Jobs reports

The latest government jobs report is not great and there are four more reports of this kind left before the Nov. 5 election.

Due to the financial crisis in Europe, there is more than a small possibility that some or all of these reports could be discouraging no matter what the Obama administration does.

European and US banks have become increasingly intertwined.  The financial crisis that occurred in 2007 hurt both the US and Europe.  The banks in the United States and Europe lend to each other and they fund big projects across the "pond." 

Because the crisis is so severe, it is bound to have an impact here in the United States.  Money for new investments in business or to keep already existing companies afloat is drying up on both sides of the Atlantic.

Potentially, this could hurt the Obama campaign, but there are ways to handle these jobs reports.  First of all, they could discuss as much as possible other important issues.  As Fareed Zakaria noted, despite the harsh economy, most people are employed.

However, there is not getting around the importance of maintaining a good jobs market.  Therefore, the Obama administration will simply have lay things as they are in a manner which everyone can understand.

While the US economy may still be rough, it is nothing compared to what is going on in much of Europe.   This is because Europe chose a path of austerity -- cutting spending -- similar to what Mitt Romney and the Republicans want to do here.

Europe took the wrong path, but there problems are starting to spill over into our borders.  What we do not want to do is follow this same plan of making deep spending cuts and, in the process, destroying the jobs and consumer market!

The Obama campaign has to make it clear that the Romney/GOP plan will spell doom to an economy that was just beginning to recover.  Another thing that the administration may need to address is how to help stabilize things in Europe.

The president has started talking about this and they really need a plan because the situation there is very serious.  If a nation like Italy, or even France, has problems similar to those plaguing Greece, then the repercussions can be extremely harmful.

It's the economic plan....

The election will be about the economy, but more about the candidate's economic plans than anything else.

Franklin Delano Roosevelt was reelected by a landslide during the depths of the Great Depression because the people knew that the Republicans were responsible for the economic conditions of the time.  In the same, way the GOP is also responsible for today's mess.

However, this fact alone probably would not be enough to reelect President Obama.  FDR won because the people thought he had a superior plan for rebuilding the economy as compared to the Republicans who simply wanted to go back to pro-business, pro-rich policies.

For this reason, the Obama campaign will need to show that they have the better plan for the economy, which is definitely the truth.  However, ordinary people might need this drilled into their heads with a lot of repetition of simple messages.

Romney basically wants to downsize the government in the same way he downsized and folded companies with Bain Capital.

However, we have seen how this type of strategy does not work.  It didn't work when Herbert Hoover tried it during the Great Depression and it has not worked in Europe where most countries have implemented austerity policies since the worldwide economic meltdown began in 2007.

Democrats and progressives need to hammer this message home, not only in order to win in 2012, but to avoid a possible disastrous economic collapse.  Indeed, it looks like the U.S. economy may take another hit due to the turmoil in Europe, so we need someone like President Obama in office to fight for the 99%.

A revealing chart

 The chart below shows the gross internal debt in the U.S. from 1920 to 2010. It is one of many indicators that show the economic predicament of the country and how it really cannot be connected to President Obama.  Internal debt is the money owned to lenders that are based within the country.  It includes the federal and other government debts that is owned to American lenders.

However, it does not include the external debt owned to foreign lenders, which is less around 94% of GDP.

Many people make the mistake of thinking that internal debt is not so bad as external debt.  While this may be the case when things are running smoothly, it is not the case if there is trouble paying the debt.  In the latter situation, it is the American financial system that gets hit hardest with high internal debt.  Both the Great Depression and Japan's "lost decade" were due more to internal debt rather than external debt.

As you can see in the chart, internal debt was high before the start of the Great Depression in 1929. It soared even higher as Americans tried to borrow their away out of the economic malaise.  However, this only led to the market meltdown of 1937-8 in which America sunk to the lowest levels of the Great Depression.

You can also see that in modern times, American internal debt began rising again in the Reagan years and has not abated ever since. Americans are completely addicted to borrowing at the governmental level, business level and especially at the consumer level.

By the time Obama came into office, he had inherited a huge deficit.  And the need for economic stimulus made it difficult not to borrow even more money.

Obama sees "glimmers of hope" in economy

President Barack Obama was optimistic about the economy on Friday seeing "glimmers of hope" in recent economic news.

In a press conference, Obama mentioned a sharp increase in small business loans and progress in the housing market including historically low mortgage rates and increased refinancing.

The president though was cautious about predicting the future and said the economy was still "under severe stress."

Obama sees signs of economic progess

Reuters - ‎3 hours ago‎

By Matt Spetalnick WASHINGTON (Reuters) - President Barack Obama said on Friday the recession-hit US economy was showing "glimmers of hope" despite remaining under strain and promised further steps in coming weeks to tackle the financial crisis.

Video: Obama: Economy Showing 'Glimmers of Hope' The Associated Press

Comment by Dan SteinPres., Federation for American Immigration Reform

Obama, Biden visit DOT as 'shovels hit the ground'

President Barack Obama and Vice President Joe Biden visited the DOT as infrastructure work begins as part of the new economic stimulus package.

"The American Recovery and Reinvestment Act will enable our nation to rebuild, retool and revitalize the vast network of roads, tunnels, bridges, rail systems, airports and waterways that we have long depended on to keep the economy moving and growing," transportation secretary Ray LaHood said.

"Our transportation infrastructure is critically important to our nation's economic health. We need to protect, preserve and invest in it to make sure it can meet the demands we all place on it now and in the future."

The stimulus bill is designed primarily to create new jobs in the face of a massive downturn in the employment picture. Infrastructure projects have been a proven job creator in the past, and Obama had promised to renew American's aging roads, bridges and other public works even before the financial crisis struck last year.

AFP

Obama, Biden Visit DOT

Washington Post - ‎4 hours ago‎

Welcome, President Obama, Vice President Biden. Thank you for coming to the Department of Transportation to mark this historic occasion.

Obama: 'We are seeing shovels hit the ground' USA Today

Emblems to Stamp Projects Funded by the Stimulus Package ABC News

Video: Obama on Economy

Barack Obama talks about the economy, economic security and bankruptcy in Powder Springs, Georgia.



A new television ad airing in Pennsylvania, Ohio, Wisconsin, and Michigan, "New Energy" clarifies Obama's energy policy and responds to false attacks by John McCain and the Republican party.

Barack Obama on Economy

Sen. Barack Obama talks about the economy with labor leaders on June 19, 2008 in Washington, DC.



Today, in a meeting with the nation's Democratic governors, Barack said:

You deserve and you need a partner in the White House and a president who understands our prosperity doesn't come from Wall Street or Washington. We should be investing in the skills, the human capital, the education and well-being of your constituents.

You've gotta solve problems; ultimately the buck stops with you. You've gotta balance your budget. If you've got a badly drafted piece of legislation, you're the ones who have to live with it and as a consequence you end up spending less time posturing and trying to score ideological points and more time trying to govern. We need that same approach in Washington.

Also, check out Barack's economic plan.

Barack Obama: Plan to Strengthen the Economy

From barackobama.com:

Plan to Strengthen the Economy

“I believe that America's free market has been the engine of America's great progress. It's created a prosperity that is the envy of the world. It's led to a standard of living unmatched in history. And it has provided great rewards to the innovators and risk-takers who have made America a beacon for science, and technology, and discovery…We are all in this together. From CEOs to shareholders, from financiers to factory workers, we all have a stake in each other's success because the more Americans prosper, the more America prospers.”

— Barack Obama, New York, NY, September 17, 2007

At a Glance

• Provide Middle Class Americans Tax Relief
• Trade
• Technology, Innovation and Creating Jobs
• Labor
• Protect Homeownership and Crack Down on Mortgage Fraud
• Address Predatory Credit Card Practices
• Reform Bankruptcy Laws
• Work/Family Balance

Speak your mind and help set the policies that will guide this campaign and change the country.

• Present your ideas

Watch the Video

The Problem

Wages are Stagnant as Prices Rise: While wages remain flat, the costs of basic necessities are increasing. The cost of in-state college tuition has grown 35 percent over the past five years. Health care costs have risen four times faster than wages over the past six years. And the personal savings rate is now the lowest it's been since the Great Depression.

Tax Cuts for Wealthy Instead of Middle Class: The Bush tax cuts give those who earn over $1 million dollars a tax cut nearly 160 times greater than that received by middle-income Americans. At the same time, this administration has refused to tackle health care, education and housing in a manner that benefits the middle class.

Barack Obama's Plan

Provide Middle Class Americans Tax Relief

Obama will cut income taxes by $1,000 for working families to offset the payroll tax they pay.

• Provide a Tax Cut for Working Families: Obama will restore fairness to the tax code and provide 150 million workers the tax relief they need. Obama will create a new "Making Work Pay" tax credit of up to $500 per person, or $1,000 per working family. The "Making Work Pay" tax credit will completely eliminate income taxes for 10 million Americans.
• Simplify Tax Filings for Middle Class Americans: Obama will dramatically simplify tax filings so that millions of Americans will be able to do their taxes in less than five minutes. Obama will ensure that the IRS uses the information it already gets from banks and employers to give taxpayers the option of pre-filled tax forms to verify, sign and return. Experts estimate that the Obama proposal will save Americans up to 200 million total hours of work and aggravation and up to $2 billion in tax preparer fees.

Trade

Obama believes that trade with foreign nations should strengthen the American economy and create more American jobs. He will stand firm against agreements that undermine our economic security.

• Fight for Fair Trade: Obama will fight for a trade policy that opens up foreign markets to support good American jobs. He will use trade agreements to spread good labor and environmental standards around the world and stand firm against agreements like the Central American Free Trade Agreement that fail to live up to those important benchmarks. Obama will also pressure the World Trade Organization to enforce trade agreements and stop countries from continuing unfair government subsidies to foreign exporters and nontariff barriers on U.S. exports.
• Amend the North American Free Trade Agreement: Obama believes that NAFTA and its potential were oversold to the American people. Obama will work with the leaders of Canada and Mexico to fix NAFTA so that it works for American workers.
• Improve Transition Assistance: To help all workers adapt to a rapidly changing economy, Obama would update the existing system of Trade Adjustment Assistance by extending it to service industries, creating flexible education accounts to help workers retrain, and providing retraining assistance for workers in sectors of the economy vulnerable to dislocation before they lose their jobs.

Technology, Innovation and Creating Jobs

Obama will encourage the deployment of the most modern communications infrastructure to reduce the costs of health care, help solve our energy crisis, create new jobs, and fuel our economic growth.

• Support Job Creation: Barack Obama believes we need to double federal funding for basic research and make the research and development tax credit permanent to help create high-paying, secure jobs. Obama will also make long-term investments in education, training, and workforce development so that Americans can leverage our strengths - our ingenuity and entrepreneurialism - to create new high-wage jobs and prosper in a world economy.
• Invest in U.S. Manufacturing: The Obama comprehensive energy independence and climate change plan will invest in America's highly-skilled manufacturing workforce and manufacturing centers to ensure that American workers have the skills and tools they need to pioneer the first wave of green technologies that will be in high demand throughout the world. Obama will also provide assistance to the domestic auto industry to ensure that new fuel-efficient vehicles are built by American workers.
• Create New Job Training Programs for Clean Technologies: The Obama plan will increase funding for federal workforce training programs and direct these programs to incorporate green technologies training, such as advanced manufacturing and weatherization training, into their efforts to help Americans find and retain stable, high-paying jobs. Obama will also create an energy-focused youth jobs program to invest in disconnected and disadvantaged youth.
• Boost the Renewable Energy Sector and Create New Jobs: The Obama plan will create new federal policies, and expand existing ones, that have been proven to create new American jobs. Obama will create a federal Renewable Portfolio Standard (RPS) that will require 25 percent of American electricity be derived from renewable sources by 2025, which has the potential to create hundreds of thousands of new jobs on its own. Obama will also extend the Production Tax Credit, a credit used successfully by American farmers and investors to increase renewable energy production and create new local jobs.
• Deploy Next-Generation Broadband: Obama believes we can get broadband to every community in America through a combination of reform of the Universal Service Fund, better use of the nation's wireless spectrum, promotion of next-generation facilities, technologies and applications, and new tax and loan incentives.
• Protect the Openness of the Internet: Obama supports the basic principle that network providers should not be allowed to charge fees to privilege the content or applications of some web sites and Internet applications over others. This principle will ensure that the new competitors, especially small or nonprofit speakers, have the same opportunity as big companies to innovate and reach large audiences.
• Invest in Rural Areas: Obama will invest in rural small businesses and fight to expand high-speed Internet access. He will improve rural schools and attract more doctors to rural areas.

Labor

Obama will strengthen the ability of workers to organize unions. He will fight for passage of the Employee Free Choice Act. Obama will ensure that his labor appointees support workers' rights and will work to ban the permanent replacement of striking workers. Obama will also increase the minimum wage and index it to inflation to ensure it rises every year.

• Ensure Freedom to Unionize: Obama believes that workers should have the freedom to choose whether to join a union without harassment or intimidation from their employers. Obama cosponsored and is strong advocate for the Employee Free Choice Act, a bipartisan effort to assure that workers can exercise their right to organize. He will continue to fight for EFCA's passage and sign it into law.
• Fight Attacks on Workers' Right to Organize: Obama has fought the Bush National Labor Relations Board (NLRB) efforts to strip workers of their right to organize. He is a cosponsor of legislation to overturn the NLRB's "Kentucky River" decisions classifying hundreds of thousands of nurses, construction, and professional workers as "supervisors" who are not protected by federal labor laws.
• Protect Striking Workers: Obama supports the right of workers to bargain collectively and strike if necessary. He will work to ban the permanent replacement of striking workers, so workers can stand up for themselves without worrying about losing their livelihoods.
• Raise the Minimum Wage: Barack Obama will raise the minimum wage, index it to inflation and increase the Earned Income Tax Credit to make sure that full-time workers earn a living wage that allows them to raise their families and pay for basic needs.

Protect Homeownership and Crack Down on Mortgage Fraud

Obama will crack down on fraudulent brokers and lenders. He will also make sure homebuyers have honest and complete information about their mortgage options, and he will give a tax credit to all middle-class homeowners.

• Create a Universal Mortgage Credit: Obama will create a 10 percent universal mortgage credit to provide homeowners who do not itemize tax relief. This credit will provide an average of $500 to 10 million homeowners, the majority of whom earn less than $50,000 per year.
• Ensure More Accountability in the Subprime Mortgage Industry: Obama has been closely monitoring the subprime mortgage situation for years, and introduced comprehensive legislation over a year ago to fight mortgage fraud and protect consumers against abusive lending practices. Obama's STOP FRAUD Act provides the first federal definition of mortgage fraud, increases funding for federal and state law enforcement programs, creates new criminal penalties for mortgage professionals found guilty of fraud, and requires industry insiders to report suspicious activity.
• Mandate Accurate Loan Disclosure: Obama will create a Homeowner Obligation Made Explicit (HOME) score, which will provide potential borrowers with a simplified, standardized borrower metric (similar to APR) for home mortgages. The HOME score will allow individuals to easily compare various mortgage products and understand the full cost of the loan.
• Create Fund to Help Homeowners Avoid Foreclosures: Obama will create a fund to help people refinance their mortgages and provide comprehensive supports to innocent homeowners. The fund will be partially paid for by Obama's increased penalties on lenders who act irresponsibly and commit fraud.
• Close Bankruptcy Loophole for Mortgage Companies: Obama will work to eliminate the provision that prevents bankruptcy courts from modifying an individual's mortgage payments. Obama believes that the subprime mortgage industry, which has engaged in dangerous and sometimes unscrupulous business practices, should not be shielded by outdated federal law.

Address Predatory Credit Card Practices

Obama will establish a five-star rating system so that every consumer knows the risk involved in every credit card. He also will establish a Credit Card Bill of Rights to stop credit card companies from exploiting consumers with unfair practices.

• Create a Credit Card Rating System to Improve Disclosure: Obama will create a credit card rating system, modeled on five-star systems used for other consumer products, to provide consumers an easily identifiable ranking of credit cards, based on the card's features. Credit card companies will be required to display the rating on all application and contract materials, enabling consumers to quickly understand all of the major provisions of a credit card without having to rely exclusively on fine print in lengthy documents.
• Establish a Credit Card Bill of Rights to Protect Consumers: Obama will create a Credit Card Bill of Rights to protect consumers. The Obama plan will:
  • Ban Unilateral Changes
  • Apply Interest Rate Increases Only to Future Debt
  • Prohibit Interest on Fees
  • Prohibit "Universal Defaults"
  • Require Prompt and Fair Crediting of Cardholder Payments

Reform Bankruptcy Laws

Obama will reform our bankruptcy laws to protect working people, ban executive bonuses for bankrupt companies, and require disclosure of all pension investments.

• Cap Outlandish Interest Rates on Payday Loans and Improve Disclosure: Obama supports extending a 36 percent interest cap to all Americans. Obama will require lenders to provide clear and simplified information about loan fees, payments and penalties, which is why he'll require lenders to provide this information during the application process.
• Encourage Responsible Lending Institutions to Make Small Consumer Loans: Obama will encourage banks, credit unions and Community Development Financial Institutions to provide affordable short-term and small-dollar loans and to drive unscrupulous lenders out of business.
• Reform Bankruptcy Laws to Protect Families Facing a Medical Crisis: Obama will create an exemption in bankruptcy law for individuals who can prove they filed for bankruptcy because of medical expenses. This exemption will create a process that forgives the debt and lets the individuals get back on their feet.

Work/Family Balance

Obama will double funding for after-school programs, expand the Family Medical Leave Act, provide low-income families with a refundable tax credit to help with their child-care expenses, and encourage flexible work schedules.

• Expand the Family and Medical Leave Act: The FMLA covers only certain employees of employers with 50 or more employees. Obama will expand it to cover businesses with 25 or more employees. He will expand the FMLA to cover more purposes as well, including allowing workers to take leave for elder care needs; allowing parents up to 24 hours of leave each year to participate in their children's academic activities; and expanding FMLA to cover leave for employees to address domestic violence.
• Encourage States to Adopt Paid Leave: As president, Obama will initiate a strategy to encourage all 50 states to adopt paid-leave systems. Obama will provide a $1.5 billion fund to assist states with start-up costs and to help states offset the costs for employees and employers.
• Expand High-Quality Afterschool Opportunities: Obama will double funding for the main federal support for afterschool programs, the 21st Century Learning Centers program, to serve a million more children. Obama will include measures to maximize performance and effectiveness across grantees nationwide.
• Expand the Child and Dependent Care Tax Credit: The Child and Dependent Care Tax Credit provides too little relief to families that struggle to afford child care expenses. Obama will reform the Child and Dependent Care Tax Credit by making it refundable and allowing low-income families to receive up to a 50 percent credit for their child care expenses.
• Protect Against Caregiver Discrimination: Workers with family obligations often are discriminated against in the workplace. Obama will enforce the recently-enacted Equal Employment Opportunity Commission guidelines on caregiver discrimination.
• Expand Flexible Work Arrangements: Obama will create a program to inform businesses about the benefits of flexible work schedules; help businesses create flexible work opportunities; and increase federal incentives for telecommuting. Obama will also make the federal government a model employer in terms of adopting flexible work schedules and permitting employees to request flexible arrangements.

Barack Obama's Record

• Housing: In the U.S. Senate, Obama introduced the STOP FRAUD Act to increase penalties for mortgage fraud and provide more protections for low-income homebuyers, well before the current subprime crisis began.
• Predatory Lending: In the Illinois State Senate, Obama called attention to predatory lending issues. Obama sponsored legislation to combat predatory payday loans, and he also was credited with lobbying the state to more closely regulate some of the most egregious predatory lending practices.
• American Jobs: Barack Obama introduced the Patriot Employer Act of 2007 to provide a tax credit to companies that maintain or increase the number of full-time workers in America relative to those outside the US; maintain their corporate headquarters in America; pay decent wages; prepare workers for retirement; provide health insurance; and support employees who serve in the military.

For More Information about Barack's Plan

Read the plan
Read the plan for small businesses
Read the plan to protect homeownership and crack down on mortgage fraud
Read the Speech

http://link.brightcove.com/services/link/bcpid1351322015http://www.brightcove.com/channel.jsp?channel=353512430

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