James Pethokoukis

Politics and policy from inside Washington

Obama 2012 and the May jobs report

June 3, 2011

I don’t think the terrible May jobs report means the Obama presidency is doomed anymore than I thought the killing of OBL meant re-election was in the bag. But another 18 months of economic muddling through – high unemployment, stagnant wages, dead housing, slow GDP growth – would certainly make the GOP nomination one worth winning. Like REALLY worth winning – let’s put it that way. And the history of economies after bank crises show the “muddling though” scenario is a common one.

But it is also interesting to note that White House economists told me previously that they didn’t think the U.S. economy would fall prey to that trap. No wonder the administration used so much political capital on health and financial reform rather than on job creation in 2009 and 2010. My chats with folks from the White House always showed them to be eternally  optimistic — eternally and overly optimistic is turns out. They were as surprised as anyone that Recovery Summer 2010 was a bust. And Summer 2011 is looking to be about the same. Yet there’s no sign the administration will change course and adopt some common-sense growth policies such as cutting taxes on corporations and capital, slashing regulation and offering a big downpayment on debt reduction.

Comments

Obama is an amateur who should have no hope of winning in 2012. He’s been exposed, and has no clue on the economy. He is still doing more damage and not creating any jobs. The continued uncertainty, along with a refusal to exploit any domestic energy sources will keep us in a tailspin until after November 2012.
http://www.associatedcontent.com/article  /7824656/uncertainty_and_its_effect_on_ the_economy.html?cat=9

Posted by theillinoisguy | Report as abusive
 

I’d forgotten about last years joke from Obama…”Recovery Summer”! I suppose they were likely going to force the same hoax on the nation this year, but UNEMPLOYMENT shooting up to 9.1% and a failing recovery would make that an even more cruel joke than their hoax of last year. Obama has such contempt for average Americans that they think they can fool us all of the time. Obama’s extreme left wing agenda, his massive corrupt wasted spending, his trillions upon trillions in debt have all been a total failure. Obama has made everything worse! Obama has easily overtaken Jimmy Carter as the most clueless and worst President of the last 100 years. Fool me once shame on you, fool me twice shame on me!!!!

Posted by valwayne | Report as abusive
 

The usual nonsense from the right wing.
Cut taxes.
They have been cut for 7 years.
Corporations are sitting on tons of cash. It is not taxes that are the problem and Mr. Pethokoukis knows it and is just spouting the usual company line.
The housing bubble will take YEARS to correct itself. It is not a stock market bubble, it is real dollars that people have lost and there is no fix except time.
Obama may run out of time but I have yet to hear any coherent argument from right wing pundits like this guy that will fix it or raise market values again.
This is the drag on the economy and it accounts for 3-4% of the unemployment figures at least.
I would like an honest conservative to explain how cutting taxes for corporations will improve an oversupplied housing market.
The housing collapse is just market capitalism working like you guys always argue it should.
Oversupply and no demand is killing the housing market. It was Bushes only real economic achievement, which was nothing but cheap money.
Tax cuts had nothing to do with it and you know it.

Posted by dwarr | Report as abusive
 

Obama has loaded up his administration with global warming fanatics who are chomping at the bit, waiting for Obama to get re-elected so they can inflict their green jihad on the fossil fuel industry. This means higher energy prices and lower economic growth.

These people are on the record as wanting gasoline and electricity prices to at least double in order to make their solar panels and windmills more competitive.

The is called depression era economics.

Invest in companies manufacturing wood burning stoves.

Posted by Parker1227 | Report as abusive
 

So lets see, I sign up to post and post an opinion that is not malicious, nothing, just disagrees with the right wingers you guys use for your editorials and you don’t print it.
Nice, fair and balanced site you have here.
I will pass it on that Reuters is in fact, Fox news in disguise.
I ma still waiting for a reply as to what to do with a broken housing market from the experts here, but I guess just ignoring posts and printing posts that agree with the premise is what “journalism” here, is all about.

Posted by dwarr | Report as abusive
 

If the Dems had let it alone, maybe putting through one of their usual programs designed to help some small part of their constituency the economy would have been repaired by now. Instead, they saw the opportunity to do everything they wanted, a grab-bag of opportunity most of which was costly and all of which was wasted.

Now we are left with a spiraling deficit and no reserve in the economy.

Posted by cogsys | Report as abusive
 

The lunatics are in charge of asylum here.

The theoreticians living in the White House are working very hard to remake the USA as they think it should be.

They are refusing to accept the widely known economic theory that Government regulations and taxes have direct bearing on the state of economy.

Only a fool would keep driving even after learning that he is going in the wrong direction.

Only a greater fool would believe that we are going in the right direction and it’s just taking little longer.

Posted by biggoofer | Report as abusive
 

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