed. President Obama said, "The issue is not uncertainty, but they got to place their bets on America, invest in American workers and products." Is sounds like more of the same, corporate creed and as one lady in the audience said, we have gone beyond corporate greed to gluttony.

Here is one of the links:

http://www.cbsnews.com/video/watch/?id=7365817n&tag=watchnow

[MrIvan1]

I tried to post this as a question to the president, never got it in. Placing it on the record here for comments...

Mr President:

It is clear from your continued cooperation with the interests of the Neocon movement that you intend to do nothing to oppose their gradual destruction of the American Economy. Your continued taxation policies, your continued efforts to shuffle around the costs of health care instead of attacking the research and development costs to truly lower the costs, and the fiasco of nominating Guitner--former head of the NY Fed, the most corrupt center in the financial sector--to Treasury, will all serve only to guarantee your continued membership in the Bilderbergers, while doing nothing to stave off the financial collapse of the United States.

I challenge you to do ONE thing, if there is an honest bone in your body. You promised efforts to counter the oil monopolies which control energy in this country. Here is a game plan:

Hydrogen is the most common element in the universe. We have unlimited supplies available to us and it can be readily produced by hydrolysis. It can be BURNED by internal combustion engines such as those in our cars, and the technology to convert cars to burn either gasoline OR hydrogen at the flip of a switch is available right now, at a cost of a few hundred dollars per vehicle. I am NOT talking about fuel cells, but BURNING THE HYDROGEN GAS AS A FUEL.

1. Subsidize the conversion of cars by tax credits and direct financing. Make available that conversion technology thruout the country. Add further tax credits to auto manufacturers for producing cars off the assembly line that can use both gasoline and hydrogen as fuels.

2. Subsidize homeowners who wish to install hydrolysis units in their homes, as well as the creation of such units set up to be usable by private citizens who wish to produce hydrogen to fuel their own cars. The same can be done with filling stations who wish to sell hydrogen gas. The conversion there would echo the conversion to unleaded gas which we did effortlessly in the '70s.

3. Subsidize the installation of solar or wind powered generators in the homes, as well as mandating the installation of links to the grid whereby anyone can place an alternative energy source in their homes and connect it to the grid to sell back the unused energy.

All this technology is available today. It would go a LONG way to cleaning up our air and get us out from under the oil cartels. We could become independent of imported oil in just a few years.

There are only two things standing in the way: The Oil companies, and the lack of a President with the cahones to stand up to them.

[us-a3rdworldcountry]

It is time for everyone within the United States to start demanding facts as well as demanding changes be made that will benefit the United States of America by bringing jobs back to the US in order to revive the US Economy plus force US Businesses to hire US citizens and put extreme limits on how many HIB's can be hired. But knowing the Big Boys in Business, they will cry, pout and sulk until the U.S. government dangles the infamous gold carrot with the word GREED outlined in diamonds on the carrot that dangles over their heads to entice them further into the land of greed just like huge 3rd party vendors did in order to replace US workers with cheap labor. The US Government knows what is going on. Therefore, the US Government is also responsible and every US citizen and US worker affected by the huge loss of jobs should be outraged and focused on making drastic by replacing the majority of the Government from the President on down.

[wdove]

More than ever before the middle class, the poor, the working class, all American who care about the struggles and plight of all Americans need to get off the sidelines and come together and make our voices heard. We need to come together as one and put our differences aside for the common good. That's the only way we all win and advance the cause of peace and prosperity. There are too many people suffering and doing without in this country and creed, coruption and gluttony is the root cause.

[us-a3rdworldcountry]

Each and every person in the US can take control and begin creating change for the benefit of the U.S by replacing the majority of US Government from the President on down, in additon to purchasing only US made products by checking products in order to find US Made Product Label for each and every product. If you do not see the US Made Product label, then go to the store manager and request,reinforce and demand US made product(s) and never accept anything less. It does not matter if it is a local store or an internet web site, just ask, reinforce and damand and you will receive US made products. Plus continue creating change by also requesting, reinforcing and demanding US Made Services and US Owned Services. The continuous increase in US Products and Services purchased will create vast new jobs within the US and it will bring back jobs to the United States of America and will the process of restoring the US Economy. Plus when calling into a help desk or service center of any kind where you are transferred to an international country, do not provide them with your name nor contact information nor any other confidential information and immediately request to be transferred to the United States. If they start to ask any questions, all you have to do is repeat again "Please transfer me to the United States" and they are required to transfer you to the U.S. If they refuse to transfer you or they state that they do not have a US Based Office, then hang up on them and keep trying to call back until you reach someone within the US and if this does not happen, then keep calling back until your request to be transferred to the US has been provided and you have been transferred. Stand up for America and only buy US Made Products and Services.

[us-a3rdworldcountry]

In regard to: CBS News Town Hall with President Obama. President Obama completely ignored the woman's plea for assistance in regard to what financial organizations are doing to individual who are refinancing their home which seems to include questionable financial practices. Wow, now that's a first for a money hungry financial institution bound up in an unquenchable thirst for greed.
.
Also, wondering why jobs statistics provided by all news media do not include specific information which is essential in determining the facts about the total number of jobs available and total number of jobs filled within the US by provided facts such as how many of the jobs that were filled by businesses were filled with US Citizens, Permanent Residents, EAD's and H1B's. The current job numbers & statistics sounds good and looks good, but are they really and why isn't everyone demanding to see the breakdown on people being hired according to four (4) specific areas: US Citizen, Permanent Resident, EAD's and HIB's. plus list the name of each company that hired workers during the specific time frame. If Companies refuse to provide such information then their refusal will be a huge red flag that they are trying to hide information.