President Barack Obama was delivering his address on the economy today at Georgetown University. (Chicago Tribune photo by Nancy Stone.)
by Mark Silva
President Barack Obama, who has spoken of seeing "glimmers of hope'' in the American economy, today plans to temper his optimism with a clear-eyed look at the challenges of rising unemployment and other problems still plaguing the economy - conceding that there will be "more pain before it ends.''
"There is no doubt that times are still tough,'' the president plans to say today, in a major address on the economy at Georgetown University. "By no means are we out of the woods just yet. But from where we stand, for the very first time, we are beginning to see glimmers of hope.''
Key economic indicators, more than one year into an official recession, will get worse before they get better, White House advisers are telling the president. Yet Obama, during the past few days, has attempted to deliver reasons for hope, as he will again today in his address at Georgetown, in Washington.
While White House economic counsel Larry Summers has maintained that the "free fall'' of the nation's economy has stopped, Christine Romer, chief of the president's council of economic advisers, and others have warned that unemployment still will rise this year (see that interview below).
The $787-billion economic stimulus that Obama sought and signed into law is starting to have an effect, with 2,000 contracts for public works signed, he said this week. And homeowners will find relief in historically low home-mortgage lending rates, he said last week.
"This is all welcome and encouraging news, but it does not mean that hard times are over,'' the president plans to say, according to excerpts of his remarks released by the White House this morning.
" 2009 will continue to be a difficult year for America's economy,'' Obama plans to say. "The severity of this recession will cause more job loss, more foreclosures and more pain before it ends.''
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The president, with polls showing that a strong majority of Americans have confidence in his approach to reviving the economy, faces a delicate task of recognizing continuing problems while offering a coherent vision for improvement and realistic cause for optimism.
On a day in which the stock market opened slightly down, after weeks of a remarkable revival, the president also will take note of the inevitable: "The market will continue to rise and fall.''
Reassuring the public that a strategy is at work is part of the longer-term challenge for a president still enjoying 60-percent job-approval or higher in most surveys in the midst of a recession.
"I want to step back for a moment and explain our strategy as clearly as I can,'' Obama plans to say today. "I want every American to know that each action we take and each policy we pursue is driven by a larger vision of America's future - a future where sustained economic growth creates good jobs and rising incomes.''
The American Recovery and Reinvestment Act, federal assistance for the banks and home mortgage markets, support for the ailing auto industry and other tactics have been "necessary pieces of the recovery puzzle,'' the president will say. "Taken together, these actions are starting to generate signs of economic progress.''
Fresh from Easter services in Washington over the weekend, the president will offer a parable from the Sermon on the Mount "that tells the story of two men. The first built his house on a pile of sand, and it was destroyed as soon as the storm hit.
"But the second is known as the wise man, for when 'the rain descended, and the floods came, and the winds blew, and beat upon that house...it fell not: For it was founded upon a rock.'"
"We cannot rebuild this economy on the same pile of sand,'' the president plans to say. "We must build our house upon a rock.''
Obama repeatedly has spoken of the situation that he "inherited,'' and he will again today.
"We also arrived here because of a fundamental weakness in our political system,'' he will say. "For too long, too many in Washington put off hard decisions for some other time on some other day. There's been a tendency to score political points instead of rolling up sleeves to solve real problems.
"This can't be one of those times,'' he will say. " The challenges are too great. The stakes are too high.''
Comments
"You got that right," as they say in Minnesota.
Or, as Ronald Dumsfeld might say, "It's going to be a long, hard slog."
Posted by: ornery | April 14, 2009 10:57 AM
One part of the economy is booming: bribery by Illinois Democrats. The Sun Times is reporting that Cong. Jesse Jackson Jr.'s emissaries promised Blago they'd raise $5 million for Blago if he appointed Jackson to the open senate seat. See http://www.suntimes.com/news/metro/blagojevich/1523779,jesse-jackson-blagojevich-senate-seat-041309.article for more on the cesspool that is Illinois Democratic Party politics.
Posted by: Ed Murrow | April 14, 2009 11:49 AM
We all wish Obama's policies on the economy to succeed, but we are getting tired of his blaming others. He was in the Senate for two years and supported the very programs -- Fannie Mae, Freddie Mac and Acorn -- that ignited the recession. It's time for Obama to grow up and accept the responsibilty that both Democrats and Republicans in the Congress created...him included. Be a man!
Posted by: Derrick | April 14, 2009 12:02 PM
Well, I guess when president Obama rammed through Congress the massive - biggest ever - filled with pork federal stimulus without a minute's worth of reading or debate, he meant to say, "Things will get much worse before they ever get better".
But instead he said, "This is so serious right now that immediate action must be taken. There's no time for rational debates or even reading what's in this massive thing, pass it NOW or the USA Economy will be in the tank tomorrow!"
The DOW has a different meaning today than it did 60 days ago as well. Before, it really meant nothing more than an economic poll and not to be considered as a standard for success or failure.
I wonder, will he ever admit to being part of the problem? or will he continue to toss out the campaign rhetoric as if he's not where he wants to be and continue with the blame game?
Posted by: springfield | April 14, 2009 12:19 PM
It's going to take awhile to fix the damage done by the frat boy. An economy is more than a ponzi scheme of rising housing values. There has to be actual production behind everything.
Posted by: joe | April 14, 2009 12:48 PM
I guess that any detirmation depends on when we pay back the money for the porkulus spending package.
If you were hurting for cash and then went to the bank and got a giant loan, would it count that you were living comfortably at that moment? That money has to be paid back. How will we do then?
Posted by: Tim | April 14, 2009 12:56 PM
sprinfield said: '"Well, I guess when president Obama rammed through Congress the massive - biggest ever - filled with pork federal stimulus without a minute's worth of reading or debate, he meant to say, "Things will get much worse before they ever get better".
But instead he said, "This is so serious right now that immediate action must be taken. There's no time for rational debates or even reading what's in this massive thing, pass it NOW or the USA Economy will be in the tank tomorrow!" '
Sound familiar? It should because that's exacly what happened with the first $700 bil bailout under Bush! Are you sure you'e not quoting Bush?
The "pork" while I am not a fan, is only approx 1.5% of the total bill. More partisan BS - not aminute's worth of reading? come on now!
Posted by: djx | April 14, 2009 1:31 PM
Be sure to come to the Tax Day Tea Party protest tomorrow, Wednesday, April 15th, at 12:00 Noon. The protest rally will be held at Federal Plaza, located at Dearborn and Adams.
Make your own protest sign and come to the event. Remeber, it will be at FEDERAL PLAZA. See you there!
Posted by: Average Joe | April 14, 2009 1:57 PM
markets go up and markets go down. Recessions come and recessions go.
Obama is trying to take credit for what would happen normally. If anything, the actions he has taken prolonged the recession and possibly made it worse than it would have been.
That's what happens when you elect someone unqualified for the job.
Posted by: moreofthesame | April 14, 2009 2:09 PM
I don't know why reporters just don't get the script right from the teleprompter and save all that time an energy of going over to where the Big O is speaking . . . .
The LAST thing O wants to have happen is the economy turn around before he rams through another $3 Trillion in goodies for his pals.
So of course things will stay bad until His O-ness has put us into another $10 Trillion in debt.
Posted by: Dan C | April 14, 2009 2:12 PM
How are public works contracts going to help the economy? State and Federal government is NOT laying off workers because the politicians are afraid of the unions. So the contracts aren't providing jobs for people who are unemployed. The contracts are just providing more tax dolars for the bureaucrats to steal. And who will pay for this? The taxpayers working in the private sector.
America is fucked!
Posted by: James Sullivan | April 14, 2009 2:25 PM
As if to prove the President right the Dow has declined after he finished speaking.
Posted by: ejhickey | April 14, 2009 2:35 PM
Obama is a disaster.
The "stimulus" isn't going to help accountants, most engineers, marketing people, artists, graphic designers, computer people, etc.
Besides a "stimulus" that won't stimulate much, he's raising taxes and increasing regulations.
People will be able to measure the tax increases, but the regulations will take a long time to have rules written and for enforcement standards to be figured out.
This is going to be a very long recession with a slow, jobless recovery.
Who wants to hire with these Democrats running things? They hate business!
Posted by: Alz | April 14, 2009 2:39 PM
So "Average Joe," have you guys figured out yet what it is that you are protesting?
"..... the very programs -- Fannie Mae, Freddie Mac and Acorn -- that ignited the recession." Posted by: Derrick Totally false, Derrick. Are you a dittohead?
Posted by: rupert | April 14, 2009 2:45 PM
"...we are beginning to see glimmers of hope.'' - No thanks to any of BO's policies
.
"Christine Romer, chief of the president's council of economic advisers, and others have warned that unemployment still will rise this year" - Thanks Ms. Romer for stating the obvious.
.
"The $787-billion economic stimulus that Obama sought and signed into law is starting to have an effect, with 2,000 contracts for public works signed, he said this week." - How much of this money has hit the economy? How much of the money hit the economy while some leading economic indicators were turning in February and March?
.
"Taken together, these actions are starting to generate signs of economic progress.'' - Such as???
.
"For too long, too many in Washington put off hard decisions for some other time on some other day." - Just when this spendulus bill going to be paid for?
.
BO's telepropmter needs to take an economic course.
Posted by: Terry | April 14, 2009 9:38 PM
Looks as if all those Replican trolls from the election season have found work again.
However, the polls show very high confidence in Obama.
Also, public opinion holds (correctly) that he inherited the mess from the Replicans and did nothing to cause it.
So, back to the drawing board, y'all!
Posted by: ornery | April 15, 2009 12:51 AM
Let's face it this President is flying by the seat of his pants. What a stupid statement to make "Were not out of the woods yet". Only about 250 million people in this country don't need him to tell us that. Here's four things he needs to do, Stop blaming Pres. Bush, Stop spending, and Stop taxing, and start listening to the American people. Other than that maybe should resign.
Posted by: Paul | April 15, 2009 8:58 AM