Democrats in a jam as economy slows

[WestVirginiaRebel]

Politico:

President Barack Obama and the Democrats head into the summer campaign season with the economy slowing, unemployment flirting with double-digits — and few options for a quick fix.

Obama’s economic stimulus plan is winding down, right when Democrats need it most. And a big new jobs bill?

Forget it. House Democrats had to battle this week just to pass a bill to prevent teachers from being laid off, over the objections of 15 mostly conservative House Democrats and even Obama, who threatened a veto over how the House planned to pay for it.

The spending was so sensitive that the White House pleaded for the funding privately and through surrogates — and even ultimately in a public letter — but refused to make an official budget request, infuriating some in House leadership.

Speaker Nancy Pelosi even enlisted Mark Zandi — a former economic adviser to Republican John McCain’s presidential campaign — to make the case to her caucus for more spending. Zandi’s warning Tuesday: boost aid to the states or risk a “double-dip” recession — which House Democrats clearly understood could cross-check their chances of retaining the majority in November.

It’s that kind of year: Democrats desperately need to show midterm voters they’re doing something to create jobs. Republicans are ready to pounce, blasting the Democrats as free-spending budget-busters — and polls show voters are listening, nervous about government spending and ballooning deficits after Obama’s barrage of bailouts, stimulus and health care reform.

“The question is, can they create the perception that they have done all these things to create jobs, or that they tried but the dastardly Republicans prevented them from creating jobs?” said Howard Gleckman, a senior researcher on tax and budget policy for the Urban Institute. Both options, he said are likely to have similar political consequences come November.

“The truth of the matter is that the unemployment rate between now and November is pretty much baked in the cake. It’s not going to come down very much.”

It's true: There was near-universal agreement among economists that the June jobs report Friday cast significant doubt on the prospects for a robust recovery anytime soon, a finding encapsulated for most Americans in a single number — the 9.5 percent unemployment rate, even though it was down from 9.7 percent the previous month.

Still, the Obama administration already has launched the message that they hope will take Democrats into November: a “Recovery Summer” spent talking up 3.5 million jobs created or saved by the $787 billion stimulus bill passed by Congress last year.

But the scope of the problem is daunting: on a day when the Labor Department reported the economy created a modest 83,000 private-sector jobs last month, Obama touted new stimulus-funded broadband Internet projects, adding just 5,000 jobs.

Stimulus money will continue to flow out of the federal government into 2011, but experts are warning that the greatest risk is the prospect of state economies tanking and dumping thousands of teachers, policemen, and other state employees on the already-saturated unemployment rolls.

This political problem has spurred a fierce philosophical debate inside the Democratic Party over what’s the best medicine for the economy — bigger spending, or cutting deficits. Liberals are clamoring for more money to save the economy, and centrists are arguing there's no more money to give in the face of trillion-plus dollar deficits.

"Some of our colleagues do have this mindset that the only thing that matters right now is deficits, but some of us would argue that the real anxiety is jobs, so we should be focusing on that,” said Rep. Steve Israel (D-N.Y.), a Pelosi ally and an up-and-coming Democratic election strategist.

He called the centrists’ fears “misplaced trauma.”

Tell that to about a dozen or so members — including Alabama Democrat Bobby Bright, South Dakota’s Stephanie Herseth Sandlin, Ike Skelton of Missouri and Vic Snyder of Arkansas – who tend to vote against all spending increases.

“I just think that there are those who want to make sure that they are very moderate, conservative Democrats,” said Rep. Dutch Ruppersberger, the Maryland Democrat charged by leadership with whipping some of his party’s most conservative members. “They won’t vote for anything but the basics.”
________

"Recovery Summer" continues to fizzle for the Democrats.

[AceRimmer]

This would be high comedy if it weren't for the millions of Americans who are out of a job. The labor department isn't bothering to count the people who've given up looking for work, so the unemployment rate is likely close to double the 9.5% listed.

 

Obambi is Jimmy Carter on steroids.

[pollyannaish]

So people don't do the math on how much that is per job? I mean, 787 billion to create (or save) 3.5 million is NUTS. Especially when most of those are census jobs.

[Chickadee]

This would be high comedy if it weren't for the millions of Americans who are out of a job. The labor department isn't bothering to count the people who've given up looking for work, so the unemployment rate is likely close to double the 9.5% listed.

 

Obambi is Jimmy Carter on steroids.

AceRimmer, this is going to be my top pick for Pookie's Toons this month:

[NCTexan]

Chickadee!

 

That's an all time winner... I love it.

 

It's perfect and even has him with Harvey the Killer Rabbit.

 

Thanks for posting it as I had missed it.