Obama: Too Many Jobs Lost

WASHINGTON (AP) -- With joblessness rising, President Barack Obama said Thursday he was "deeply concerned" about unemployment and conceded that too many families are worried about "whether they will be next" to suffer economically.

In a White House interview with The Associated Press, Obama said that since he took office, "we have successfully stabilized the financial markets," and "started to see some stabilization on housing."

"But what we are still seeing is too many jobs lost," said Obama, commenting after new government figures showed the unemployment rate had risen to 9.5 percent last month.

On an important international subject, Obama is scheduled to travel to Russia next week, and he said the agenda includes talks on a new treaty to curtail long-range nuclear missiles. Asked why he intends to meet with Prime Minister Vladimir Putin, the former president, Obama said he "still has a lot of sway." Putin now is nominally the second-in-command in the Kremlin.

Obama also is to meet with the Russian president, Dmitry Medvedev.

It is important that both Medvedev and Putin hear the same message from the U.S., said Obama, who added that he believes Putin "has one foot in the old ways of doing business and one foot in the new."

Obama praised Russia for its cooperation in attempting to persuade North Korea and Iran to abandon their nuclear development programs. The United Nations recently approved "the most robust sanction regime that we've ever seen with respect to North Korea," he said.

Asked if he was resigned to Iran's possession of nuclear weapons, he said, "I'm not reconciled with that, and I don't think the international community is reconciled with that."

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Obama spoke sympathetically of white firefighters in New Haven, Conn., who won a Supreme Court case this week after claiming they had been unfairly denied promotions because of their race. But he added, "Keep in mind the Supreme Court didn't close the door to affirmative action" to help minorities.

At the same time, he conceded the justices were "moving the ball" on the issue with a 5-4 ruling in the case.

Obama, a former teacher of constitutional law, said, "I've always believed that affirmative action was less of an issue or should be less of an issue than it has been made out to be in news reports. It hasn't been as potent a force for racial progress as advocates will claim and it hasn't been as bad on white students seeking admissions or seeking a job as its critics say."

Asked about his plans for detainees currently held at the prison at Guantanamo Bay, Cuba, the president said the idea of indefinite detention being part of his legacy as president "gives me huge pause."

But he also said there are some detainees who don't fall neatly into existing categories for criminal prosecution in the United States or under international law. He said dealing with them is going to be one of the biggest challenges of his administration. He said he's not comfortable with mandating indefinite detentions on his own through executive orders, but he didn't explicitly rule that out.

And his view of Michael Jackson, whose death has dominated news coverage for nearly a week: The president said Jackson was "one of our greatest entertainers" and "I still have all his stuff on my iPod." But he said Jackson's life had been tragic and in many ways sad.

On light subjects:

-- The president spoke enthusiastically of the White House pastry chef. "Whatever kind of pie you want, he will make it," Obama said, adding ruefully that that was a problem for him and wife Michelle in regard to their weight.

-- Asked whether he was a bigger fan of Kobe Bryant or Michael Jordan, one the reigning MVP of the National Basketball Association and the other a retired superstar, the basketball-playing president said without hesitation: "Michael. I haven't seen anybody match up with Jordan yet."

Comments

[Roxanna]

I have to say ... I think this a political game by Obama... Why should he be surprised at that job losses..???
Economist told him that his stimulus package would not be enough...

Where are the jobs started from the stimulus? Where is the money? How many homeowners have been helped from foreclosure? How many states are being helped with their budget deficits? Where are the start ups...Certainly not with main stream America... They are all off with the welfare of The Bankers along with Corporate America running Congress.

Are we Surprised?

[Strega]

Zzzzzzzzzzz

[masher]

I agree, its just a game. He is trying to say the right things without actually doing the things he could to reduce unemployment.

Right now, the federal government manipulates the labor market to drive down wages through various policies. But notice that Obama won't even talk about these programs. He doesn't want to have to really change anything. He could easily put an end to all visa programs and he would enforce the borders. Those are national security issues and trade issues which he has considerable power over. But he won't.

But he will try to talk us down. Just calm us down while employment gets worse and hope the bubble he is creating will inflate the economy artificially. Its just a bubble he is delaying for.

[chargerman]

Not at all. We should not be surprised with these Socialists trying to take over the country. They are getting what they voted for. No one will have a job, but we will be able to breathe better due to some clean air act.

[Ceciboom]

OH MY GOD! WE'LL BE ABLE TO BREATHER BETTER?! HOW HORRIBLE!!

[republicrat1]

Economist told him that his stimulus package would not be enough...
really?
only 20% of the ideological 800 billions bill has been actually spent and you want more?? what do you think cap and tax will add to this?

[pragmaticdallasite]

Yes, really. The stimulus bill was too small. We need one twice the size with direct Main st. spending coupled with health care reform, a bold energy independence policy, and the renegotiation of international trade agreements.

[Bub]

Spot on Roxanna.

As a Krugman-ite I have only one thing to say to Obamanites: "Told Ya!"

Since 1973 the median wage has remained flat. By now it's below where it was in 1968. That's at least 35 years of flat wages. In that time the GNP has gone up 150% in real terms.

That means all the increased in rents from the growth in GNP has gone to the top 1% - the supply-side investing rich.

Working people got nothing!

Repeat - in 35 years and 150% growth in GNP all the gains went to the very rich, working people got nothing.

That's trillions and trillions of dollars, year-in and year-out flowing to the uber-rich at the expense of the median worker.

The result is a collapse of demand.

During the Bush years alone, some 14 trillion dollars were shifted to the uber-rich at the expense of the median worker (median wage dropped 5%, top .01% went up 500%).

The economy won't recover until demand recovers. That means increased purchasing power for workers - that means increases in wages and that means enhanced bargaining power for workers.

Given those huge numbers, that meant that any stimulous less than $1 trillion just wasn't serious.

[pragmaticdallasite]

fanned

[PaiaGirl]

You are so right!

[Strega]

Man the rite tr00l crapp is still knee deep in here!

[kitkatborn]

Honey chile, they can't help themselves. We have to help them.

[Austrian School]

We are in this mess because we don't teach economics in high school. College is too late because not everyone goes to college, but they can still vote. And they are easily misled. The Wealth of Nations should be required reading in high school.

The Market will always correct itself over the long-term. In the short-term it can be manipulated (thru bubbles, etc.), but over the long-term it always balances out.

All you can do is save for a rainy day, because rainy days come. The government cannot do anything to help you.

All they do is screw things up worse.

[klondiker]

Sure, it'll balance out over the long-term, but not before unemployment hits 30% and the recession grinds out over 10 years. The whole point of a stimulus is pain-relief - it is not to solve the crisis, but to alleviate the symptoms. People, by and large, expect that from their government. And, when done correctly (i.e. when it is the right size and spent on truly stimulative projects) it does work.

[Austrian School]

I understand what the point is. the problem is it doesn't work.

It's like being a drug addict. Instead of letting you body 'come down', addicts simply snort another line to get back to that high. And they keep doing it over and over until they kill themselves or go to rehab.

We need rehab for spending beyond our means.

[pragmaticdallasite]

Exactly

[kitkatborn]

I need a really big glass of wine. Is it 5 o'clock yet, somewhere.

[Ceciboom]

The government was elected BY the people. If all they do is "screw things up worse", that's a reflection on the people, not some abstract bogeyman entity that you call "the government".

[chargerman]

You are 100% correct. We are getting what we elected.

[ssgman]

The Austrian Economic model is a steaming pile of discredited non-sense.

[pragmaticdallasite]

I disagree, it has some sound theories. Unfortunately it is impractical to implement in 2009 in the U.S.

[RegLib]

Ah, the "government is the problem" religion.

This is as anti-American as you can get. No country can function without a government. The United States is founded on the ideal that the people are the government. Republicans have spent decades obstructing good governance, and when in power they have worked hard to remove the funding, expertise, and legal leverage for government agencies to do their jobs -- then they point to the ineffectiveness of those same agencies.

Kennedy's "Ask not..." speech is anathema to Republicans, whose only goal is unrestrained profits.

[Patel10314]

Obama's solution to the problem is to throw more money at the Baknstas and allow more jobs to be shipped overseas while not restricting the number of people entering the country. Think about it we now need 150,000 new jobs every month to be created just to keep up with the populaiton.

Eventually this depression will make the 1930's look like a cakewalk.

[ldsb]

For the umteenth million time-TARP was passed during the Bush Admin.-TARP was the bail out of the banks. Obama pased a stimulus plan to send money to the states for public works projects. Really, know what you are talking about before you make such an uninformed comment>

[prettyinpink]

And GM? Chrysler? Health Care? Cap and Trade?

All are programs proposed and passed by the current admin.

Spending money like we have it-we do not.

If you want a bigger government Obama, Pelosi, and Reid are perfect.

If you want lasting employment and jobs. Companies that create, innovate, and hire-you must look to the private sector.

http://finance.yahoo.com/expert/article/economist/172169

[masher]

What has Obama done about supply in the labor markets? Nothing. Obama is still allowing the *import* of labor into the US using federal regulations!

So our own federal government is working agaisnt us. Its the same "race to the bottom" of the Bush years. Obama just talks better. But the policy is essentially the same.

If you disagree then explain why Obama isn't even talking about federal regulations that hurt US wages.

[RegLib]

Bush? Bush who? Never heard of him.

Republican History is that we went right from the Clinton administration to the Obama administration.

[Strega]

who are the Baknstas?

[masher]

Exactly ! Obama's policy is remarkably similar to Bush and Reagan's.

[beardance42]

Standard Republican response to everything: the best thing for our economy is to make the banks, oil companies, credit card companies, HMO's and billionaire tax cheats richer. Holy smokes - how much deader do you guys want to make the middle class?

Bush's tax cuts plunged us into the very debt the Republicans are trying to pin on Obama, displaying their own bankruptcy of credibility. The economy produced jobs because of lax credit, an illusionary housing bubble and lower energy prices. As soon as those artificial intoxicants were removed - crash.

The middle class has been losing ground - in earnings and wealth - for years now, while the wealthy has gotten wealthier. The gap between the richest 2% and everyone else is now the widest since the 20's, as is the aggregation of wealth at the top of the scale. You can only hammer the US middle class so long before we can't support our economy and the economies of the nations who produce the goods we buy.

Bush's Paris Hilton tax cuts were just a giveaway to the rich, that Bush's loyal followers are now whining about having to pay for. Going back to that illusion is like turning the vampire bats loose in the blood bank.

[kitkatborn]

Fanned & faved. Really good post. should be easy enough for even a tr0ll to understand.

[Strega]

i dunno, they're pretty st00pid

[DonTrolleone]

excellent post

[pragmaticdallasite]

You get it

[Austrian School]

Wrong. Bush's tax cuts actually increased Government Revenue.

Besides, the rich pay for the majority of taxes anyway. Now maybe if poor people actually paid some taxes, they would vote differently? Handouts aren't the same when it's your money being handed out.

[prettyinpink]

The problem with Socialism is that you eventually run out of other peoples money-Margret Thatcher.

[Subterfuge]

Tired false argument. Seriously. Very tired.

Earning $18,000 and having it reduced to $12,000 after taxes is not a handout. Try to live on that amount of money per year. That's right, you don't have to.

[markytex]

i want instant change and hope at the snap of my finger or the wiggle of someone's nose. i have no patience. i want it now!

remember folks. unemployment was over 10% two and a half years into reagan's presidency.

also, it amazes me some of the people complaining are fully-employed. so stop shouting in the wind, be grateful and help others who need it.

[kitkatborn]

Thank G)d. Someone with some sense. It's amazing how many people act like 2 year olds when it comes to wanting it yesterday.

[ATSJer]

They aren't really acting like two year olds, they are acting like partisan hacks who wanted the unemployment rate to rise just so they could say "I told you so", they have only one interest...themselves and the GOP way which led to this whole disaster.

[prettyinpink]

OOOH I love this-lets compare Regan's response to a downturn to Obama's.

Regan-decreased regulations broadly. Obama increased broadly.

Regan cut taxes on individulas-Obama increased.

Regan decreased the size of governemnt-Obama dramatically increased the size of government.

Regan took on the special interests-fired the union traffic controlers when they tried to shake down the rest of the country. Obama-well lets just say he helped the unions shake down the rest of the country-so far.

Do you see any pattern here?

We are moving in the oppisite direction of bringing this country back to prosperity.

Even Bill Clinton promised to cut the government payroll by 500,000 jobs.

[Strega]

good post

[dnegri]

The problem is that many people weren't even around during Reagan, or too young to realize the scams. Then (speaking to our trolls here) they got brain-washed by the "Myth of St. Reagan" that Conservatives started concocting during the latter years of his second term. It's all spelled out and documented in the book "Tear Down This Myth" by Will Bunch.

[PiscesPrincess]

excellent. and btw, the stimulus package is just now being sent out and allocated to various shovel ready projects.
otherwise, its the additional dough we all have in our paychecks that has helped a litte. and as far as I am concerned, it was not necessary. the taxes we pay are so low already . why should the government give us this money back now .. the infrastructure of our country is in such disrepair from neglect. I'de rather they spend that money on repair and replacement of bridges, roads electric grid etc etc.

[Pippen]

This economy is heading for a Major Depression. That reality has been approaching for years. If Obama and team (who I supported) don't turn this ship around fast the ship will get stuck in the sand bar and wont move for decades. Not good for national security right now.

Thank "GW" !! The mega money corporations are bathing in money and profits and we're all a bunch of slaves. Gotta love greed and corruption.

[dnegri]

The problem iss that Economic Ship Of State is more akin a huge liner and not a speed-boat. You don't "turn it around fast", no matter what you do. You just send the right commands and wait for it start turning....that's what we've got to hope is happening (but there's also things that a President can not control...).

[zitlight73]

I think you may be right. In the past we always had an industrial base from which to generate jobs, that base for the most part has been off-shored. Plus our money was always good, even during the first Great Depression a dollar was worth a dollar if you had one. Every week the dollar buys less and less and is only back by the good faith of the Federal Reserve Board a private corporation that is not long on good faith. The banksters who have money are buying this country up at ten cents on the nearly worthless dollar.

[mujo]

How about creating funds to go towards small business so they can keep their employees working instead of funneling billions to the banks!

I work for a small software company, we have a great product but we're lacking fund to finish developing it and the company cant pay its employees.

His approach to solving the problems is all talk.

[PeteSLA]

To be fair, his approach to everything is all talk.

[dispassionateobserver01]

"How about creating funds to go towards small business so they can keep their employees working instead of funneling billions to the banks!"

And how often would you keep doing that? You're basically saying that the Government should become the Small-Business Banker. If the Government doesn't save the banks, then the root of the problem is not going to be solved.

[PiscesPrincess]

thank you. this was exactly what I would have said. the schools do not teach logic ...
I had a course in logic in high school. along with typing and drivers ed it was the best course I ever took. People need to learn to think.

[dnegri]

Are you talking about "lines of credit' or direct cash payments? The former is being put in place and if your company can't find a credit line then perhaps you're not doing what you need to do. If you want direct cash payments from the government, well that's not going to happen or than through programs funded perhaps by the stimulus.

[ScreenName05]

We are in a cycle that is going to take 10 to 20 years to recover from. This cycle is the result of 40 years of deregulation, actively selling out the manufacturing base of the country, disassembling wage stability provided by the unions, tax cuts combined with spending increases (ala Ronald Regan who sold the country the bill of goods that they could have everything for nothing), useless wars, bad management (we should have had health care reform 40 years ago when Richard Nixon first proposed it, GM shareholders should have thrown out the management 20 years ago when it became apparent GM was not keeping up with Toyota and Honda), and a consumer convinced they could spend everything they made and borrowed without any consequences. Two SUVs in every garage and a filet mignon in every grill.

We need to learn the lessons our grandparents learned in the 1930s. Save, wear it out, fix it and use it again. Start a busines, get a good job, work like crazy. Save.

This lesson is going to take a long time to learn.

[J-Rome]

You've been fanned.

[PiscesPrincess]

excellent ! thank you. You sound like you've been around awhile. so have I.

[iowabest]

Continued job loss is worrisome but as down as this economy is it wasn't going to turn around on a dime. In reality it wouldn't make a different if it was Republican or Democrat in power this ecomomy was going to take time to come back.

[Austrian School]

But what about all the money we're spending that we don't have?

How are we going to pay off the debt that Obama is compounding for us?

What happens when we can't afford to pay even the interest on that debt?

[dispassionateobserver01]

What Obama has spent is going to add at the most another 20-25 % to the national debt, even if you count the TARP bailout as Obama's doing even though it was clearly Hank Paulson and Bush's decision.

[dispassionateobserver01]

And what youre getting for the money Obama is spending are real things - Real schools, real road repairs, read healthcare IT, real Tax rebates to middle-class people - real healthcare reform.

[PiscesPrincess]

apples and oranges. look it up. governments are not the same type of borrower as ordinary citizens.

[Joel Redman]

So we should have done nothing? It's called an investment. Every business person knows that in order to make money you must spend money. Shutting down the coffers was never an option, and our infrastructure was crumbling to begin with. Due in large part to the Bush tax cuts, which instead of making rich people richer, should have been used to pay off our debt and shore up our finances for just this situation.

[CarolinaDem]

Somewhat unfortunately, this profoundly good President can't bring himself to play hardball in public. He got the best deal he could get from the Republicans on the stimulus; he hoped it would do enough good to look like it was working on the recession. It wasn't enough. Whose fault is that?

[zipowitz]

You crack me up, they jammed through a non negotiated Stimulus Pkg that you somehow blame on the Republicans! It was a dog and pony show for the Dems and their benefactors.

[CarolinaDem]

You use the term 'non negotiated' to indicate that the Republicans were the reason it got through without more tax cuts. I'll grant you the 'dog and pony show' contents--they threw what was on the shelf out into the street as fast as they could. The reason there wasn't more developed, as Krugman demanded? Votes in the Senate.

[J-Rome]

Jammed through! Where do you get your information? Further, do you have the capacity to discern fact from lies?

http://archives.chicagotribune.com/2009/feb/07/news/chi-090207-stimulus-obama-republicans

http://www.npr.org/templates/story/story.php?storyId=99927275

[PiscesPrincess]

Lots of really good back and forth comments here. thanks, Folks. and enjoy your holiday weekend if you have money for dogs on the grill. or even if not. just be happy you live here and not in Iran or N Korea.

[dnegri]

This is a major morass. Certainly as complex and complicated as what FDR faced, certainly more than what Reagan faced in 1980.

This is not only the "house of cards" crumbling (after all, by 2006 half of all GDP growth from 2002 on was attributed to the "housing market" ), but it is the conflation of all elements relative to the slow but steady transformation from the industrial-based economy to......well, that's the problem. This is the major jobs problem. So many of the jobs lost in the past 2 years have come from economic sectors that won't recover or even exist in the dimension they did before.

And the repercussions are wide-spread. Increased social costs from unemployment, including medical, decline in the tax base/revenues at all levels.....And decreased spending compared to pre-2008 when many people spent equity obtained from home refinancing as well as a national "panic" about not spending their way into debt. Yet all capitalistic based markets require personal debt....

So, we're in for something of a long hard ride. There will be a bottoming out, but the climb back up will be steep and long. And that's not even factoring in the uncertainties of the global market....

[CarolinaDem]

This is great stuff. Obama's hopes for the manufacturing transition are all plotted out, necessarily, on a longterm curve. Taking a rap for 'failing' in one financial quarter will weaken the president and misconstrue the problem. THANKS!

[montecarlo408]

Carolina? That explains it. Moving along...

[PiscesPrincess]

I agree with both of you. This Will take a long time. and carping from the right won't help it one iota. sad but true. in the meantime, let's all take a deep breath and start looking for ways ... creative ways to find work. This is what the author and socialogist, Alvin Toffler called the Third Wave. Good book. I read it in the mid 70's all coming true Hopefully he was wrong about some of it.

[Austrian School]

'Obama said that since he took office, "we have successfully stabilized the financial markets," and "started to see some stabilization on housing."'

Hahahahaha! Housing is stabilizing? Just wait until the next wave of foreclosures hit....the Alt-A loans are due to start resetting soon. Those are in the higher priced markets...we're about halfway through the housing 'stabilization'.

Obama needs to pay attention to markets himself. Not just listen to his advisors. If you're paying attention, it's not that hard to see what's gonna happen.

[bosha]

The Republicans did the same thing to FDR and FDR was a two term President. It's the Republicans that are trying to sabotage Obama's agenda and rewrite history. Why isn't the "private sector" creating jobs?

[Buffington]

Actually, FDR was a four-term President. Died during his fourth.

[bradyd]

Come on now, you know he won't answer that question....

[Austrian School]

Why isn't the private sector creating jobs? Because we're in a recession dude! Everyone is holding onto their money! this is the rainy day they warn you about.

Same reason the banks aren't lending.

[dnegri]

Perhaps he believed what his precesser was saying? Such as on Jan. 16, 2009:

WASHINGTON — President George W. Bush said Friday that while the current economic crisis has sent shock waves around the world, he believes steps taken by his administration have "laid the groundwork for a return to economic growth and job creation" early in the administration of President-elect Barack Obama.

"The American economy has consistently proven its strength and resilience" Bush wrote in his final economic report to the nation.

He said this resilience has continued despite multiple blows to the economy.

Bush's statement came at the beginning of the annual report of the White House Council of Economic Advisers.

Those advisers predicted "a strong economic recovery early in the term of the next administration."

[Austrian School]

Sorry. The 6-year old response of "He did it too!" doesn't work for me.

Bush was wrong too. Anyone who thinks the president can turn the economy around or hold off a recession is high off their a$$.

But Bush is out of office. And Obama shoved a Trillion Dollar Stimulus down our throats claiming he would fix everything.

So we've spent all kinds of money that we don't know how to pay back, and got nothing for it.

Thanks Barack.

[Brianfox]

ahem!!!

I believe the comment was "started to see some stabilization on housing" - emphasis on "started", but yeah I agree, he needs to have daily briefing on what is truly going on w/ the housing industry -

[PiscesPrincess]

and you take joy in his discomfort. what's the matter with you. just stop this. all of you complainers.
try to be part of the solution.

[DrHuffington]

LOWER TAXES
Bill Clinton did it and George Bush did it and it WORKS
Check the Unemployment figures for 1995 when Bill did it, and 2003 when Bush did it.
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet
I don’t care if your left or right on the political spectrum, if you want a job, call your rep and tell them to STOP SPENDING and LOWER TAXES.

[pragmaticdallasite]

Nope, sorry those are simplistic conclusions.

http://www.cbpp.org/cms/?fa=view&id=692

[J-Rome]

Thanks for the link, pragmaticdallasite!

[Shashi0224]

Obama cut taxes on 95% of Americans. What are you ranting about?
Under bush, wages went down and cost of living, ie healthcare, fuel, groceries, etc went up....in effect lowering the standard of living for most of us. Stop with your ridiculous, factless spewing.

[DelawareVol]

Yeah, 13 bucks a week---big deal... When cap and trade is implemented, Bush's Tax Cuts are repealed and Socialized Healthcare take over---everyone's tax burden will increase exponentially regardless of your income level.... Barry Obama=Economic Disaster

[GetRidOfWires]

That experiment's been done. Its resultant failure is why we are in this mess.

[DailyElitist]

That's what we've been doing for 30 years, and it's been a total disaster. Yet, your prescription remains: "more poison, stat!"

Your policy suggestions are the very definition of insanity.

[jboswel2]

Spending has not been low for the past 30 years.

[Raccoon1]

Why are we where we are today? Reagan cut taxes on the wealthy. Bush cut taxes on the wealthy. If tax cuts worked so well, where are the jobs? We should all be rolling in money. The jobs and their wealth-creating powers have all gone overseas. We _could_ have a recovery, if there were jobs to go back to, but the Republicans allowed them to all go overseas - funded by TAX BREAKS for the companies that went.

[charitabledonation]

Housing is no where near even a smidge close to being "stable". Wow...the koolaid must be the purple stuff this week....

[PiscesPrincess]

depends on how you look at the stats. You Could say we are at the START of stabilization simply because the foreclosure caused drop in value of property has tapered off just a bit.
when a man is drowning he will grab for anything.
and no> we are not nearly over all the hurdles . there are many more to come. sigh.. and its not Obama's fault either.