Editore"s Note
Tilting at Windmills

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August 19, 2010

MAYBE SOMEONE SHOULD DO SOMETHING.... It's Thursday, which means the new weekly numbers are released showing initial claims for unemployment insurance. Economists expected the number to drop last week. They didn't -- the total rose to 500,000, the highest since November. After some more encouraging reports earlier in the summer, new jobless claims have gone up every week for the past month.

To put this in perspective, economists would look for the number to drop 400,000 to signal a healthier job market that can bring the unemployment rate down. Lately, we've been moving in the wrong direction. The Washington Post's Neil Irwin said this morning's report "feels more double dip-ish than tepid growth-ish."

It coincided with news from the Federal Reserve Bank of Philadelphia' that showed "manufacturing in the mid-Atlantic states shrank this month. The index fell to minus 7.7 points in August -- its lowest level since July 2009 -- from last month's 5.1 points."

With that in mind, President Obama spoke briefly this afternoon, talking up a bill to boost small business incentives, and urging Republicans that have refused to let the Senate vote on the legislation to give it consideration when lawmakers return from their recess.

"There will be plenty of time between now and November to play politics," he said. "But the small business owners I met with this week, the ones that I've met with across the country this year, they don't have time for political games. They're not interested in what's best for a political party. They're interested in what's best for the country. When Congress reconvenes, this jobs bill will be the first business out of the gate. And the Senate Republican leadership needs to stop its efforts to block it."

I get the point of remarks like these. This morning's report was an unexpected blow, and for those fearing another economic downturn, it was yet another reason to feel less confident about where we're headed. The president knows, of course, that the Senate can't vote on the small-business bill during a recess, but he made the remarks anyway, as if to say, "Don't worry, we're working on it."

But as much I often appreciate Obama's remarks for their morale-boosting qualities, this wasn't making me feel better. By any reasonable measure, the bill with small-business incentives is a good proposal, which deserves to pass. Republican opposition to it really is ridiculous. But it's not the kind of sweeping measure that's going to turn around a growing jobs crisis. It's an arrow in a quiver -- and a good one -- but we're going to need a lot more.

So, is there any good news? Reader T.K. alerted me to this report in USA Today on many domestic corporations "sharply increasing their capital spending this year," fueling hopes that "business investment could help pick up the slack and eventually spark job growth that lifts the economy from its doldrums."

Here's hoping.

Steve Benen 4:40 PM Permalink | Trackbacks | Comments (10)

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Comments

As long as nearly half of the country is convinced that government inaction, corporate greed, the decimation of social programs, and the disappearance of the middle class are all steps in the right direction, we are doomed.

Not just doomed to repeat history. Doomed to relive it ten-fold.

[sigh...]

Posted by: chrenson on August 19, 2010 at 5:02 PM | PERMALINK

We're going to need a second stimulus that implements an overhaul of this DOA economy. Jump-starting manufacturing, implementing new technologies and retraining the workforce is going to require massive government infusions.

There is no high road to be taken this November. Dems are going to have to make this case in the strongest and bluntest terms possible, and demand that the repubs provide specifics on exactly how they plan to revive the economy.

Given many Dems responses to the NY community center fiasco, it doesn't look good.

It is time to take a stand. No do-overs on this one.

Posted by: bdop4 on August 19, 2010 at 5:25 PM | PERMALINK

I read a lot of the progressive blogs and one constant theme is how much progressives are disappointed with how Obama said all the right things to get himself elected, but once elected all the talk about "change" kind of went away as Obama went right to the center and actually even to center right. Well we've all verbalized our disappointments to each other and now I believe the time has come for action. What we need is to let Obama and Congress see that we have come to the end of the line with our verbalizing and are now going to put actions into play. What we as progressives need to do is to march on Washington not in the thousands but in the millions to let Obama and Congress know just by the sight of us that we are seriously going to "hold his feet to the fire" just as he told us to. We're not going to talk about it like he does and then do nothing except bow to the powers that be. Nothing has ever come to be without the actions of the people. Millions of people have been thrown under the bus by the pols in DC. Let's show them its a two - way street. MLK and the progressives of his day peacefully marched on DC and it got their attention. Ghandi and his followers peacefully marched thru India and look what they achieved. These "professional pols" must learn that we the people can and will impose "term limits" on them if they refuse to do what they say when they want us to vote for them. We need to get up off our asses and hit the streets of DC. If there are millions of us-- what are they going to do, arrest us?

Posted by: Chris on August 19, 2010 at 5:53 PM | PERMALINK

This has been said before and will be said again...

Obama and the Congressional Democrats sealed their fate and ours when they buckled to the Republicans, shrunk the stimulus and loaded it up with tax cuts, in return for nothing. Those of us in the real world know that Republican economics doesn't create jobs, never has, never will. It simply enriches their base.

Posted by: Larry on August 19, 2010 at 6:39 PM | PERMALINK

"...Republican opposition to it really is ridiculous. But it's not the kind of sweeping measure that's going to turn around a growing jobs crisis..."-Benen

Republican opposition has nothing to do with the bill. They are just trying to increase failure anywhere possible on the part of the dems...even at the peril caused the nation. They've admitted they will not cooperate with any democratic idea. They just want failure everywhere because they believe it will help them get elected no matter that they have no solutions to any of the problems facing our nation.

How anyone can even be thinking about voting republican when they've demonstrated over and over again that party politics trumps the good of the nation.

Their proven hypocrisy is manifested in their campaign slogan..."Country First"...but when has that been true with this party. The party of name calling and blaming, constantly lying with no workable answers or solutions...the party of hypocrisy and obstruction does nothing for our country, just each other. Their motivation is never about policy just party power.

Posted by: bjobotts on August 19, 2010 at 7:00 PM | PERMALINK

The problem is that aside from another stimulus package, which will alleviate the problem temporarily (like the first stimulus package did), there's not a lot that the government can do.

Economic growth is a byproduct of confidence in the economy, and right now people simply aren't very confident. Their finances are extremely streched, they're weighed down by debt, and nervous about whether or not they will be laid off or asked to take a pay cut.

Simply put, there is no reason whatsoever for people to be confident about the future, and until that changes the US economy will continue to struggle to gain traction.

Posted by: mfw13 on August 19, 2010 at 7:16 PM | PERMALINK

That's why we progressives have got to go on the offensive. We can't allow the repugs to get back in power. We have got to mobilize and show the Dems that we will not put up with their bullshit any longer. We have to stick together and by doing so force the Dems to keep their promises. Let's flood the streets of DC with peaceful protest with as I said in an earlier post with millions and let them dare to say we can't keep our promises.

Posted by: Chris on August 19, 2010 at 7:24 PM | PERMALINK

"Simply put, there is no reason whatsoever for people to be confident about the future, and until that changes the US economy will continue to struggle to gain traction."

There won't be anything to be confident in. Let's be honest here, the terrible, unavoidable truth (as Tennessee Williams said), the Titanic has hit the iceberg. We won't sink away into oblivion, but what emerges from all of this (which is far from over) will be something very different than we know now. We're between what was and whats next. Job creation? Most of those eventual jobs won't even touch this country. they'll go directly overseas. We're a huge bloated dying whale surrounded by sharks. Our system has rotted, our culture is base, the american people have become petty and bitter and mean-spirited...and lazy. I just don't think this is a "cycle" this is an historic shift.

Posted by: SaintZak on August 19, 2010 at 7:27 PM | PERMALINK

Do you mind start a campaign to get Obama to recess appoint his three FOMC member nominations?

Something like Fill. The. Damm. FOMC. NOW!

Frankly, this small business bill is peanuts compared to a FOMC commited to achieving its mandate of price stability and full employment.

The biggest mistake Obama has made is not filling the board ASAP. It will cost Dems the House and maybe the Senate.

If he doesn't act soon it will cost him his relection and then say good bye to all the accomplishments of the last two years because they will not survive.

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Posted by: gaga94 on August 20, 2010 at 10:34 AM | PERMALINK
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