Democrats don’t really have a good way to spin the poor May jobs report and the stall speed of the latest attempt at recovery. I thought Alan Krueger, the Chairman of the Council of Economic Advisers, was fairly restrained in his remarks. But Krueger also hints at what the Administration and other Democrats brought up, that we’re living under divided government, and Republicans must shoulder some of the blame for not agreeing to things like the American Jobs Act, to accelerate the pace of recovery.
In a trip to a Honeywell factory in Minnesota Friday, Obama responded to the dismal news with a speech demanding Congress take action on a variety of measures, including infrastructure investments and aid to state and local governments to prevent teachers, firefighters and police from being laid off, that Republicans have thus far opposed [...]
“Look, we can’t fully control everything that happens in other parts of the world — disturbances in the Middle East, what’s going on in Europe,” Obama said, “but there are plenty of things we can control here at home. There are plenty of steps we can take right now to help create jobs and grow this economy.”
White House officials reinforced the message throughout the day. Labor Secretary Hilda Solis appeared on CNBC, warning that “Congress needs to take action” to accelerate job growth. Alan Krueger, chairman of the Council of Economic Advisers, released a statement urging Congress to pass more components of the president’s American Jobs Bill that he announced last year.
There’s no question that we would be in a better place now than we are if the American Jobs Act passed in full. There’s also no question that we PASSED a substantial portion of the American Jobs Act when we passed the payroll tax cut and unemployment insurance extension earlier in the year. Both of those were in the $450 billion AJA, and those two elements totaled around $160 billion (around $28 billion for the initial two-month extension and $130 billion in the year-long extension), the majority of it not paid for. So we did get that pop into the economy, though it obviously wasn’t enough. When Jared Bernstein says that, as a nation we failed to take out “recovery insurance” by letting those other stimulus measures sit, he’s right, but we should acknowledge that 35% of the American Jobs Act, in dollar terms, was passed.
What ended up passing, furthermore, included something from the President’s proposal that has ended up causing hundreds of thousands of long-term jobless to lose unemployment benefits in a bid to reduce the costs of the program on the government.
In addition, it’s not like the President has foregrounded the infrastructure and state fiscal aid pieces of the American Jobs Act much since late last year. He has a “To-Do List” out now for job creation that consists of mainly tax breaks for businesses and expanding home refinancing options. You’ll notice that the aforementioned Jared Bernstein’s to-do list bears no resemblance to this. The American Jobs Act is a memory, there’s an election campaign on, and we’re not going to hear anything else about stimulus or a jobs crisis.
Just to echo Bernstein, we do need fiscal stimulus, we do need to get unemployment benefits back to the long-term jobless, we do need to avoid automatic budget cuts at a time of depressed demand, and most important given the realities of Congress, we do need the Federal Reserve to do their jobs:
The Fed needs to step up. I know…I’ve argued there’s not a lot monetary policy can do on its own right now. My point is that interest rates are already low, investors are pretty flush with cash, and anyway, investment is the one part of GDP that’s been pretty reliably growing. Still, all that said, another round of quantitative easing is called for. After all, the FOMC themselves have been saying that if things get worse, they’ll pull that trigger. Well, things are worse.
This is a light version of what economists say is necessary. Some have argued that the Fed needs to set an expectations game on inflation, accepting a higher target to boost employment growth. Others would say it’s time to give the money printer a run. The point is that the status quo is a miserable failure, and the Fed needs to act as an independent body and follow their mandate.
Basically every policymaker in Washington is failing to serve the American people. We’ll see finger-pointing for the next several months, but that’s the truth of the matter.




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What can the dems say David. Obama and the dems had no sense of urgency for the 99% for 2 years of complete control. They pissed it away doing what? In fact I think I read here (perhaps one of your articles Dave) that in ’09, team obama was ok with 8% unemployment (so long as they weren’t among the 8%).
The AJA is a political stunt that BO knows the repubs won’t pass. This game being played by obama and the dems is not just unravelling but appears to be blowing up in their faces. Talking populist while enacting conservative policies eventually catches up to you.
The U.S. is making a great effort to create jobs — in other countries, like India.
May 8, 2012, Hillary Rodham Clinton, Secretary of State
New Delhi, India
“I want to highlight a new Millennium Alliance initiated last year by USAID, our development agency, and the Federation of Indian Chambers of Commerce and Industry that is supported by the Government of India. This public-private partnership will help fund development solutions that deliver sustainable results for people and can be shared across the world.”
What is the Millennium Alliance?
December 20, 2011
“Today USAID is announcing a partnership with the Federation of Indian Chambers of Commerce and Industry (FICCI); one of the largest microfinance organizations in India, Basix; and an Indian venture operation, Infinity Innovation Fund. The focus is to source and scale development solutions being developed and tested in India that will benefit vulnerable populations across the country and the rest of the world.
“The Millennium Alliance: An India-US Innovation Partnership for Global Development will raise $50 million in seed capital, grants, loans, guarantees, and technical support for base of the pyramid solutions.”
It’s too bad the U.S. citizens don’t qualify for USAID programs — they just pay for them in other countries. Base of the pyramid solutions? Not for us, thank you very much.
The U.S. government, what did we do to deserve it. I hope India shares.
The Fed does need to get involved for the sake of ppl who need jobs, American Corporations are setting on Two Trillion Dollars in cash and they are not investing. Typical me first culture that is America! please check out my column on the need for Progressives to not sit it out in 2012. http://www.ericnewsdaily.blogspot.com
The message is: Progressives should hold their noses and vote for Obama. But why vote for someone who doesn’t represent your views?
It’s not polite to promote your blog in every post at FDL.
It would be more accurate for the Dems to point to a certain slovenly dressed, smartest guy in the room former Treasury secretary in the Harvard economics department. How’s that right-sized stimulus working for you now, Larry?
The chickens are coming home to roost. Wait until SCOTUS shuts down all or part of ACA. This is fast becoming a losing hand.
Congress is doing what it can. Just be patient. A few more anti-abortion bills and we’ll be at full employment.
“…we should acknowledge that 35% of the American Jobs Act, in dollar terms, was passed.”
We should also acknowledge that 17.5%, or half of that 35% (I can’t figure it in dollar amounts, sorry), being the payroll tax half, was extracted from moneys traditionally supporting Social Security now and in the future. Many of us really really didn’t want that to happen and will be very upset if it happens again.
Not that we matter.
But I was coming back here to really praise you, David, for wonderful work this week. That still applies.
American jobs are in China, Mexico, etc. How much stuff this country consumes that is made overseas? But we keep closing trade deals, and Obama is already planning more trade deals. This asshole will not be happy until every manufacturing job is shipped out of the country, and everyone is priced out of health insurance. Not to fear, he has health industry’s back. The main reason why Europe is going through the convulsion is for the same reason: no jobs. These jobs are not in Asia.
Why is all the solutions that can actually work are not only avoided but not discussed? How is it also even allowed that the administration can claim its trying to create jobs and solve the problem when its doing pretty much everything to not solve the problem and Congress is helping?
It’s a double-whammy, because talking populist while doing the full Ronnie not only eventually catches up with you, but it provides a (false) narrative under which populist policies were enacted yet failed, thus leading to further conservative policies!
In fact, not one truly populist policy has been enacted during this administration, nor has this administration pushed for a single truly populist policy.
Thus, at a time when the policies of FDR should be looked to, instead the Overton Window moves steadily right, and when that window permits Wall St to run the country and allows the president to kill whom he chooses, that window has moved into full-bore fascism. Yes, the f-word, the word which must not be spoken.
Yet they never mention that the “gridlock” of the first two years occurred with massive Democratic majorities in both Houses of Congress.
Funny that. Why someone not in the know might look at that and wonder if the Democrats didn’t really WANT gridlock.
Never fear though, as these people are ignorant. That’s what the “Democrats” all over these intertoobz tell us. Those believing that are just ignorant of how the real world in Washington works. (nevermind the fact that real world and Washington in the same sentence is stretching things waaaaaaaayyyyyy out of reality).
It’s all the Republicans’ fault. It’s the Republicans’ fault when they have majorities in both Houses and the White House, and it’s the Republicans’ fault when the Democrats have majorities in both Houses and the White House.
Yeah, right. It’s those of us that beleive the Democrats WANTED gridlock that are ignorant. Cause the logic of that last paragraph is unquestionable.
Morans.
Fast becoming a losing hand? The man has all but lost it.
Hrmmfh!!!
The only thing the Fed can do is buy Treasury bonds and lend money to banks.
How does that translate into jobs? In a debt recession, it doesn’t.
On the other hand North Dakota has jobs and demand to burn.
The “full Ronnie.” LOLOL
x2
Maybe we should cede monetary policy to North Dakota. LOLOL
I assume you understand that engaging in wholesale, unfettered truth-telling will put you way down on the call list for “Meet the Press,” let alone “Morning Joke.”
Hey, I’m just tryin’ to help out…
Speaking just for myself as an investor, I am not flush with cash. I am maybe two, two and a half, years from being homeless if I can’t find decently paid employment. I assume there are lots of investors like me, small but worthy (investor) potatoes who are being crushed in this economy.
that’s not as crazy as it sounds
they have their own state bank
So drill your north forty and see if there’s oil. Won’t make you virtuous but it will make you rich.
Maybe if they buy enough treasury bonds some people will use the money to buy stocks? I don’t think it works too well.But maybe it will stir some confidence.
So let see if I get this right.
0 is at a Honeywell plant right after the ceo says corp. pay to much taxes.
The ceo is on the cat food team from hell.
Then there’s this little bit of info on HW taxes.
http://www.ctj.org/taxjusticedigest/archive/2011/11/tax_dodger_honeywell.php
http://www.financialexpress.com/news/india-to-account-for-30-of-honeywells-global-outsourcing/83165/
http://www.freerepublic.com/focus/f-chat/1977944/posts
0 other good friends like the ceo of ge Main Street is doomed.
It’s not just about jobs, it’s also about the extreme malaise that afflicts our country. The physical and mental health of Americans is deteriorating. People are so desperate to tune-out from the constant barrage of bad news and fear-mongering from the MSM (I watched Diane Sawyer last week. Just about every other sentence from her puckered mouth included words like “dangerous,” “terrorist,” “enemy,” “extremists” and on and on) that they’re ingesting drugs, alcohol and crappy food at record rates. Suicides are up.
People understand that there is one government/law for the rich and another for everyone else and they have lost faith. This is just the tip of the proverbial civil unrest iceberg.
I blame Obama for much of this mood. He has done absolutely nothing to quell the anxieties of regular Americans. In fact, I would argue he has made the situation worse when he burnished his Trojan Horse creds and abandoned the little guy once he became president.
I’m sorry, but “looking forward” does not equate to overlooking fraud and criminal activity by the MOTU. People simply don’t trust Obama anymore. Yes, Romney is an idiot but Obama is a known entity now and what people know many don’t like.
If the Fed buys Treasuries, how does that put money in my pocket?
Nice summary.
it doesnt unless you sell the tsy. Even then you already had the money, so you have to ask if you want to take the money and risk it in this shitty stock market or just put in in a time deposit.
Oddly reducing the corp tax might not be a bad idea but do you want a one way deal? give them a tax cut now and they give you nothing? This would have to be part of a fairly comprehensive change in the tax code that would likely take months to work out but the thugs and dems could never do it. So it is a non starter.
And right after she signed off, she stepped into her chauffeured limo which immediately hauled her over to a trendy Manhattan restaurant for fine dining.
You bet, Diane: It’s tough all over…
The Democratic partisans seem to be falling over each other to see who can blame the Republicans for the stalling out of the recovery, saying that the Republicans sabotaged the economy. There wouldn’t have been any opportunity for sabotage had Obama proposed a stimulus that wasn’t two thirds tax breaks and too small by half. And the bogus American Jobs Act was what, about 80% tax breaks? Reaganite policies can’t pull a country out of a depression. The Democrats should have listened to Paul Krugman and Joseph Stiglitz and applied pressure to Obama.
I am concerned that Obama apologists have only a single response to everything, that is, blame it on the Republicans. Yes, they’re execrable, but Obama owns this economy. We are in game theory territory these days – the Prisoners dilemma. The Republicans and the Democratics are in this together. If we prisoners don’t cooperate against the two party system, we lose.
Yup.
The latest issue of The New Scientist great articles on The Prisoner’s Dilemma and the unraveling of Greece (“Grexit”) and the possible consequences for the world.
Yes indeed. But I live in a red state. I am relatively free to do as I like.
I see that the Jag-Off in Chief was in Minnesota today. I guess his handlers didn’t think it would be prudent for President Milquetoast to stop in Wisconsin. Of course now that he’s in campaign mode he’s going to show the rubes how tough he really is. It’s all show folks.
The Democrats pointing at the “mean ole Republicans” for the economic malaise is doomed to failure. Obama’s original sin was in not promoting and fighting for a much larger stimulus which many left economists said was necessary. The dick in the WH chose poorly.
Exactly, it doesn’t. I used to buy Treasuries. With the decline in interest rates in the Clinton admin, I stopped. It was pointless for a small investor like myself to buy at a premium. The Fed buying Treasuries from banks makes no sense at all for 99%ers. In fact, it puts the 99%ers further on the hook for banks.
The day for storming the “Winter Palace” approaches.
Always with blaming Obama instead of Congressional Republicans. What is that about? Obama gives the Left a lot of things they want and all this blog can do is piss on his leg. Pathetic.
Corporations are making all-time profits and it’s time for them to recycle that money through the economy by hiring and giving raises. Short of that the government can’t do much when Republicans refuse to raise taxes.
There, the rich and the Republicans are at fault.
This idea that it’s the Bush-Obama economy is nonsense. We had a similar situation during the Clinton years. The economy ran the same way (sans a few financial things like CDSs and CDOs) and it grew because they cut the deficit and made bond markets happy. Today they’re fat & happy and still won’t invest. What’s Obama to do, shoot ‘em? Not in a Democracy.
The Senate should have gotten rid of the filibuster and the Independents in this country should have forgiven Obama for the individual mandate and we could have moved on much better. Now, we may lose the health care law and have a Republican administration which would water down Dodd-Frank (if not eliminate it) and we’ll be right back to 2007 with a constant recession and nobody in charge willing to change the system to really fix it. Do you think Romney is gonna propose corporate executive pay limits? A minimum wage increase? Higher taxes on the rich? Fuggedaboutit!
You can slam Obama all you want, but he’s out only chance (in the WH) to get things done. In Congress we’re still screwed if the Dems don’t get back in charge of the House and hold the Senate.
If Republicans get in charge again and with the American household budget in this weak condition and the system we have (and the Repubs will create) we are in for some very rough going.
Actually, Mark, we will be much better off if the Repukes take back the White House. In that scenario, Democrats will actually fight against some of the horrible policies that they now support because they are Obama’s policies. So, yeah, they won’t actually be able to pass any of their own legislation, but they might be able to block or water down some of egregious items (cf GW Bush v Social Security). Most of the legislation passed in this Administration has been utter crap. And if you want to point to ACAH, my response is: utter crap.
We at least get to see a Greek sneak preview of the US coming attractions. Have ya’ll noticed the protection equipment worn by the Greek rioters? They damn near look professional!
We currently are in “some very rough going,” and the blame is Obama’s. Worse, he’s pushed for conservative policies (which will inevitably fail, by definition) under a populist mantle. So, we get failed conservative policy which will be perceived as failed left wing policy.
Obama isn’t just an awful president, he is insidious, because everything he does tarnishes the left, even though he’s to the right of Nixon on practically every issue. Obama has moved the agenda further to the right than any Republican president could ever hope to do.
What shooter242 said. Stop pointing fingers at the Fed. There’s nothing the Fed can do, in fact, Bernanke’s low interest rate policy is HURTING the economy by taking interest money out of the economy, and pushing investors into riskier assets like commodities, driving up the price of food and fuel.
There is something that Obama can do — he can mint trillion dollar platinum coins to pay down the national debt, perfectly legal under existing law.
Then go to Congress and ask for a clean vote on eliminating the regressive FICA tax for both employees and employers — fund SS/Medicare with platinum coins instead. Republicans would be hard pressed to vote against a tax decrease, especially since the platinum coins eliminate the deficit issue.
The platinum coin strategy has been blogged on FDL by Joe Firestone.
http://www.cnbc.com//id/43931430
In response to Mark H @ 39
What complete and utter horseshit. Uninformed horseshit.
The first two years of your great and mighty Obama had massive majorities in both Houses of Congress. And there is absolutely, positively NO WAY to blame the health care law, or the mandate, on Republicans when NOT A SINGE ONE voted for the bill. It was passed, and signed, with 100% Democrats.
And are you going to blame the Republicans and the rich for Obama declaring he can assassinate American citizens with no judicial due process AND for signing a bill that ended habeus corpus, a basic human right according to the UN??? Or do you support those and are happy to give Obama the credit he deserves??
There was NOTHING stopping the Democrats from getting rid of the filibuster in his first term, passing a real stimulus, and passing real health care reform, without an individual mandate, EXCEPT the Democrats themselves.
Yet you would have us “forgive” them for any and all transgressions??? You still going to feel the same way when it’s your son picked up by the FBI because he happened to be in the wrong place at the wrong time, renditioned to Saudi Arabia or Israel and tortured, and held for years without any rights to a lawyer or court appearance??
Anyone forgiving this un-American asshole posing as President and his Party are the ones that have no fucking clue about what’s really going on.
Excellent point. Either don’t vote of vote for the Repubs so that the Dems have the opportunity to stand for something. They will no longer get a pass.
Dodd-Frank is already so watered down I could do 50 laps in it.
All seems factual. Does that mean we line up and vote all republicans this time? It sure did not work out well in 2010 or before 2009. Does that mean we let Romney and friends control the agenda and whatever cuts they want, including the supreme court? I detest those things you wrote about but do I trust that Pres Romney will repeal them or not continue our culture of war or even increase it? Will Romney care about the unemployed and extend insurance or pass another stimulus and one not aimed at his cronies?
I would change your last sentence to say anyone trusting either of these assholes or their parties has no fucking clue what is going on.
Just wanted to say that was an excellent post. People need to take off the partisan blinders. Those blinders limit their view and keep them from actually seeing what is happening. Obama got the stimulus he asked for. And Obama hasn’t done much of anything on the economy other than talk up austerity/deficit reduction and wait around for the arrival of the Confidence Faery since. We have Obama’s version of Republican economic policies, and people shouldn’t be surprised that we get an Obama version of Republican economic results.
Krugman predicted that this would occur, that whatever weak stimulative effects of the 2010 December deal with the Repugs would wear out in 2012, just in time for the election. (And of course, that the Repugs would not honor the parts that they could later break).
I have a co-worker that said the Obama administration was done for once he picked his advisors (Sumners, Geithner, and the other Wall Street tycoons) instead of the college professor eggheads like Krugman (as FDR did). He has been proved prescient. The Wall Street tycoons are just as clueless now as they were in 2008/2001/1980/1929.
-stewartm
You must excuse us, we’re still celebrating the
implementation of truly universal health care,re-enactment of Glass-Steagal,union card check,strengthening and enhancing Social Security,ending the Bush tax cuts,prosecuting war crimes and Wall Street crimes,ending the wars,downsizing the military,ending claims of the unitary presidency,transitioning to green energy sources, and many other “accomplishments” that we’re a bit goofy.Obama sez he can kill any of us, anytime he wants, for “national security” reasons without justification just because he sez so. (Dick Cheney and Steve Addington’s hearts are warmed, I’m sure). But provide us real healthcare? Keep homeowners from being foreclosed? Heck, even ending the Bush tax cuts when all he had to do was NOTHING in 2010 to do just that? OOh, weak lil’ Obama can’t manage that. “Too hard”, stopped by those mean nasty Repugs (who were in a minority and whose filibuster privileges could have been revoked by Senate Dems at any time, another canard).
-stewartm
It’s not the Congressional Republicans who claimed the Obama Stimulus would keep unemployment below 8% nor did the Congressional Republicans subsequently claim “Recovery Summer.” If you wish to engage in tribalism that’s up to you, but it gets away from the big picture and is disingenuous.
N Dakota is living under an asset bubble. Once the asset is gone, so are the jobs.
My view entirely. I really think that was key to the wrongheaded trajectory this administration took. However, there is also something perverse about this president as well. About a year ago I watched a documentary regarding him including his term as law review editor. He picked three Federalists to be on his team, but did not pick a black woman with progressive credentials. He hung out with these far right guys as well. I am not saying that you should never learn from others who don’t vote as you do. Remember about keeping your enemies closer? Or maybe you simply want malice towards none. BUT this little incident pointed to an enduring trait of his: make yourself look liberal in comparison whereas in reality you are moving things to the right. In any event, there is simply no doubt in my mind that Obama and Krugman had some personal enmity between them which has kept Obama from taking Krugman’s advice to heart, even if mixed with his own advisors. Our country is far the worse for it.
The economy is right on course to do what the elites want, crash right before the election of SHITTY MITTY the Mormon/Morlock. Obomber’s short pathetic reign is over. The Banksters are finished with Barry now that they’ve gotten everything they want from him. In their view he’s failed in his attempt to get a club membership.
Whether Obama wins this election is irrelevant to his membership in the small club of the elites: he’s in, and been in for years. That’s how he got into the WH in the first place.
And the observation at 53 is correct. Obama cultivated the liberals, the women, the minorities to get the votes for president of the Law Review then buddied with the conservatives–whom he had re-assured before the election he wouldn’t do anything to upset their apple carts. Obama’s defining characteristic is sneakiness. The man is a behind the back assassin and if you’re not in with the in crowd, he can not be taken at his word. He is entirely a main chance opportunist, by any means to his end.
liberalarts, although I had no knowledge of Obama’s membership in that club, the evidence was there after he got elected.
Add “backstabber” to sneaky. In regard to opportunist; when he was a teenager in a club that passed “joints” around, he would call out “intercept”, grab the joint, and smoke out of turn. That was both sneaky and opportunistic.
MarkH, drowning men always grasp for straws.
HIs plan to get re-elected is in tatters now. His Conserv. pals no longer need his services. His job as a place holder for them is over and he will be rewarded with a place on the ex-Pres. lecture tour a library and a nice fat pension etc. for the rest of his young life. Since I don’t believe he has a conscience it will never bother him that he essentially put a knife in the back of the millions that supported, worked and voted for him and had great expectations for his failed Presidency. Obama will be considered next to BV$H 2 one of the worst Presidents in US history. Nobody expected much from BV$H 2 and he lived up to the low expectations for his long reign in spades. Barry on the other hand had it all, but chose to betray the American people. I hope he rots in hell. For him its all roses from here on. For the rest of us its going to be hell to pay under an increasingly radical and vindictive fascist GOP.