Unemployment rate at the highest level in a quarter century. 651,000 jobs lost in February alone. 8.1%
The headlines this past week certainly were not pretty and sent the markets down further than it has ever been since 1997. Based on stock market data, we just went back in time over a decade. Based on economic and employment data, we travelled back over 50 years. Sources close to the White House say Obama and his staff have been “overwhelmed” by the economic meltdown and have voiced concerns that the new president is not getting enough rest.
But have no fear. Obama has vowed to redouble their work to revive the stricken economy. The only question remains: How?
Unemployment has already reached the average rate the White House projected for the whole year. In addition to passing the largest stimulus package and the largest budget in US history, Obama is facing a plummeting stock market down 20% since his inauguration, the possible bankruptcy of General Motors, the war in Iraq, and rising unemployment. At the same time, he has put forth efforts to achieve universal healthcare, overhaul education andbegin a green energy revolution.
Now he plans to redouble their work. Is he doing too much too quickly?
The President’s $787 billion stimulus plan aims to create or save 3.5 million jobs but the U.S. has already lost 4.4 million since the recession began in December 2007, with more declines coming. “These aren’t just statistics, but hardships experienced personally by millions of Americans who no longer know how they’ll pay their bills, or make their mortgage, or raise their families,” Obama said in his weekly address.
Obama said yesterday that he’s “committed to doing all that’s necessary to address this crisis.”
Key Obama economic advisor, Christina Romer said that despite the grim economic news, better times would return, and would eventually cause a rebound on the stock markets.”The best thing we can do for American consumers is exactly what we’re doing, which is creating jobs, getting banks in a position where they can lend again and keeping people in their homes.”
She’s right. So is Obama. That is why they need to keep their focus on repairing the banking system, implementing the stimulus and instilling consumer confidence rather than launching his green energy revolution and efforts to achieve universal healthcare. I know going green and healthcare is important, but that can wait till next year.
I have always said that in order to look toward the future, we must focus on the present. That is why Obama needs to focus on our economy right now, if he wants his green revolution and universal healthcare policies to stand a fighting chance.
Earlier this week, Obama warned that improvements were highly unlikely in the first quarter of 2009. Guess what? The first quarter is almost over.
