The Obama 2012 presidential campaign, which has now officially sprung to life, confronts a vexing political puzzle. The unemployment rate is plummeting. After the March jobs report release, White House economic adviser Austan Goolsbee pointedly noted that the full percentage-point decline over the past four months is the largest such drop since 1984.
That statistical coincidence dovetails neatly with this David Axelrod-endorsed narrative: Just as Ronald Reagan bounced back from a nasty first-term recession to win re-election in 1984, a jobs rebound will mean four more years for Barack Obama. Got that, MSM? Obama 2012 = Reagan 1984. Now shut your laptops and run along.
But as the Obama political shop has surely noticed, the unemployment rate isn’t the only politically important number on the decline. Simultaneously, their boss’s approval rating has fallen from 51.0 percent on Jan. 24 to 47.4 percent today, according to the RealClearPolitics poll average. A large-sample Quinnipiac survey out last week had Obama at 42 percent. And a recent Reuters-Ipsos poll found that Americans’ confidence in the way the country is going has slumped to its lowest point of Obama’s presidency with 64 percent believing the nation is on the wrong track. Even as more jobs are being created, so are doubts about Obama.
Keep in mind that forecasting models suggest a president with a 50 percent approval rating on Election Day has an 80 percent chance at re-election vs. just a one-in-three chance for an incumbent with a 45 percent rating. And polling analyst Nate Silver notes that every incumbent with an approval rating of 49 percent or higher since World War Two won re-election, while every candidate with a rating of 48 percent or lower lost.
Morning in America 2.0, Mr. Axelrod? More like Threat Level: Midnight. And here’s why: While jobs are growing, incomes are not. And income growth — or the lack of it — political scientists agree, is the economic variable with the most impact on national elections. Strong growth in real disposable personal income led to huge victories for Reagan in 1984, Richard Nixon in 1972 and Lyndon Johnson in 1964. Weak or negative growth doomed Jimmy Carter in 1980, George Bush in 1992 and John McCain in 2008.
Real disposable personal income fell 0.1 percent in February. Average hourly wages were flat in March, and have grown at a 1.8 percent annualized rate over the past three months, according to the Economic Policy Institute. With inflation running around 2 percent, this means the average American is falling behind, his standard of living dropping. As the Brooking Institution figures things, between October 2010 and February 2011, real hourly and weekly earnings in the private sector fell 1.1 percent.
Even Goolsbee knows those numbers won’t improve a whole lot unless the unemployment rate moves sharply lower. Yet the official White House economic forecast has unemployment averaging 8.6 percent in 2012, not much below the current 8.8 percent rate. (The broader U-6 rate, which includes discouraged workers and part-timers who want full-time gigs, is a sickening 15.7 percent.) JPMorgan economist Michael Feroli thinks a combination of so-so economic growth, a vast pool of unemployed, higher energy prices and the expiration of the 2011 payroll tax cuts means income growth will likely remain “tepid” going forward.
So for now, consider Obama a favorite to win a second term — most presidential incumbents do — but only by the narrowest of margins. If incomes stay stagnant — and if Republicans can nominate someone with a strong, passionate and specific pro-growth economic message — Election Night 2012 could be a long one.

I work at a very big software company that all of you have heard of — there is only one reason why this company hires Indian IT firms — PRICE!!!!! In India and China, there is plenty of SLAVE LABOR and the U.S. Govt. has decided to equalize U.S. JOBS and Salaries with these SLAVE LABOR conditions to do one thing: support a CEO to average worker pay gap of 400X (see below.) Don’t listen to anything else that the companies say, it’s about price. We could easily train Americans to develop these skills on the job in about three months. Price includes training and having to deal with workers who require health benefits and everything else that a person working should get.
There’s a big difference from the old days when American people cared about one another and nowadays where greed rules the day: while corporations have robbed pension funds that were committed to, banks have falsely appraised real estate for the past 10 years and aren’t held to account for the fraud when the borrowers are held to the falsely valued loans, and executives get paid 400 TIMES the average worker — see the following article:(http://www.opednews.com/article s/The-Wide-Divide–You-Are-B-by-Steve-Ell iott-080616-912.html), Americans continue to vote for the creators of these schemes: Republican schemers. It’s crazy how you are shooting yourself in the feet, ladies and gentlemen. Please get a clue. Yeah, Obama is not the best and is having a hard time, but if you think cutting more decent jobs is the answer, watch out because I can replace ANY U.S. Worker, and I mean any, (skilled or not, doctor, lawyer, IT, CEO, McDonald’s person, whatever) with a Chinese or Indian worker who will cost 5% of your total salary — want to compete with that? And I mean ANY job.