• American Economy,  Barack Obama

    United States Poverty Rate Soars – Nearly 1 in 6 Americans

    Remember in 2008, when Senator and then Presidential candidate Barack Obama told Joe the Plumber about “spreading the wealth around.”

    Guess it wasn’t wealth that Obama spread around.

    The ranks of U.S. poor swelled to nearly 1 in 6 people last year, reaching a new high as long-term unemployment woes left millions of Americans struggling and out of work. The number of uninsured edged up to 49.9 million, the biggest in over two decades.

    The Census Bureau’s annual report released Tuesday offers a snapshot of the economic well-being of U.S. households for 2010, when joblessness hovered above 9 percent for a second year. It comes at a politically sensitive time for President Barack Obama, who has acknowledged in the midst of his re-election fight that the unemployment rate could persist at high levels through next year.

    The overall poverty rate climbed to 15.1 percent, or 46.2 million, up from 14.3 percent in 2009.

    Reflecting the lingering impact of the recession, the U.S. poverty rate from 2007-2010 has now risen faster than any three-year period since the early 1980s, when a crippling energy crisis amid government cutbacks contributed to inflation, spiraling interest rates and unemployment.

    Measured by total numbers, the 46 million now living in poverty is the largest on record dating back to when the census began tracking poverty in 1959. Based on percentages, it tied the poverty level in 1993 and was the highest since 1983.

    The share of Americans without health coverage rose from 16.1 percent to 16.3 percent — or 49.9 million people — after the Census Bureau made revisions to numbers of the uninsured. That is due mostly because of continued losses of employer-provided health insurance in the weakened economy.

    One term President cannot happen too soon.

  • American Economy,  Barack Obama

    Photo of the Day: Obama Goes On Vacation While Unemployment Claims Climb

    Matt Drudge is giving President Obama the Herbert Hoover treatment but……

    Jobless Claims in U.S. Top Forecast

    More Americans than forecast filed applications for unemployment benefits last week, signaling the labor market is struggling two years into the economic recovery.

    Jobless claims climbed by 9,000 to 408,000 in the week ended Aug. 13, the highest in a month, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected a rise in claims to 400,000, according to the median forecast. The number of people on unemployment benefit rolls rose, while those receiving extended payments fell.

    Companies like Bank of New York Mellon Corp. (BK) are paring staff, one reason consumers are limiting their spending, which accounts for about 70 percent of the economy. Unemployment at 9.1 percent helps explain why Federal Reserve policy makers last week pledged to hold interest rates at a record low until at least mid-2013 to spur growth.

    “People continue to get laid off,” David Semmens, a U.S. economist at Standard Chartered Bank in New York, said before the report. “The uncertainty in the economic outlook is continuing to give hiring managers sleepless nights and is keeping businesses from expanding. We have an incredibly long way to go” to get a healthy labor market, Semmens said.

    Mr. President, a new jobs speech/program in September is too little and way too late.

  • American Economy,  Polling,  Unemployment Rate

    Poll Watch: American Unemployment Rate Up to 9.1% in Mid-August



    According to the latest Gallup Poll.

    Unemployment, as measured by Gallup without seasonal adjustment, is 9.0% in mid-August — compared with 8.8% at the end of July and 9.1% in mid-August 2010.

    In the meantime, underemployment as measured by Gallup shows some modest improvement.

    Underemployment, a measure that combines the percentage of workers who are unemployed with the percentage working part time but wanting full-time work, is 18.2% in mid-August — compared with 18.0% at the end of July and 18.3% in mid-August 2010.

    The chart:

    The youngest and oldest workers continue to struggle in the economy. Also, the less educated.

    One worrisome aspect of the current situation is that the U.S. economy simply has not been growing fast enough — as reflected in first half GDP — to create the number of new jobs necessary to meet population growth, let alone significantly reduce the unemployment rate. This is consistent with Gallup’s finding that unemployment now is essentially no better than it was at this time in 2010.

    In particular, it appears Americans 65 or older who want to continue to work are having more of a problem finding a job than they did a year ago. Unemployment among this group increased to 8.2% this year from 6.7% a year ago. It may be that more baby boomers want to or need to keep working as they reach retirement age. Or, the losses on Wall Street over the past couple of years may be making many older Americans postpone retirement. Whatever the reasons, the job situation facing older Americans seems to be deteriorating.

    At the other end of the age spectrum, unemployment hovers around the 12% level among those aged 18 to 29 (at 12.4% in mid-August, up from 11.9% a year ago) and among those with a high school education or less (11.9%, vs. 12.0%). Continued high unemployment among these two groups supports the notion that the prolonged and historically high unemployment rates of the past several years signify a serious structural unemployment problem in the U.S.

    And, regionally employment in the Eastern part of the United states appears to have deteriorated from a year ago. It is unchanged in the South while unemployment has declined in the West and Midwest.

    So, what are the implications?

    President Obama and incumbent Members of Congress are looking for improving employment numbers. They are not and remember NO incumbent President has been re-elected with a national unemployment figure above 8 per cent, unless the trend like in the Reagan years is demonstrably improving.

    The economy is stagnant and unemployment is NOT improving.

    A danger sign for incumbent POLS, particularly with Senior Citizen voters who DO turn out and VOTE.

  • American Debt Linit,  American Economy,  Harry Reid,  John Boehner

    Harry Reid Says Senate Will Defeat Boehner Debt Limit Plan Tonight – Then What?

    Then, the deal making will begin.

    The Senate will take up, and vote down, House Speaker John Boehner’s bill to raise the federal debt ceiling immediately after its anticipated House passage Thursday evening, Senate Majority Leader Harry Reid, D-Nev., said.

    “As soon as the House completes its vote tonight, the Senate will move to take up that bill. It will be defeated,” Reid said, citing a letter sent last night to Boehner in which all 53 Democratic Caucus members vowed to vote against the measure if it passes. “No Democrat will vote for a short-term Band-Aid that would put our economy at risk and put the nation back in this untenable situation a few short months from now.”

    Boehner was still working to round up votes Thursday. But both parties now expect his measure to narrowly pass over Democratic opposition.

    So, what are the options?

    Reid has two options: He could “table” the proposal, postponing its consideration indefinitely, or bring it up for a vote, which would kill the bill directly. The advantage of tabling is that it’s faster. Under the byzantine rules of the Senate, the Majority Leader would have to wait about two days before being able to bring the House bill up for a vote, whereas tabling the bill could take just a day and a half. The disadvantage of tabling is that Republicans will insist that Boehner’s proposal had a chance in the Senate, and that Reid was simply afraid that it would pass. But with the Aug. 2 approaching, Democratic aides think tabling is more likely.

    Once Reid kills the bill, there are two new paths he could take: He could bring his own plan up for a vote or he could try to come up with a compromise plan with Boehner and Senate Minority Leader Mitch McConnell.

    Since Dingy Harry’s bill has NO chance of passing in the House, the deal making will begin.

    But, of course, there will be plenty of blaming the other side and at the last minute there will be a deal or the August 2nd deadline passes which will probably prove to be a non-event.

  • American Debt Linit,  American Economy,  Polling

    Poll Watch: 70% Say Debt Ceiling Will Be Raised – 42% Say Long Term Government Spending Will NOT Be Reduced

    According to the latest Rasmussen Poll.

    With less than five days left until the federal government could begin defaulting on its debts, voters continue to express unhappiness with both sides of the debt ceiling debate. While most voters continue to believe the debt ceiling will be raised before the government defaults, most don’t think the president and Congressional Republicans will agree on significant long-term spending cuts before the 2012 elections.

    The latest Rasmussen Reports national telephone survey of Likely Voters shows that 70% believe it’s at least somewhat likely that the debt ceiling will be raised before the government begins defaulting on its debts. Only 18% don’t think the debt ceiling will be raised by Tuesday, while another 12% are undecided. These findings include 33% who say a debt ceiling increase is Very Likely and just three percent (3%) who think it’s Not at all Likely to happen

    However, less than half of voters (42%) say it’s likely President Obama and congressional Republicans will reach an agreement to significantly cut long-term government spending trends before the 2012 elections, including just eight percent (8%) who say it’s Very Likely. Fifty-one percent (51%) don’t believe it’s likely the two sides will reach this agreement, including 15% who say it’s Not At All Likely.

    Only 35% of voters nationwide approve the way the president and congressional Democrats are handling the debt ceiling debate, while most (61%) disapprove.

    Republicans aren’t off the hook either: 38% approve of the way the GOP are handling the debate while 57% disapprove. Voter sentiments about both sides are similar to those found last week.

    You can fool some of the people some of the time.

    All of the drama and for what?

    The Boehner or Reid Plan?

    Move on to the 2012 elections because nothing is going to happen until there is a new Senate and/or President.

  • American Debt Linit,  American Economy,  John Boehner

    Updated 11 AM EDT: The Boehner Debt-Llimit Plan GOP Whip List

    Whipping The Boehner Proposal To Raise The Nation’s Debt Ceiling

    The nonpartisan Congressional Budget Office reported Wednesday that House Speaker John Boehner’s revised proposal to raise the debt ceiling deficit reduction plan would reduce budget deficits by about $915 billion over 10 years through FY2021. With the bill slated to hit the House floor Thursday, Boehner is trying to secure the necessary number of votes needed to pass the measure.

    A vote originally scheduled for Wednesday was delayed late Tuesday amid disunity within the GOP conference and a previous report from the CBO that Boehner’s plan would accomplish cuts $150 billion below the $1 trillion target House Republicans want.

    National Journal has compiled a list of Republican Members who have committed to voting no, and those who have declared they are undecided. We’ve also included the stances of notable yes votes as well as the positions of notable Democrats, based on the recent House vote on the GOP’s “Cut, Cap And Balance” measure. If no Democrats support the Boehner plan, the maximum number of votes the House speaker can lose and still pass the measure is 23. Right now, 19 Members have committed to voting no.

    Here is the revised NO GOP List:

    NO (19)

    Rep. Roscoe Bartlett, R-Md.
    Rep. Trent Franks, R-Ariz.
    Rep. Louie Gohmert, R-Texas
    Rep. Phil Gingrey , R-Ga.
    Rep. Jim Jordan, R-Ohio
    Rep. Todd Akin, R-Mo. 
    Rep. Tim Huelskamp, R-Kan. 
    Rep. Jason Chaffetz, R-Utah
    Rep. Michele Bachmann, R-Minn. (multiple news reports) 
    Rep. Ron Paul, R-Texas 
    Rep. Joe Walsh, R-Ill.
    Rep. Tom Graves, R-Ga. (National Review
    Rep. Jeff Landry, R-La. (National Review)
    Rep. Dennis Ross, R-Fla.
    Rep. Paul Broun, R-Ga.
    Rep. Jeff Duncan, R-S.C. (The Hill)
    Rep. Steve King, R-Iowa (The Hill
    Rep. Steve Southerland, R-Fla. (The Hill)
    Rep. Chuck Fleischmann, R-Tenn. (Washington Post)

    LEANING NO (3)

    Rep. Tim Scott, R-S.C.
    Rep. Trey Gowdy, R-S.C. (The Hill)
    Rep. David Schweikert, R-Ariz.

  • American Debt Linit,  American Economy,  Harry Reid,  John Boehner

    Senate Democrats Send Speaker Boehner a Letter Favoring an American Debt Default?

    Senate Majority Leader Harry Reid is pictured as he speaks to the press following more U.S. debt reduction talks on Capitol Hill, July 26, 2011

    Well, something like that because their letter promises to reject Boehner’s Debt-Limit Plan.

    Fifty-three Democratic senators have signed a letter to House Speaker John A. Boehner saying they intend to vote against his plan for an increase in the debt ceiling, virtually assuring its defeat in the Senate even as the speaker lines up Republican votes to pass it in the House on Thursday.

    Votes are not final until they are cast. But if the Democrats hold to their promise in the letter, Mr. Boehner’s plan for a six-month increase in borrowing authority will not make it to President Obama’s desk.

    “We heard that in your caucus you said the Senate will support your bill,” the senators say in the letter. “We are writing to tell you that we will not support it, and give you the reasons why.”

    In the letter, the senators argue that a short-term extension of the debt ceiling would “put America at risk” and “could be nearly as disastrous as a default.”

    Some compromise there, eh?

    I say the House GOP and whatever Democrats who dare, pass the bill anyway and dare Dingy Harry to hold it up for defeat in the Senate.

    To the Democrats then, you voted twice against House passed plans, so if it breaks the American economy, you own it baby – House/Senate Democrats and President Obama.

    Here is the double dare letter to Boehner:

    Dear Speaker Boehner,

    With five days until our nation faces an unprecedented financial crisis, we need to work together to ensure that our nation does not default on our obligations for the first time in our history. We heard that in your caucus you said the Senate will support your bill. We are writing to tell you that we will not support it, and give you the reasons why.

    A short-term extension like the one in your bill would put America at risk, along with every family and business in it. Your approach would force us once again to face the threat of default in five or six short months. Every day, another expert warns us that your short-term approach could be nearly as disastrous as a default and would lead to a downgrade in our credit rating. If our credit is downgraded, it would cost us billions of dollars more in interest payments on our existing debt and drive up our deficit. Even more worrisome, a downgrade would spike interest rates, making everything from mortgages, car loans and credit cards more expensive for families and businesses nationwide.

    In addition to risking a downgrade and catastrophic default, we are concerned that in five or six months, the House will once again hold the economy captive and refuse to avoid another default unless we accept unbalanced, deep cuts to programs like Medicare and Social Security, without asking anything of the wealthiest Americans.

    We now have only five days left to act. The entire world is watching Congress. We need to do the right thing to solve this problem. We must work together to avoid a default the responsible way – not in a way that will do America more harm than good.

    And, here I thought Dingy Harry “The Iraq War is Lost” Reid was a deal maker?

    Default, here we come….

  • American Debt Linit,  American Economy,  Fred Thompson,  John Boehner

    The Debt-Limit Debate: Call it a Day and a Win GOP

    House Speaker John Boehner of Ohio, right, and Republican Conference Chairman Rep. Jeb Hensarling, R-Texas , center, listen as House Majority Leader Eric Cantor of Va., left, speaks during a news conference at The Republican National Committee on Capitol Hill in Washington, Tuesday, July 26, 2011

    Am I suggesting the GOP House Tea Party Caucus should hold their nose and vote for the Boehner debt-limit plan?

    Yes, if you want to beat President Obama in 2012.

    The debt-limit debate is heading toward a culmination, with President Obama reduced to pleading for the public to support a tax increase and Speaker John Boehner and Senate Majority Leader Harry Reid releasing competing plans that are the next-to-last realistic options. The question now is whether House Republicans are going to help Mr. Boehner achieve significant progress, or, in the name of the unachievable, hand Mr. Obama a victory.

    Mr. Obama recognizes these stakes, threatening yesterday to veto the Boehner plan in a tactical move to block any Democratic support. The White House is afraid that it will pass the House and then become the only debt-ceiling vehicle if Mr. Reid can’t get 60 votes for his own proposal in the Senate. This would short-circuit Mr. Obama’s plan to blame the GOP for a U.S. credit downgrade, any market turmoil, a possible default, and the lousy economy too.

    Read all of the rest of the piece.

    The fact is American voters WILL blame the GOP for a further collapse in the economy and the polling is clear on the matter. Plus, there is no need for frightened credit markets or a possible default.

    As Fred Thompson wrote:

    We will never achieve entitlement or tax reform with a doctrinaire liberal in the White House. Any agreements to do so in “out years” would probably be unenforceable even if agreement were achieved. And we can only do so much while controlling one half of one branch of government. Ladies and Gentlemen of the House Republicans, you have laid some great groundwork to rectify both of those situations. Now it is the time to accept a well-won victory and move on.

    Thompson is RIGHT – time to move on, vote for the Boehner Plan and if Obama vetoes it, then he broke it.