There
was a lot of sharp media response to White House Communications
Director Dan Pfeiffer’s contention that “The average American”
does not view the economy through “the prism of GDP or unemployment
rates or even monthly jobs numbers” and that next year,
“People won’t vote based on the unemployment rate, they’re
going to vote based on: ‘How do I feel about my own situation?
Do
I believe the president makes decisions based on me and
my family?’”
That’s
both cynical and silly. If one out of ten people seeking
work can’t find any, it follows that the average person
has a friend, relative or neighbor amongst them. All she
or he has to do is look out the window or answer the phone
to be scared.
There
are now, more or less, 14,087,000 people unsuccessfully
seeking work in the country today. The unemployment rate
for African Americans came to 16.2 percent in June, the
same as for May. This is compared to 15.4 percent this time
last year, and 8.5 percent in June 2007. The highest jobless
category is African American men: 17 percent. The mid-summer
rate for Latinos is 11.6 percent, down from 11.9 percent
in May and up from 5.6 percent in June 2007. The rate for
black teenagers is holding steady at about 40 percent compared
to a little less than 25 percent for young people overall.
In the summer of 2007, teen unemployment was 16.3 percent.
The
employment-to-population (EPOP) ratio fell to 58.2 percent,
the low spot in December of 2009 and again in November in
2010. According to economist, Dean Baker, of the Center
for Economic and Policy Research, “The decline in EPOPs
hit most groups, but black women saw the sharpest falloff,
with their EPOP declining by 0.9 percentage points to 52.8
percent, another new low for the downturn. The EPOP for
black women is 7.8 percentage points below the pre-recession
peak in 2007. The EPOP for blacks overall edged down by
0.1 percentage points to 51.1 percent, also a new low for
the downturn.”
It
goes without saying that these latest jobless statistics
minimize the depth of the crisis. They don’t include the
men and women working part time who would rather have a
full time job, those entering the workforce looking for
their first job or those who have left the active workforce
in frustration.
“The
United
States is in the grips of its gravest
jobs crisis since Franklin D. Roosevelt was in the White
House. Lose your job, and it will take roughly nine months
to find a new one,” Catherine Rampell wrote in the New
York Times Sunday. “That
is off the charts. Many Americans have simply given up.”
It
should also go without saying that this situation should
be considered a national emergency. But you would never
think so listening to the big shot Democrats and Republicans
that appeared on the weekend talk shows and at campaign
rallies. Their talk was all about the deficit and the right
wing’s perversion of the Democratic process by holding the
Congress hostage and targeting President Obama for defeat
at any cost.
Treasury
Secretary Timothy Geithner did, however, warn us that it
will be quite a while before it will feel like the economy
is on the mend. For many of us “it’s going to feel very
hard, harder than anything they’ve experienced in their
lifetime now, for a long time to come,” he said on “Meet
the Press”.
Other
than that, most of the week’s commentary on the jobs picture
has not been on how serious the crisis is or what might
be done in response, but rather on how the job stats figure
into prospects for the President’s re-election.
Surely,
I am not the only one who is tired of hearing about the
outlook for the 2012 election. The politicians should keep
their grubby hands off Medicare, Medicaid and Social Security
because it’s the right thing to do - regardless of the Democrats’
polling prospects. Likewise, it’s obscene to fashion a response
to the worsening employment picture based upon the next
election - equally so for the empathy-challenged Senate
Republicans and the people in the big house on Pennsylvania Avenue.
The
Republicans played the jobs question for all it was worth
last year and they will play it again next year. In fact,
with the release of the July statistics they have taken
up the cry again. It’s not surprising. The rightwing in
Greece and elsewhere in Europe
have not shied away from sounding populist on the issue,
especially where the left has been so far unable to advance
a strong credible alternative argument against draconian
austerity drives. The White House would seem to have adopted
the Republican narrative when the President says he thinks
the budget “deal” they are cooking up in the nation’s capital
these days will lead to big business receiving “certainty”
about the federal finances, prompting them to begin hiring
people.
“There
has never been any evidence that the federal debt is primarily
responsible for the persistent joblessness that began with
the 2008 recession,” the New York Times said editorially
last week. “The numbers have remained high because of weak
consumer demand and stagnant wage growth, along with an
imbalance between jobs and job skills. Republicans have
long tried to link unemployment and debt so that they can
blame Mr. Obama for the poor economy, and build support
for their ideological goal of cutting spending.”
“The
president may have a nebulous approach to unemployment,
but he is hardly indifferent to it. His re-election hinges
on reducing it. It is hard to understand, though, why Mr.
Obama has adopted the language of his opponents in connecting
the economy to the debt,” the Times editors said.
When
it gets around to the subject, the Administration is mainly
pushing four ideas about how to deal with the jobs crisis:
enactment of pending foreign trade pacts of dubious merit,
creating jobs by repairing the nation’s infrastructure,
extending a payroll tax cut that presumably will lead to
people spending more on something other than increasing
medical care costs and gas prices, and making it easier
for entrepreneurs to get patents.
“To
his credit, he talked about the one step that would work
- investing money in rebuilding the country,” said the Times
last Sunday.
Frankly,
some of us are tired to hearing about it, thinking it’s
time to dust off that old picket line slogan: “Never mind
your promises, we want action.” For, as the editorial said,
“the debt-ceiling ideas he is now considering would make
that investment much less likely by pulling hundreds of
billions of dollars out of the economy at precisely the
moment when the spending is needed most.”
The
President once proposed spending $53 billion for high-speed
rail over six years, but then turned around and made a budget
deal with the Republicans that killed off such a prospect.
The White House keeps talking about an infrastructure bank;
we’ll be convinced when the vaults are filled and the cashier
windows open.
It’s
time to put a rest to the contention by Republican-inclined
pundits that the November 2010 Congressional election victories
of the GOP were a mandate for deficit reduction. “Obama
has let the Republicans dominate the narrative. They have
been brilliant in defining the narrative away from jobs,
which is what got they the big victory, back to spending,”
Norm Ornstein of the hardly liberal American Enterprise
Institute told the Financial Times last week. One
poll last week found that only 38 percent of the people
in the country approve of the way the Administration is
handling the jobs crisis.
On
“This Week” on ABC White House chief of staff, William M.
Daley predicted that the President will continue to promote
a big “deal” to move the deficit negotiations forward. “Everyone
agrees that a number around $4 trillion is the number that
will make a serious dent in our deficit,” he said. “He didn’t
come to this town to do little things. He came to do big
things.” Could be that the White House has some big thing
in mind to put people back to work - the sure way to rescue
the economy from the present quagmire - but there’s no evidence
that’s the case.
BlackCommentator.com
Editorial Board member Carl Bloice is a writer in
San Francisco, a member of the
National
Coordinating Committee of the Committees of Correspondence
for Democracy and Socialism and formerly worked for a healthcare union. Click
here
to contact Mr. Bloice.
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