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Joe Peyronnin

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Obama's Jobs Pivot

Posted: 08/02/11 07:14 PM ET

Senate Republican Leader Mitch McConnell of Kentucky has said that making President Barack Obama a one-term president is his top priority. Now that the president has signed the debt-ceiling bill that was shaped in part by Senator McConnell it appears that the senator has outmaneuvered the president and left him badly damaged.

Few members of Congress are happy with the final measure. Moreover, there were no winners following weeks of acrimonious and frustrating debate. According to polls the president's job approval has taken a beating. But Republicans have taken a bigger hit. Meanwhile, the global perception of America has been further diminished.

President Obama found himself in a difficult position following the 2010 midterm election. Republicans won a majority in the House of Representatives. They also gained enough seats in the Senate to head off a cloture vote that would end a GOP filibuster. Even more problematic for the president was the election of the fiscally conservative Tea Party faction of the Republican Party, whose sole focus is to "get government spending under control."

The president decided late last year to continue the Bush tax cuts for the wealthiest Americans in exchange for extension of much needed unemployment benefits. He also decided not to take on the debt ceiling at that time because of Republican resistance, even though Democrats still controlled Congress. That decision ended up giving Republicans enormous leverage and they would come to use it to their advantage.

Earlier this year President Obama said he wanted a clean debt-ceiling bill but the Republicans instead demanded linking budget cuts to its passage. The president then took the position that budget reform would have to be balanced between spending cuts and a smaller amount of increased revenues from the richest Americans and businesses by closing tax loopholes. He even said he would consider finding future savings in cherished social programs, a decision which drew ire from progressive Democrats.

As the August 2 deadline neared the partisan rhetoric heated up. Many experts predicted that failure to pass a debt-ceiling bill would have disastrous consequences on the U.S. and global economies. And while Americans would blame everyone in Washington for the fallout, most of the blame would be directed at President Obama. For the good of the country and his political standing the president had to have a deal. In the end he had to forego his revenue demands and accept a "cuts only" budget bill.

The good news for the president is that he got the debt ceiling extended until 2013 and he avoided cuts in entitlement programs. However, the budget bill calls for $1 trillion in cuts over 10 years, and another $1.7 trillion more to be identified by a special committee of Congress, equally staffed by Democrats and Republicans, later this year. And Senator McConnell has said none of his appointees will vote to raise taxes. If the committee fails to come to an acceptable proposal automatic cuts in domestic and defense programs are triggered. Of course they won't come to an agreement!

With the U.S. economy struggling and unemployment stuck at an unacceptable level, Republicans shifted the debate to government spending. They blamed President Obama for increasing the national debt by 47% since he has been in office. They do not mention that the nation's debt increased by 200% during President Ronald Reagan's two terms, and more than 100% in President George W. Bush's term. And much of today's deficit is due to President Bush; two wars, an unfunded prescription drug bill and his tax cuts.

Republicans fiercely protect the Bush tax cuts and fight to radically cut the size of government and eliminate many corporate regulations. This is their jobs plan, even though the Bush tax cuts have not added jobs. And GOP leaders have effectively used every bit of their leverage to get their way.

Speaking at the White House following the Senate vote, President Obama pivoted from debt to jobs saying he would take steps to get the U.S. economy back on track. He then called on Congress to extend middle class tax cuts and unemployment benefits, to pass pending trade deals and he again called for rebuilding the nation's crumbling infrastructure. "There is no reason for Congress not to send me these bills right a way," the president said. But by putting the onus to act on Congress the president may again be playing into Senator McConnell's hands.

Mr. President, why would you think that Republicans, who control the House and can prevent cloture in the Senate, will ever do anything that may help get you re-elected? Job number one for you is job creation -- please take the lead.


 

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Senate Republican Leader Mitch McConnell of Kentucky has said that making President Barack Obama a one-term president is his top priority. Now that the president has signed the debt-ceiling bill that...
Senate Republican Leader Mitch McConnell of Kentucky has said that making President Barack Obama a one-term president is his top priority. Now that the president has signed the debt-ceiling bill that...
 
 
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02:54 AM on 08/23/2011
I am so sick and tired of this country pretending all is normal while a revolutionary army of militant super-rich people calling themselves conservative Republicans are trying to create a revolution that will destroy America as we know it.

This is not normal, and I see it as a replay of the civil war, the greediest, richest most exploitative people in our country can never get enough money or power, and they can never seem to do enough to roll American history back to the last century and even beyond.

Our media which is where most of get our ideas about what is going on refuses to make the clear statements on, for instance, social security, nor talk about how every measure we have invoked to try to stop or fix the recession has made it worse and shrunk the economy and the tax base. This is too disgusting for words.
06:02 PM on 08/07/2011
Vote: Who is to Blame for the US's Credit Being Downgraded?

http://www.punditpress.com/2011/08/vote-who-is-to-blame-for-uss-credit.html
04:27 PM on 08/04/2011
When the 2012 election comes down to the final days, the Obama election committee will hammer the Republicans over (1) their refusal to allow an increase in taxes on those making over a quarter million dollars, and (2) cuts to Medicare and Social Security. The Republicans need to be prepared with solid answers for their actions. It's going to be a bare knuckle fight and ambiguous answers won't cut it.
09:20 PM on 08/03/2011
Obama looking for job "creation", McConnell looking for Obama's job "cremation".
CognitoErgoSum
CogitoErgoSum was taken when I signed up.
02:03 PM on 08/03/2011
>>"President Obama found himself in a difficult position following the 2010 midterm election. Republicans won a majority in the House of Representatives. They also gained enough seats in the Senate to head off a cloture vote that would end a GOP filibuster. Even more problematic for the president was the election of the fiscally conservative Tea Party faction of the Republican Party, whose sole focus is to "get government spending under control." '
---------------------------------------------------------------------------------

It was the voters who put Obama in this position by electing the Congress they did. I guess Mr. Peyronnin is expecting Obama to "take the lead" against a Congress We the People also elected. In a situation like that, you can only see win-win from 20/20 hindsight.

I voted for Obama and will vote for him again. Am I disappointed in him? No. After twenty years of an oath to support and defend the Constitution, I've read enough of it to know he did the best he could with the Congress the voters gave him.

I AM disappointed in
-those who sat out on elections day,
-those who voted against their interests because they didn't inform themselves
-those who thought they were "sending a messge" will all the narcissism of thinking that elected officials and candidates could discern interntions from the minimal level of civic engagement that comes from casting a ballot.

Next time, if you want to "send a message," send a message. Elected officials have email web forms for that purpose.
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cassie reinara
01:52 PM on 08/03/2011
Sorry. I hate to say it, but all the pleas from supporters and former supporters seems to be falling on deaf ears. If the White House were listening this deal would not been made the way it was made. It was so one-sided, it's not even funny. I gave up on him finding his mojo after this utter disaster of a deal. He and his party have found every way possible to make a possible winning hand a losing one! It's utterly quite disappointing and disheartening!
jhNY
Mercy.
12:28 PM on 08/03/2011
The shift of the national conversation from jobs to the deficit was not caused just by Republicans. Democrats had a hand in it too, as did our chattering class. All over the word, the financial overclass has prompted this shift, owning as they do the politics and politicians and the mainstream media of most developed nations. They are coming for state assets.
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Lukester
11:55 AM on 08/03/2011
Obama has been outmaneuvered at every turn. It is scary that he is president.
CognitoErgoSum
CogitoErgoSum was taken when I signed up.
02:06 PM on 08/03/2011
What's scary that the GOP has worked to outmaneuver someone We the People elected to lead us. It's their disrespect for him and the American people that's scary. The GOP took us and the world economy hostage and dangled us over a balcony and people have the nerve to be upset at the guy who paid the ransom.
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penndl
I am imigination...
08:00 PM on 08/04/2011
They refused to defend themselves against the GOP. You may have noticed this lack of effective response to the republicans by the democrats has been going on for more than a few decades. He won't be respected as long as he keeps bending over. He didn't have to pay a ransom. He surrendered to a threat which he had options to prevent. That to me is unfortunate and scary. I see no gain for him but a great loss for the 95.5%.
02:55 AM on 08/23/2011
Both are scary ... there is no longer a government by, or and for the people ... that means we need revolution ... if we have the guts.
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scottishboy
Born in the USA!
11:40 AM on 08/03/2011
Job pivot? Oh, you mean "invest" in the future, is that right? No, that's wrong, lets spend, spend and spend some more so we can become more like Europe, kind of like Greece?
CognitoErgoSum
CogitoErgoSum was taken when I signed up.
02:08 PM on 08/03/2011
It worked for FDR. If you say that it wasn't the New Deal, but WW2 with its increased demand for workers and materials that got us out of the Great Depression, let me remind you that wars are ALSO federal spending.
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scottishboy
Born in the USA!
07:13 PM on 08/03/2011
It did not work for us or FDR. BTW, that's my socialists brothers argument, how dumb.

Here's a little information for you with regard FDR and the First Great Depression:

By 1940, eight years after the New Deal was launched the U.S. unemployment rate was still hovering around 15-percent. Wow, that is some success story! To put that into perspective, it would be like the United States having a 15-percent unemployment rate in 2016 and everyone celebrating the success of Obamanomics.

Even Henry Morgenthau Jr., FDR’s own treasury secretary 1934 - 1945, acknowledged that the blizzard of government spending didn’t create new American jobs. Testifying in front of the House Ways and Means Committee in 1939, said, “We have tried spending money. We are spending more money than we have ever spent before and it does not work. And I have just one interest, and now if I’m wrong . . . someone else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises . . . I say after eight years of this administration, we have just as much unemployment as when we stated . . . and an enormous debt too boot”.
BigDaddyWow
This member is licensed to spank
02:36 PM on 08/04/2011
FDR's policies took a 2 year depression and stretched it out for 10 years. However, he did not have the benefit of hindsight that we have today with the exception of the depression of 1920 - which ended in 9 months because Coolidge simply got out of the way. The private sector is the only answer and it doesn't appear to be on the table.
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wayne the pain
11:00 AM on 08/03/2011
The president has been made to look like a rank amateur by Boehner and McConnell. Obama has blundered and mishandled every opportunity he had to win or at least to break even. To say he was inept is an understatement! After voting for him I was angry and disappointed in his job performance and now I am sad an embarrassed for him. This poor man is so unqualified and so unprepared for the presidency that it boggles my mind on how he fooled us. He sounds so great, then NOTHING!! As he always says, God bless America!
CognitoErgoSum
CogitoErgoSum was taken when I signed up.
02:13 PM on 08/03/2011
Too bad he didn't get the constituents he deserved by talking about him like that.

Boehner, McConnell and the rest of the GOP are pure evil and NOT rank amateurs at it. They are very good at what they do, saying so is like saying serial killers are good at what THEY do. That's who Obama has been fighting, mostly alone, having been abandoned by fair-weather supporters like yourself.
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wayne the pain
04:08 PM on 08/03/2011
Did I tell him to stay in two wars and enter a third? Did I tell him to fold on public option health care? Did I tell him to extend tax breaks for billionaires? Did I tell him to sign a weak and compromised Wall St. "reform bill"? Did I tell him to follow advice that has the economy worse than when he took over? I know when to "bail" on someone that lied to me or is so incompetent he should resign! Wake up chump the ship is sinking!
02:57 AM on 08/23/2011
No you did not tell him to do any of that, and neither did I or any other or the majority that got him elected ... so we need to find out who the hell has been telling him what to do, and why he does it without a fight or so much as a whimper.
10:05 AM on 08/03/2011
Holman Jenkins: "But another hard truth is we've wasted a crisis. President Obama, in fact, is a major crisis waster. He does not challenge sacred cows. He doubles down on them and their associated interest groups. He's a defender of government programs simply because they exist and because the easiest support to acquire is the support of those whose federal pork is threatened. Look at last week's FAA shutdown, partly to prevent an infinitesimal $16.6 million in cuts to the Essential Air Service program—a "temporary" program enacted at the time of deregulation in 1978. Look at the measly $2 billion in savings the White House proposed in the original Biden talks, out of a 2012 budget of $3.7 trillion.

Mr. Obama's mindset is to frighten Americans against change rather than lead them confidently to do what must be done."
10:02 AM on 08/03/2011
I don't understand the point of this post. Yes, why doesn't Obama stop his job destroying policies. The Healthcare Bill, EPA, and Dodd Frank are all job killers. The free trade agreements have languished since Bush proposed them. Obama can't spell economics and has no understanding of the private sector.
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Brandon Wolff
12:30 PM on 08/18/2011
You argue from a false premise. How do any of the bills mentioned kill jobs? I hear that (and other equally silly) things said from Righties, but there's no evidence to suggest, much less prove, these claims. Free trade kills jobs like no other. If our labor market has to compete with that of China or Indonesia, we're going to lose every time. And considering the low cost of transportation, it's a no-brainer for manufacturers. Free trade moves towards eliminating tariffs, which are the only protection for middle-class workers in the US production fields. Fact.
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nirek
Proud progressive Vietnam vet. against WAR
09:35 AM on 08/03/2011
Why doesn't the President call the congress back to deal with the air industry? They had to furlough workers , thousands of them and the projects that were employing people are NOT getting done.
This congress is the worst ever and should give up their pay and benefits for NOT doing their jobs!
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Lukester
11:56 AM on 08/03/2011
Because Obama cares only about 1 job - HIS.
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shankapotomus
12:07 PM on 08/03/2011
I don't know they are rated higher than the last congress.
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den1953
The best politicians are for free!
09:32 AM on 08/03/2011
So how will the business owners produce a 5 dollar item sold in America for 40 cents this is what the American companies are up against, cheap labor from overseas and unfair competition from China, the Chinese Government can regulate every thing from wages to housing to health care, American companies are at a huge disadvantage. How do American workers survive on minimum wage we can hear all the rhetoric out of Washington but talk is cheap,Americans need jobs not false promises!
09:26 PM on 08/03/2011
Companies act to protect investors over employees. Short term profit is GOD.
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v650
03:25 PM on 08/07/2011
If a business does not make any profit then they cease being a business. Don't blame a business for fighting for every dollar they can get, you have to fight in this global economy to keep the lights on especially when the government regulates power companies to charge even more for the lights, you can bet the chinese do not have that problem.
08:24 AM on 08/03/2011
"There is no reason for Congress not to send me these bills right a way," the president said. But by putting the onus to act on Congress the president may again be playing into Senator McConnell's hands.

Mr. President, why would you think that Republicans, who control the House and can prevent cloture in the Senate, will ever do anything that may help get you re-elected? Job number one for you is job creation -- please take the lead."

Joe,
Tell us something we don't know. What are your suggestions--concrete actions that the President can take. Can he sign an Execuative Order to put people back to work? Can he vote in the House, or overcome the filibuster?
He can try and un-brainwash the American people about the threat of debt and the deficit--and talk about jobs till the cows come home, but he must do it at a third grade level--few really understand. Still, he doesn't vote in the Congress. So, I ask you again--concrete suggestions?
CognitoErgoSum
CogitoErgoSum was taken when I signed up.
02:16 PM on 08/03/2011
Thank you for seeing the reality of Obama's position. I've been trying to explain this till the cows come home. Why doesn't anyone else read the Constitution?

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