Dismal jobs numbers raise the stakes for Obama

AP Photo/Carolyn Kaster

As President Obama comes face to face with the sober realities of the economy, his task of jumpstarting growth and encouraging voters to stay optimistic becomes all the more daunting.

The numbers are grim: The economy added no new jobs in August, the Labor Department said today. The White House's own Office of Management and Budget released its economic forecasts yesterday, and including economic data that's come in since June, the OMB expects the unemployment rate to hover close to 9 percent through all of this year and next.

The president has just 14 months to assure voters that they'll be better off during his second term. It's clear the White House is aware of what a challenge that will be. In a White House blog post today, Katharine Abraham, a member of Mr. Obama's Council of Economic Advisers, called the latest unemployment figures "unacceptably high." Next week, Mr. Obama will deliver a speech to lay out a series of initiatives to spur economic growth -- he'll give the speech before a joint session of Congress, underscoring its gravity.

White House Press Secretary Jay Carney told reporters yesterday that if Congress adopts the president's proposals, they should be able to help bring unemployment under 9 percent.

"The president will come forward with specific proposals that by any objective measure would add to growth and job creation in the short term," he said. "And that will be part of a broad package that reflects his commitment to grow the economy now and to build a foundation for economic growth for the future to ensure that we win the future."

Even if Washington could turn the economy around, it's unlikely to do in a way that's significant enough to keep Mr. Obama's bid for re-election from struggling under the weight of high unemployment figures. It's often noted that no president since World War II has been reelected with unemployment above 7.2 percent.

That has left liberals clamoring for the president to push for bold new stimulus when he delivers his speech next week. Washington Post columnist Eugene Robinson wrote this week that voters re-elected Franklin Delano Roosevelt when there was 17 percent unemployment because they "understood they were living through a global economic crisis that wouldn't be solved overnight."

The liberal grassroots group MoveOn.org commissioned a poll showing that the president's 2008 supporters who disapprove of the way he's handling the economy think he's too willing to compromise with Republicans and are seeking bold action.

It's clear, however, that if Mr. Obama tries to put forward any liberal policies, they'll face a head-on collision with Republicans. House Speaker John Boehner this morning tweeted that "job growth continues to be undermined by the triple threat of higher taxes, more failed 'stimulus' spending, & excessive federal regulations."

So far, the president appears focused on putting forward a moderate agenda he thinks can win bipartisan support -- measures such as extending unemployment insurance and extending the payroll tax cut. But some are wondering whether today's worse-than-expected statistics will empower the president to take a different approach.

"If today's job report (zero new jobs in August) doesn't push O toward a bold jobs plan he'll fight for, nothing will," tweeted liberal economist Robert Reich.

[fxr60]

Facts since Obama took office: When Bush left office : Gas-$1.83 gal., Crude oil, European Brent (barrel) $43.48, Crude oil, West Texas barrel: $38.74, Gold: London $853.25, Corn, No.2 yellow, Central IL $3.56, Soybeans: No 1 yellow, Il $9.66 Unemployment: 7.6%, National debt: 10 Trillion, now 16 Trillion in 2 1/2 yrs. Take this last item: In the last two yrs, we have accumlated National debt as fast as during the rest of our entire nation's history. Over 27 times as fast. Metaphorically speaking, if you are driving and a car rockets past you in the left lane 27 times faster, it would be doing 7,555 MPH !!!!

[forsanity1]

In order to understand facts, you need to understand CONTEXT.

You do not.

Oh and on the FACT part: The national debt is NOT $16 trillion today.

Too bad you don't have a leg to stand on, it makes holding up your false prophets so much harder.

[honestpatriot]

forsanity1 is correct. The president does not set global commodity prices. Global forces such as economic growth and demand for resources in China and India have much to do with global prices for oil and other commodities. And remember the 2008-9 global financial crisis and recession -- the deepest in postwar U.S. history? It began before Obama took office, and accounts for much of the increase in unemployment and debt. True, Obama should be doing more to push for job creation. But the obstructionist Republican House of Representatives will continue to block him every step of the way.

[southpaw99]

My job was outsourced to Taiwan just before Mr. Obama was elected.
I think its hardly his fault that our unemployment rate is caused by him.
People are just looking for an easy one to blame when the problem is, generally US business doesn't care about employing Americans.

[forsanity1]

Unemployment is not something that has an engine in government. Sure, the fuel is something government can enhance or degrade -- but damn it folks, get on the right page for once.

The private sector hires. The private sector fires. The private sector is where employment is a win or a loss.

The only place where government is like the private sector in employment is when the government (federal, state or local) IS the Employer.

Right now -- for the last several months -- private sector employment has been offset by public sector job losses! Yes, the Republican "austerity/cut government spending/kill unions/fire teachers etc." plans have tanked the employment GAINS in the private sector.

See how it works? Cut spending = cut government jobs (make sure to tell the lemmings thay are not "real" jobs" = the UI rate rises or is stagnant = blame the Democrats, especially the one guy whose job you really really want, the POTUS!

Look to the states for the uprising. This bogus anti-American GOP wave has to be stopped. The Dems (including the POTUS) are so not perfect, but they are far better for the average American than any Republican running for any office.

Sure, care about the presidency, but REALLY, REALLY care about your local and state houses and the Congress of the USA! Fight where it matters. No president can get his/her agenda passed without that "dance partner"! Period.

[TobyPogi]

Lets be honest here, and look back when,where and how this economy
started to fall.most of these critics to Mr.Obama suffers amnestia, not all these problems President Obama's fault, sure he made mistakes and failed, but created good policies too, President George Bush is a good person,but his presidency was a failure and did nothing to detect and prevent these mess,not a good exit for him. Mr. Obama did his best and failed too, well at least he tried, It's not easy, it take years to fix these problems. Whoever wins come election, is facing a gigantic problem and can't be resolve unless no GRID LOCK in Washington. Critis and political pundits aren't helping, it make more worse.

[msimamaji]

Why should anybody be surprised? Since the so-called end of the recession, 600,000 employees in the public sector have lost their jobs, from the federal all the way down to the local level. The current crop of Republican governors have been firing thousands public employees to provide tax cuts for the rich. As a result, the 17,000 jobs gained in the private sector have been off-set by the 17,000 job losses in the public sector.*

Don't blame Obama for the unemployment. We are witnessing unemployment because the Republicans are getting what they wanted: tax cuts for the rich and massive layoffs of school teachers, librarians and fire-fighters - not to mention a lot of employees in FEMA.

The Republican game plan is simple. Demonize public employees. Fire them. Then when they join the ranks of the unemployed, blame the unemployment rates on Obama. Incidentally, when the GOP takes power, they will eliminate all minimum wages laws, unemployment insurance, and OSHA. Americans will be fight each other for jobs with third world wages, no health insurance or fringe benefits, or even minimal safety standards. The rich will get richer, the middle class disappear.

That's your future, when the GOP wins. Enjoy.

*Source.ThinkProgress, September 2. I also quoted Matt Yglesias' analysis on the same website.

[seenoland]

State and local (and especially Fedral) job rlls have been bloated from years of cronyism. Make work jobs for friends, campaign workers, union payoff, nepotism and vote buying. Rolling back the corruption is a good thing, not "Republicans providing tax cuts"...unless of course tax cuts for all of us suckers who have been stolen from to pay for the corruption. Get an honest, productive job and quit your griping.

[minoriabc1]

The problems of the economy and deficit can not all be blamed on one president, or one congress. We need to work together to get out of this mess. All options must be on the table. We need both sides to come together now. If you are not part of the solution you are part of the problem. Join a grass root movement that wants to force our politicians to work together to make tough choices. Sign the pledge at http://truefiscalconservative.blogspot.com/p/pledges.html and get involved.

[cbs4111]

Don't worry, Obama will come up with a really good jobs plan this time. He's been thinking about it for round after round.

It'll involve another round of Federal stimulus. Never mind that will require borrowing another trillion dollars from China, money that we all will have to pay back, with interest.

It'll involve selling the interstate highways to the Unions who will turn them into toll roads in exchange for a promise to repair them.

It'll involve education grants which will be made available to everyone, including illegal aliens.

It'll involve another round of Cash-for-Clunkers, the wildly unsuccessful program that took used cars, the only cars the poor can afford to buy, off the market. The twist will be that it'll be houses this time instead of cars. Trade your old house in, the government will bulldoze it for you, and give you a rebate on a brand new house.

It'll have another Green initiative, except this time rather than going back to windmills, Obama will propose going back to horse-drawn plows. That'll create lots of jobs...for horses and stablemates.

[forsanity1]

You are going to be pretty sick to your stomach after you eat those words next Thursday.

How about a bit of truth to calm your digestion of the effects of pure propaganda?

[dantom39]

He is in over his head but you folks in the media will spin spin spin spin and try to make this look good.

[RobAla]

The horrible health care law will impose huge expenses and additional regulations on American business. Instead of using profits to expand business (resulting in hiring workers), many businesses are having to put the money aside for this nonsense.

Since coming into office, President Obama and other progressives had added massive regulation on business. This oppressive burdening of business has all but choked the life out of private sector business. If you add the terrible economic uncertainty caused by this administration (all the hope and change stuff), it is a wonder that private sector business is doing as god as it is (and it is bad).

All the massive stupid bailouts and bogus stimulus packages that President Obama did over the past 2.5 years, only added massively to the national debt. He now admits that the "shovel ready jobs" were not shovel ready jobs. More Washington stimulus, using taxpayer money that we do not have, is not the answer. Government created jobs, are based on a false concept that we can confiscate wealth from the American taxpayers and efficiently and effectively establish a real jobs market. All government created jobs spend way more in taxes than it takes in (it is a sinkhole), and many times a huge portion of that tax money is wasted in massive government administrative overhead - rather than actually the money going to workers. It is the worst form of job creation there is.

President Obama and other Washington progressives have to take their boot off the throat of private sector business for jobs to come back. It is just that simple. President Obama refused to use the tried and proven methods of turning the economy around, and the economy hasn't turned around.

To those who continue to state that Reaganomics did not work, here are some figures:

Forbes 07/27/11: Louis Woodhill
"Whether in Greece or in the U.S., the impact of government policies shows up first and fastest in total employment. Judged by jobs, Reaganomics worked. During the first two years of the Reagan recovery, total employment increased by 7.2 million. Given that Obamunism is the exact opposite of Reaganomics, one might expect that it would produce a terrible jobs situation — and it has.

In terms of total employment, the U.S. lost 0.7 million jobs during the first 24 months of Obama's recovery. The nation has never before had an economic expansion where total employment after two years of recovery was lower than it was at the end of the recession. In June 2011, America had 2.9 million fewer people working than when Obama was inaugurated. (By the same point in Reagan's presidency, our total number of jobs had increased by 0.7 million, equivalent to 1.0 million jobs after adjustment for today's higher population.)"

[renonv5]

Those numbers raise the stakes for each and every one of them, not just Obama.

[nuttyworld]

He is underqualified for the job and has filled his cabinet with the same. 2012 can't come fast enough.