Community | June 22, 2009 | 13 comments

Missing jobs pose challenge for Dems

source: http://www.msnbc.msn.com/id/31482577/ns/politics-washington_post/

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ClipsFC
Despite signs that the recession gripping the nation's economy may be easing, the unemployment rate is projected to continue rising for another year before topping out in double digits, a prospect that threatens to slow growth, increase poverty and further complicate the Obama administration's message of optimism about the economic outlook.

The likelihood of severe unemployment extending into the 2010 midterm elections and beyond poses a significant political hurdle to President Obama and congressional Democrats, who are already under fire for what critics label profligate spending. Continuing high unemployment rates would undercut the fundamental argument behind much of that spending: the promise that it will create new jobs and improve the prospects of working Americans, which Obama has called the ultimate measure of a healthy economy.

"Our hope would be to actually create some jobs this year," Obama said in an interview with The Washington Post in the days before taking office.

Obama has defended his economic approach — which includes the $787 billion economic stimulus plan and record investments in health care, alternative energy, education and job training — as necessary to stabilize the shaky economy and point the way to job growth.

So far, the White House has counseled patience even as the political debate surrounding its economic policies grows more urgent. Officials point out that job growth will not come until robust economic expansion takes hold, which they expect will happen as stimulus funding works its way through the economy. Still, the flagging job market is likely to stir calls for further stimulus efforts as polls show voters growing increasingly wary of federal spending in the wake of a costly series of financial- and auto-industry bailouts and amid current efforts to expand health-care coverage to the uninsured, which is estimated to cost at least $1 trillion over the next decade.

With many forecasters projecting unemployment to remain above 10 percent next year and not return to pre-recession levels of roughly 5 percent for years after that, Obama is likely to be confronted with defending the effectiveness of his economic policies as the nation endures its worst employment situation in a generation.
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13 comments // Missing jobs pose challenge for Dems

  • cybexg
    • 0
      cybexg  

    • What history shows is very debatable. What market theory indicates is that markets perform very poorly with paradigm changes. We are facing at least two if not three of such changes. Some portion of the deficit spending is directly aimed at allowing us (USA) to benefit rather than suffer from said changes.

      Furthermore, there is substantial evidence that previous deficit spending during downturns is what enabled the USA to emerge in a leadership roles when the downturn ended.

    • 2 years ago
  • fun_size
  • rockstarmillionaire
    • 0
      rockstarmillionaire  

    • The unemployment rate is already in double digits and Depression era percents. Deficits are what make it worse and longer and Obama is continuing down the same path as Bush in his stimuluses. We're not going to begin to come out of this until he stops with the deficits. History shows that when saving and production is encouraged through higher interest rates and no government spending we come out of depressions. Artificially lowering rates and creating easy credit encourages malinvestment. The government needs to stop getting people drunk and step out of the picture and let the free market balance things out like it has in previous depressions. Until Obama discontinues his current monetary policies he will continue to make this depression longer and worse.

    • 2 years ago
  • neocongo
  • rockstarmillionaire
  • rick2740
  • rockstarmillionaire
  • neocongo
    • 0
      neocongo  

    • When the interest rate is as low as it can go, and taxes are the lowest in the developed world, the only option to create jobs is stimulus, deficit spending. It is not meant to be a permanent solution, and it isn't going to fix things over night. History has shown that when an unregulated Wall Street and banks fuck things up, we must accept deficit spending until things are back on track. If we start worrying about the deficit now, we will be enjoying this jobless rate for a loooong time.

    • 2 years ago
  • jh64487
  • rick2740
  • twitterbot
  • rick2740
    • 0
      rick2740  

    • About The Recession, by Richard R. Blackston

      I have a question for the directors of Wal-Mart, which is, as we all know, a multi-billion dollar store chain. Why can’t they bail out our beautiful country? I know Wal-Mart can do this if they really wanted to, they certainly have the buying power and moreover, if Wal-Mart did bail America out, shoppers everywhere would revere the store chain! In doing so, everyone wins! So my question to Wal-Mart is, don’t you think it’s time you give back to this country, after all this country has given to you? Without a doubt, if I had a billion dollars, I would bail America out! So I ask you Wal-Mart, why don’t you or why can’t you do this for America?!
      Furthermore, America has many resources which can be used to fix the deficit! I ask for the best country, pop, and rock stars to pull together and make CDs plus perform concerts to raise money to help bail our beautiful country out of its debts! It is time to stop pointing fingers at where the problem began, and start banning together while being creative toward fixing the problems, before it’s too late!
      I call on the richest people in our country as well as the most famous. Lets take action to save our heritage before it's too late! The saying is true, there is some trash on the road, now someone should clean it up!

      Sincerely,
      Richard R. Blackston

    • 2 years ago
  • mgerlach22
    • 0
      mgerlach22  

    • But wait...I thought when Obama forced the stimulus down our throats, we HAD to accept it so the unemployment rate would stay below 8%. Obama is a liar. What does he care though...it's not his money.

    • 2 years ago
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