Obama: Job losses demand stimulus: The Swamp
The Swamp
Chicago Tribune

The president assembles a new team of economics and business leaders.

Posted February 6, 2009 12:10 PM
Obama and Volcker.jpg

President Barack Obama, accompanied by Paul Volcker, former Federal Reserve chairman and chairman of the President's Economic Recovery Advisory Board, calling on Congress to act on an economic stimulus. (Photo by Ron Edmonds / AP)

The Swamp

by Mark Silva

President Barack Obama sees in the newest report of unemployment today - 3.6 million jobs lost since the start of the recession a little over a year ago - another signal that Congress cannot afford to wait on a stimulus.

With nearly 600,000 jobs lost last month, the toll taken by a recession that officially began in December 2007 has risen to 3.6 million, the Labor Department reports.

"Last month, another 600,000 Americans lost their jobs,'' Obama said, in announcing a new team of economic advisors headed by economist Paul Volcker. Assembling corporate leaders and universities, the president says they represent voices "beyond the Washington echo chamber.''

Noting "the single worst month of job loss in 35 years,'' Obama said, "that's 3.6 million Americans who wake up every day wondering how they are going to pay their bills, stay in their homes and provide for their children.

"That's 3.6 million Americans who need our help.''

As the Senate heads toward a possible vote on its $900-billion measure today, Obama - acknowledging that the bill under debate "is not perfect,'' while insisting that it is of "the right size... and scope'' to confront the challenge the nation faces -- suggested that senators too should find a sense of urgency in the newest numbers.

"I hope they share my sense of urgency and draw the same, unmistakable conclusion: the situation could not be more serious. These numbers demand action,'' he said. "It is inexcusable and irresponsible for any of us to get bogged down, distraction, delay and politics as usual while millions of Americans are being put out of work. It is time for Congress to act.''

While Republicans complain that the stimulus is too laden with new spending and too short on tax relief, Obama maintains that spending is precisely the stimulus needed.

The president voiced this in tougher terms Thursday night, in addressing the House's Democrats at a retreat in Virginia with pointed criticism for Republicans demanding more tax relief. But he reiterated the argument today.

"The bill before Congress isn't perfect, but it is absolutely necessary,'' Obama said. "W There may be provisions in the bill that need to be left out. There may some provisions that need to be added. But broadly speaking, it is the right size. It is the right scope.''

The president has attempted to underscore the urgency of congressional action by repeating this week that an economic crisis could turn to "catastrophe'' with inaction.

"This is not some abstract debate,'' Obama said today in an East Room appearance in the White House.

"It is an urgent and growing crisis that can only be fully understood through the unseen stories that lie underneath each and every one of those lost jobs,'' he said. "Somewhere in America, a small business has shut its doors, a family has said goodbye to their home, a young parent has lost their livelihood and doesn't know what's going to take its place.

"These Americans are counting on us,'' the president said. "All of us in Washington must remember that we're here to work for the American people. And if we continue to drag our feet and fail to act, this crisis will turn into a catastrophe. We'll continue to get devastating job reports like today's - month after month, year after year.

"These aren't my assessments - these are the assessments of independent economists,'' he said. "Millions more jobs will be lost. More families will lose their homes...

"That's the result of the inaction, and it's not unacceptable to the American people,'' he said.

"They did not choose more of the same in November,'' said Obama, drawing on the capital that he believes he carries from November's election. "They did not send us to Washington to get stuck in partisan posturing, or to turn back to the same tried and failed approaches that were rejected, because we saw the results. They sent us here to make change, and the expectation that we would act.''

The president's new economic advisory board includes:


-- William H. Donaldson, Chairman, SEC (2003-2005)

-- Roger W. Ferguson, Jr., President & CEO, TIAA-CREF

-- Robert Wolf, Chairman & CEO, UBS Group Americas

--David F. Swensen, CIO, Yale University

-- Mark T. Gallogly, Founder & Managing Partner, Centerbridge Partners L.P.

-- Penny Pritzker, Chairman & Founder, Pritzker Realty Group

-- Jeffrey R. Immelt, CEO, GE

-- John Doerr, Partner, Kleiner, Perkins, Caufield & Byers

-- Jim Owens, Chairman and CEO, Caterpillar Inc.

-- Monica C. Lozano, Publisher & Chief Executive Officer, La Opinion

-- Charles E. Phillips, Jr., President, Oracle Corporation

-- Anna Burger, Chair, Change to Win

-- Richard L. Trumka, Secretary-Treasurer, AFL-CIO

-- Laura D'Andrea Tyson, Dean, Haas School of Business at the University of California at Berkeley

 Martin Feldstein, George F. Baker Professor of Economics, Harvard University.

mdsilva@tribune.com


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Comments

Did he repeat that government spending is the only thing that can fix the economy?


This nation is on a direct path to oblivion. For the first time in my adult life, I am glad I do not have children. I do not think I could handle worrying about their futures...because in many respects, they would not have one. If the events currently unfolding were not so sad, I might actually laugh at the absurdity of the whole thing. This is truly a scary time....and we have lunatics running the show.


Ah, but we're on the way to Utopia. Can't you feel it? The Messiah is here. He brings Hope and Change with him. He will make all things well.


The unemployed don't need stimulus spending, they need tax breaks. Tax breaks work. Tax breaks are the very fabric of the American way of life. We must provide, protect and defend tax breaks. Every single person who is unemployed today is so because the company's they worked for were being overly taxed by our voluminous and gluttonous, in power two years, with no power to challenge a executive authority democratic congress. Bad,evil, democrats!!!

NOT!


Obama made a call to being more responsible whether it's govenment or the constituency. Change will not come over night. It took a long time to be in the position we're in, but we have to start now and accept the responsibility to make change happen.


Did he repeat that government spending is the only thing that can fix the economy?

Posted by: Jeff | February 6, 2009 12:26 PM


No...I believe he said lets leave it to the fiscally smart CEOs and wall street. They know better.


scottiesrule @12:41pm

Yes, I am worried for my kids. This rampant liberalism is killing us.

We try to teach them right and wrong, about how to be good people and a lot of the world is filled with the hopelessness and despair pushed by liberals and their lack of standards.

I am afraid that the whole country will experience the hopelessness, despair and death that has pervaded the inner cities since the liberals took control of those areas in the 60's.

It's spreading.


Yeah, teaching your kids to torture and rip people off is a much better lesson than feeling bad for people who have lost their jobs.


Ah, but we're on the way to Utopia. Can't you feel it? The Messiah is here. He brings Hope and Change with him. He will make all things well.

Posted by: Vast Right Wing Conspirator | February 6, 2009 12:51 PM

Why do you continue to repeate the same Limbaugh comments over and over? Your posts don't add much to the debate.


Interesting how (mostly) Republicans think that tax cuts will help people that are out-of-work! We need action for jobs now! Corporate tax cuts might help delvelop jobs in a few years -- but, we don't have the luxury of that time!


The unemployed don't need stimulus spending, they need tax breaks. Tax breaks work.
Posted by: kg123 | February 6, 2009 12:59 PM

I kinda think even giving the unemployed a 100% tax break is not going to help them. 100% of nothing is nothing. Unless of course you're talking about property tax but I don't see that anyway near "the silver bullet".


There was no urban blight prior to the 60s, that's right. The inner cities were paragons of honesty and lawfulness.

Ahh- the racial harmony we had when blacks new their place, and women too!

At least in the 50's a person, er, white male, could be elected without being baptized.


why is that i hear nothing these days about 39 p/b oil and the hundreds of billions not going out of this country to people that hate us? Yet. In july thats all you heard. How expensive it is. How oil is running out. How it will be 200 in no time... No doubt the media is about 30 percent responsible for the recession. They always find some gloom and doom to jam down the public.


What's the problem? He has a democratic house & senate. He doesn't need republican votes. If anyone is posturing it's him. If he honestly believes that this is the right thing to do then quit the grandstanding, it's already passed the house, steam roll past the critics and get the bill passed without republicans. To be up there grand standing and attacking your critics, when you don't need their support make you look insecure and ineffective. Grow some cahones please.


KG123......Sorry...I missed the sarcasim.


"Pork You Can Believe In."


I lost my job, got one, lost it again. The second job loss I can directly blame on the management of TARP, and the failure of Paulson to manage his accountablities effectively. This recovery bill is at risk because the Republicans failed to manage their recovery program (TARP if you are not following me). In a post-Sarbannes-Oxsley world, what happened to the TARP money is not only unforgivable, it's corrupt.


This bill is very small in pork and I think that after Collins and her associates get done with it there will be virtually none. Those who mouth off otherwise are just pig headed. Pun intended.

This bill will pass and when it is in its final form, it will be very close to what Obama wanted in the first place.


It's official. Obama is presiding over the greatest job crisis since the Depression and he obviously doesn't have a clue as to what to do. That life of no experience that the voters overlooked is coming home to roost...to the detriment of the American people.


tried and true is the tax relief method.
this is new deal tva garbage!
It WILL make us much weaker and prolong our pain. Stimulus via tax rebates and breaks for those companies seeking to created and compete!!
Pelosi is going to be the typhoid mary that gets us all economically sick. She is so disconnected from reality it is frightening.
This bill is FULL OF PORK!
I want names Barrack! YOU PROMISED NAMES


Just ran across this quote, attributed to Will Rogers in 1932:

"See where Congress passed a two billion dollar bill to relieve bankers' mistakes. You can always count on us helping those who have lost part of their fortune, but our whole history records nary a case where the loan was for the man who had absolutely nothing. Our theory is to help only those who can get along, even if they don't get a loan."

As for the current "stimulus package," tax cuts put more money into the hands of consumers at all levels of the economic system (and keep the same money out of the hands of bonehead legislators and their pet pork projects). But tax cuts are only part of the answer. Something must also be done to help people who are out of work (and thus would not benefit from tax cuts). But let's not pretend that all the supposed job creation in the current bloated stimulus bill will have any direct or benficial effect on the millions of people currently out of work. What, are we going to relocate them to the places where the money is going? That's just dumb. The benefit of all the pork will go where it always goes: to those who already have their noses in the trough.


Just ran across this quote, attributed to Will Rogers in 1932:

"See where Congress passed a two billion dollar bill to relieve bankers' mistakes. You can always count on us helping those who have lost part of their fortune, but our whole history records nary a case where the loan was for the man who had absolutely nothing. Our theory is to help only those who can get along, even if they don't get a loan."

As for the current "stimulus package," tax cuts put more money into the hands of consumers at all levels of the economic system (and keep the same money out of the hands of bonehead legislators and their pet pork projects). But tax cuts are only part of the answer. Something must also be done to help people who are out of work (and thus would not benefit from tax cuts). But let's not pretend that all the supposed job creation in the current bloated stimulus bill will have any direct or beneficial effect on the millions of people currently out of work. What, are we going to relocate them to the places where the money is going? That's just dumb. The benefit of all the pork will go where it always goes: to those who already have their noses in the trough.


I want the new administration to success, as the livelihood of all of us depends on that. But it is interesting to see how Obama is faring now that he actually has to govern and generate a concensus on legislation. It's not like the campaign where the lapdog media fell nicely into place when he spewed out rhetoric. Now you actually have to get congress(wo)men and senators into the fold. Much harder task. Let's hope he's up to the job we elected him to do.


If it is really going to be a stimulus, the spending has to be for now, 2009. Back loading a large portion of the spending to 2011 and 2012 is geared to only creating one job...Obama's


I think all the Republicans and their taxfree supporters should shut up. They caused the mess and have no right to talk. All the supporters of the Tax cuts seem to have no jobs as they are busy posting here. They need to realize that they are not going to get much out of the Tax cuts if they have no income.
I think the democrats should stop worrying about consensus and have this thing passed, no more pandering to the looser REPUBLICANS. If they don't like they can go live somewhere else...


There's your problem, Bill, you see the world through the prism of extremes. Wall Street lending and government spending are not only not the only two options, they're two of the least effective.


60 to 80% of the jobs created last year were created by small business. Government spending does not create jobs. It does not increase GDP. So, how do we get small businesses to create jobs? The same businesses who are already struggling? That's right, we spend $400,000,000 on STD prevention by the CDC. Wake up people, that's the kind of crap that's in the "stimulus" bill.


The guy is starting to sould like Bush. I guess everyone in politics think they can get stuff pushed thru if they try to make it sound like the end it near.


What they need to add to this bill is REMOVING the penalty for 401k withdrawals....more people than ever need that money to live, and losing 20% off the top is a killer.

Pay regular taxes on it like income, plain and simple, and the governments not losing anything....if they don't, get in line for a BK!


Hello, anybody out there? Congress and Obama have little or no control over the recession now. It will run it's course and be done. Stimulus or no stimulus, the economy will wring out the excess and eventually move on. With our economy so entwined with the world economy, the federal government is fooling itself if it thinks anything it does will make a significant difference.


When has massive government spending ever, ever "fixed" the economy? Don't even say FDR and New Deal - that did not take us out of the depression - WWII did! Typical of Democrats and Liberals, government can fix everything, even the mess they got us into. But they are in power, so we are so, so screwed.


The liberal press is totally aware that it made Butch, equally aware that it can break him. And that Butch knows that, and needs to
fear it. The press has been testing the waters in recent days, with even the
Marxists at CNN reporting that democrat support for the Obama Superfix Plan
is drying up. This is the only natural outcome of elections that are decided
by the tv press. DemBalls' Chris Mathews asked yesterday what kind of speech
prep Butch did when he needed to ask his kids how school had gone on a given
day. The press will keep things percolating until people get tired of it,
and it no longer sells anti-freeze or toilet tissue for the networks. Then they'll move on to something that does, perhaps Paris Hilton's torrid affair with a very handsome goat.

The president is a self-impressed academic. Teaching
is a bully pulpit for all the "should be" and "could be" ivory tower
nonsense and recrimination that Butch has indulged all through the campaign and right now. If the Republicans can hold off for even a week on approving
Butch's Budget Fix All or, God help us, block it entirely, it will give time
for a hefty dose of vitriolic, threatening crap to come out of our
distinguished president. There is nothing uglier than an ignored pedant. Politicians know how to be ignored; they live to fight another day. Academics don't have a clue as to how to be ignored. Butch started the flow
of ugliness yesterday with his angry, "this is not a game," and follows it today with overt name-calling. Americans tired
quickly of Jimmy Carter's finger-wagging and "moral malaise" talk. They will tire still more quickly of Butch's telling them they aren't as smart as he is. Meet the new boss, worse than the old boss.

It's almost too much to hope that the utter failure of presidential election in our election
politics could result in an insignificant rather than hugely destructive Obama presidency, but this might be the case. We have this strange trifecta going---the weakness and formerly hidden inadequacies of Butch emerging, the distracted Attention Deficit Disorder of the American people, and a growing awareness that all that the best-chosen words in the world won't matter a hill
of beans if the US economy is tanking.

This may prove the force to stifle this awful Venusian voice that NBC, ABC,CBS, and our dear Tribune put in the White House. International events could buoy Butch, but I suspect that there are plenty of people in North Korea, Libya, Iran, and Pakistan who see the Butch presidency as a self-pronounced and somewhat
humorous death sentence on the US, and will leave us alone til we break down of our own non-devices.


The new president is learning the Potomoc shuffle. You just can't send a bill to congress and expect flowers and candy.

We understand the urgency but we must get it right.


Butch....great name......useless post.


Let's stop trying to jam the whole head of lettuce into the grinder at once. How about picking out the pieces that most members agree can help get the system moving easiest. ie put cash and credit into the system to fuel purchasing. Everybody like it? PASS THAT PART.
Now what's next ? Infrastructure ? OK you government agencies bring your READY TO BUILD projects - Got an appropriate bid from a contractor that will not leave the project once the first employee steps into it until EVERY DETAIL of it is complete - not a day passes without a contractor giving FULL time and effort to that project before moving to another. We cannot stand for idle work sites with so many workers idle at home.
How about seeing that every dollar due to medical providers is paid by every government agency owing money. The feds and local governments must not fail the public by not delivering already promised but not funded benefits.
Put away the hard to grind and chew lettuce pieces of those government projects for so many "home assistance, home district" items for your OWN SELF - HOW ABOUT CONSIDERING EVERYONE ELSE'S SELF ONLY for a change. STOP TRADING VOTES FOR EACH OTHERS PET DEALS ONLY MEANT TO GET YOURSELVES REELECTED TRADING VOTES FOR PROJECTS IN YOUR OWN DISTRICT.
The only green the voting public is concerned about now is what we cal count in our pocket for a change . You the government are a shameful failure at protecting your own. Look at yourself in the mirror and think about what we think of your pomposity and arrogance of your presence. Terrorists do their business in the open with a towel around their head whereas you lawyers won't come out into the light and show us your work in the light of day - in terms every American can immediately understand where you stand by what you say.
Come eat lunch at the work site with us, share our dry bread and old cheese sandwich every day. By the way, drive yourself in your own car, pull up a bucket and sit around our fire.


John D., I wish you could only understand what you type. WWII was the largest government spending project, and yes, that did get us out of the depression. I will repeat and condense that one for your slow …..Government spending was responsible for getting us out of the great depression. The difference this time is that we are spending it on ourselves and not in a war environment. Oh, and I guess government spending also was responsible for creating jobs back then too, which is another lie that the pugs like to say now. Please start doing some critical thinking…..now is not the time to have crazy people making crazy statements to scared people.


This is leadership? Obama lets Pelosi and her left-wing nuts put together a pork package and says he supports it.


Then he does little else other than to throw out accusations and predictions of doom and gloom. He didn't author the package. He did nothing to sell it to anybody. And now we're all supposed to love it because he put his name on it.


But then again...he's a democrat. Spending and big government are what democrats do. By going to Pelosi, he pretty much ensured every possible spending initiative would be included. This is what we voted for.


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