A fair number of Democratic congressmen are rightfully worried about joining the ranks of the jobless. They're up for re-election in only 11 months, which means they'll be forced to campaign in a hostile political environment. When the unemployment rate hovers in the neighborhood of double digits, voters typically lash out at the party that controls the White House - as Ronald Reagan discovered in 1982, when double-digit joblessness cost the Republicans 26 House seats.
And it's doubtful that Barack Obama said anything yesterday to calm Democratic nerves.
At his job creation forum (which probably won't spark the creation of many jobs), he stressed mainly that "our resources are limited" - a reference to the deep budget deficit, to the spending commitments for big-ticket, over-the-horizon domestic programs, and to the new undertow of Afghanistan. Indeed, this Obama remark could easily have been uttered by a Republican president: "While I believe the government has a critical role in creating the conditions for economic growth, ultimately true economic recovery is only going to come from the private sector." And even though House Democrats insist that creating jobs should be the top priority - and that $100 billion in leftover bank-bailout money can be tapped for that purpose - Obama's budget team wants to spend that money on reducing the deficit instead.
By the way, the new jobless rate, announced this morning, is 10 percent, a drop of two-tenths of a point. In translation, we only lost 11,000 jobs in November (the lowest monthly loss since the recession began in December 2007). Democratic lawmakers probably won't take much solace in the new stat. What's more important is that Obama said so little yesterday about what he would do to create jobs. The forum mostly seemed like an opportunity for Obama to show that he cared. (Shades of George H. W. Bush, stumping in recession-plagued New Hampshire early in the election of 1992, reading off an index card: "Message: I Care." Look where that got him, and his party.)
It's easy to see how relations between Obama and the elected Democrats are going to be further strained in 2010. He's playing a long game, taking measured steps that presumably will help spark a job-creating economic recovery within the next few years - coinciding, of course, with his own re-election race in 2012 (the Reagan model in 1984). But Democratic lawmakers are forced to play a short game; all House members are up for renewal next year. As many as three dozen Democrats will be playing defense in competitive House districts. On the Senate side, five or six Democratic incumbents will be seeking new terms in competitive states. For these politicians, talking about a long-term recovery won't cut it. Unless they can point to real job growth in 2010, some of them may well be toast.
The warning bells were sounded earlier this week, by Democracy Corps, a survey firm helmed by Democratic pollster Stan Greenberg and message maven James Carville. When the likes of Greenberg and Carville are saying that things are bad for Democrats, surely it must be true: "The slow recovery and continued job losses, combined with Wall Street bailouts, big bonuses, government takeovers deficits and possible gridlock are an ugly brew...This pessimism is driving an anti-incumbent mood that is keeping ratings for everyone in Washington down, but is having a (disproportionate) impact on Democrats as the party in power."
Greenberg, who polls regularly, found that the Democrats' favorability rating has dropped by 17 percentage points since June - to the point where a thin plurality of the voters now believe (for the first time in a Greenberg poll since 2002) that the Republicans would do a better job on the economy. The fine print suggests that the GOP has gained that edge mostly by default, but no matter. Even if that verdict turns out to be ephemeral, it's still a serious slap at the majority party and a key reading of the current mood.
For elected Democrats, it potentially gets worse. Sixty-two percent of the voters say they would be less inclined to support their incumbent Democratic congressman if the jobless rate next autumn is still north of 10 percent with no foreseeable likelihood of a steady drop. (These voters wouldn't necessarily defect to the Republican challenger; rather, they'd be more likely to simply stay home. Typically, in midterm elections, the party that generates less enthusiasm is the party that loses.)
It's increasingly clear that the Democratic base and the Democratic president are not necessarily on the same page. Whereas Obama apparently has little interest in pushing for bold job-creation measures, that's precisely what Democratic voters are asking for. According to the latest Greenberg poll, 83 percent favor a jobs-creation plan over a deficit-reduction plan in order to get Americans back to work. Indeed, House Democratic leaders are working on a jobs bill right now (although the proposals therein are far more modest than New Deal-style job creation); they're hoping to debate it publicly later this month, so that voters at least can see that they're trying to do something.
The problem for elected Democrats, however, is that Obama is most preoccupied with health care reform and Afghanistan. If voters perceive that Obama is too focused on the far horizon, and insufficiently focused on pulling people off the unemployment lines, many of these Democratic incumbents could wind up next November as collateral damage.
The great messiah said last February that if we rushed and passed the Porkulus that unemployment would never go above 8%. Was Obama lying or just stupid. or just trying to scare us into passing his communist agenda? CD75
CD75 - Maybe even President Obama did not realize the extent of the damage done by the failed presidency of George W. Bush. George W. Bush's policies ballooned the deficit - FOR WHAT ????? The George Bush bailouts of Wall Street were a natural progression to the GOP world of no regulations. The rats play and WE pay. What BS. FormerGOPer
It's stupid to talk in terms of "job creation". Reforming the health insurance system, investing in infrastructure, helping to keep state and local governments on their feet, and other such measures are all necessary to create the CONDITIONS for job creation. There's little the government can do to create actual jobs. Using the unspent TARP funds for deficit/debt reduction makes sense in terms of improving the economy and loosening up lending. That also helps to create jobs. Politicians of both parties do themselves and the public a disservice when they say that they can "create" jobs or that a program will lead to more jobs and lower unemployment. The stimulus was definitely the right thing to do, but it was oversold as a "jobs program". anonymous- Obama's resources are not limited. It's his liberalism that's limiting job growth. He could cut taxes, and remove costly regulation that strangles small business. That would create plenty of jobs right there. Now we know that's not going to happen because Obama only views the world from the perspective of government, and has little to no faith in the private sector. If you don't believe it consider that less than 10% of the cabinet has private sector experience. That's pretty ridiculous. jmc
While it would be sad for congress to lose their jobs because of unpopular votes they are sent to do the peoples business not pander to stick around there for many terms. I do not believe the GOP is as well situated as many think because they do not offer alternatives they are simply the party of NO. Who needs that ?? FormerGOPer
JMC - With all due respect - it was the relaxation and repeal of regulation which led to the financial system meltdown !!! I remember all too well the outcry about Clinton and the Chinese. Do you think it to be intelligent to borrow for a preemptive war from the Chinese and not pay as you go ??? I thinik it is reckless ! FormerGOPer
The dems need increased tax revenue to grow the govt. and its services, but when they raise taxes (or threaten too) the economy slows and less tax revenue is generated. The answer is not a jobs summitt or using returned TARP funds for a 2nd stimulus/jobs bill or raising taxes on everyone to expand govt. healthcare. The answer is to, here it comes, CUT TAXES and let the private sector start hummimg again. All those businesses out there are keeping their powder dry until they know the ground rules as Tom so nicely stated on the prior blog. What will their healthcare costs be? What will their tax burden be? Etc. My recommendation is to 1) table healthcare, 2) take what's left unspent in the stimulus and suspend the payroll tax for employers and employees for 6 months, 3) and finally stop talking about taxing and spending every social problem we have away, 4) hold govt spending growth to 0% for the next 2 years, 5) table cap and trade. Sounds like a program businesses could get on board with and regular people would immediately feel the results. The problem is the perception and the uncertaintity businesses and people feel, imho. NEPhilly
nigel, here is a link on the navy seal story. It is on Fox and several other web news outlets, but I do not believe it has been in the MSM anywhere. Odd, isn't it? http://www.foxnews.com/story/0,2933,576646,00.html tom - wilmington, de
Economies function strongest with higher tax rates, not only in the U.S., but in the world. The countries with the lowest taxes have less stable economies. The U.S. economy takes a hit every time taxes are cut, because the private sector is not responsible to the citizenry. HandNik
Obama and the Democrats in Congress had the chance to do something about jobs earlier this year. Instead we got the stimulus bill. He was also told yesterday that one of the things holding up business hiring is the aggressive spending agenda he is pursuing right now in Congress. Between cap and trade, new financial regulations, and healthcare, businesses are waiting to the costs. Business likes certainty. For example, Obama said yesterday "If there are things that we're doing here in Washington that are inhibiting you then we want to know about." Well, let's see. I have a small business with a payroll of $800,000. I am single and my modified adjusted gross income is $600,000. Next year, thanks to the healthcare legislation passed in the House, I could have an 8% tax on my payroll if I do not provide healthcare ($64,000). I will have a 5.4% surtax on my modified adjusted gross income ($32,400). I will also have an increase in my income tax liablilty on my taxable income (3% over $171K and 4.6% over $372K, approximately). All told, this is more than a $110,000 increase in my costs for next year. So tell me, why should I be hiring anybody? tom - wilmington, de
jmc: the Glenn Beck 10% cabinet story has been debunked. http://www.politifact.com/truth-o-meter/statements/2009/dec/02/glenn-beck/beck-says-less-10-percent-obama-cabinet-members-ha/ still_independent
What is this today. I thought the Republicans were the party of old white men, a regional party that could never recover national prominence. What happened? tom - wilmington, de
FormerGOPer, what party controlled both houses of Congress that created and approved the bailouts, TARP and everything else that passed since January, 2007? How did Barack Obama, as the junior senator from Illinois, vote on the bailouts and TARP? tom - wilmington, de
tom: i hate it when the MSM has no references to stories: http://www.cnn.com/2009/WORLD/meast/11/25/navy.seals.falluja/index.html ..... http://www.cbsnews.com/stories/2009/11/25/national/main5773164.shtml?tag=contentMain;contentBody still_independent
still, they did not pop up in my google search. My bad. tom - wilmington, de
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