Obama to address new economic ideas next Wednesday
By Alister Bull and Jeff Mason
WASHINGTON |
Sat Sep 4, 2010 1:07pm EDT WASHINGTON
(Reuters) - President Barack Obama said on Friday he would outline new
measures next week to boost the U.S. economy, but analysts were
skeptical he would be able to deliver a big enough package to lift
growth significantly. Obama made his remarks after
August data showed that jobs -- the central issue in November
congressional elections -- were being created too slowly. The
White House is under pressure to show tangible results in lifting
growth and hiring before the November 2 election, when Obama's Democrats
face punishment from voters anxious about near double-digit
unemployment. "I will be addressing a broader package of ideas next week," Obama told reporters in the White House Rose Garden. "We
are confident that we are moving in the right direction. But we want to
keep this recovery moving stronger and accelerate the job growth that
is needed so desperately all across the country." The
White House has ruled out a second stimulus program along the lines of
the $814 billion emergency spending package Obama signed into law in
2009, limiting the scale of any new initiatives and the likely impact on
U.S. growth. Polls show voters are
worried by the record U.S. budget deficit and Obama's economic team
will take care to design measures that do not add significantly to the
funding gap. They will also likely
lean toward measures that ought to be popular with Republican lawmakers,
like tax cuts, in order to win the support Obama's Democrats will need
to get any new law through Congress. With
little time left before the November vote and the risk Democrats could
lose control of Congress, analysts saw little chance Obama could get
backing for major measures. "This
is political positioning going into the elections. It is not the stuff
of economic policy-making," said Douglas Holtz-Eakin, who advised
Republican presidential nominee Senator John McCain during the 2008
campaign. 'TARGETED PROPOSALS' ON WEDNESDAY The
White House said Obama would "discuss some targeted proposals" during a
visit to Cleveland on Wednesday, specifically noting his long-standing
promise to extend tax cuts for American families earning less than
$250,000 a year, and investing in parts of the economy likely to grow
fastest. White House
Communications Director Dan Pfeiffer also spelled out that Obama would
deliver his message in the same city where the top Republican in the
U.S. House of Representatives, John Boehner, urged the president to fire
his economic team. "The President
will lay out the choice between his ideas and the failed policies and
failed philosophy that led us into this mess," Pfeiffer said in a blog
post. Obama aides said the speech in Cleveland would be broad in outlining ideas he believes will help stimulate the economy. On
Monday, the president highlighted a number of possible options
including extending middle-class tax cuts, investing in clean energy,
spending more on infrastructure and delivering more tax cuts to
businesses to encourage hiring. "The
politics make it really difficult to do what should be done, and
therefore trying to draw a balance between getting something and being
politically realistic is problematic," said Chad Stone, chief economist
at the Center on Budget and Policy Priorities in Washington. The
White House declined to give more specifics about the measures under
consideration and a spokeswoman said no final decisions had been made. "We
need to take further steps to create jobs and keep the economy growing,
including extending tax cuts for the middle class and investing in the
areas of our economy where the potential for job growth is greatest,"
Obama said. Obama will travel to Milwaukee on Monday, the Labor Day holiday. He will also hold a White House news conference next Friday. "I'm
going to have a press conference next week where, after you guys are
able to hear where we are at, we'll be able to answer some specific
questions," he said. POSITIVE AUGUST The
August employment report earlier showed a bigger-than- expected rise of
67,000 in private payrolls, while unemployment inched up a tenth of a
percentage point to 9.6 percent. Overall, U.S. nonfarm payrolls fell 54,000 as temporary jobs to conduct the decennial census dropped by 114,000. "Jobs
are being created. They're just not being created as fast as they need
to, given the big hole that we experienced," Obama said. "We're
going to have to continue to work with Republicans and Democrats to
come up with ideas that can further accelerate that job growth. I'm
confident that we can do that." (Additional reporting by Patricia Zengerle and Steve Holland; Editing by Peter Cooney)
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