Obama says he fears 'new normal': Big corporate profits, but few new jobs

[somone]

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/07/AR2010110705223.html

Obama says he fears economy could enter 'new normal' of low job growth
By Lori Montgomery

Without additional government action to spur hiring, President Obama said Sunday that he fears the U.S. economy could enter a "new normal" in which corporate profits are high but the number of new jobs is too low to reduce the nation's 9.6 percent unemployment rate to pre-recession levels.

"What is a danger is that we stay stuck in a new normal where unemployment rates stay high," he said in an interview aired Sunday night on CBS's "60 Minutes." "People who have jobs see their incomes go up. Businesses make big profits. But they've learned to do more with less. And so they don't hire. And as a consequence, we keep on seeing growth that is just too slow to bring back the 8 million jobs that were lost."

The sit-down interview, Obama's first since Republicans gave him what he called a "shellacking" in last week's congressional midterm elections, focused heavily on the fragile economy and its starring role in the reversal of Democrats' political fortunes. He lamented his inability to make more headway in creating jobs, conceding that "I do get discouraged."

"I thought the economy would have gotten better by now," he said. "One of the things I think you understand as president is you're held responsible for everything. But you don't always have control of everything."

Since he took office at the height of the worst economic downturn since the Great Depression, Obama has signed an economic stimulus package of historic proportions, overseen the bailout of the nation's financial industry and watched the Federal Reserve cut interest rates effectively to zero and move to purchase hundreds of billions of dollars in Treasury bonds to help stimulate activity. After all that, he said Sunday, there may be limits to what more government can do...

[601Liberal]

1. What are you gonna do, Mr. President?

Whatever you come up with, sell it to the public, stick with it and don't compromise.

[Poboy]

2. No shit Shirlock. -nt

[leftstreet]

3. (facepalm) "I thought the economy would have gotten better by now"

[emilyg]

7. Love it.

[TwilightGardener]

36. No credit for preventing total collapse and rescuing some industries.

Yep, just keep lobbing spitballs from the gallery, that's nice.

[Bluebear]

39. LOL whatever

[progressoid]

4. That sounds like something someone on the Professional Left would say.

[Initech]

5. And of course - thanks to the GOP victory, the tax cuts aren't gonna be repealed.

[RKP5637]

6. 21st century may well require a radical shift in the paradigm of what is

a sustainable economy/job/income level. Skewed distributions of wealth well might completely topple an economy, in a global economy funds well might shift rapidly out of the US.

None want to really do anything to stop the tax/cost advantage of off-shoring.

Just as a rough estimate, it makes absolutely no sense how jobs/incomes can be sustained here while off-shoring all types of jobs for lower labor. Eventually demand IMO will dry up within the US.

New solutions are required, not old school thought.

[Skittles]

8. LOLOL

yet the people he hired - that's what they caused!!!

[Poll_Blind]

9. This is turning into a four act play with one act behind us and a worryingly-long intermission. n/t

PB

[FrenchieCat]

10. I watched the interview,

and the sacs of shit Media whores don't seem to want to interpret it right.
They must want their tax cuts will badly.....

Of course, I'm sure folks here are gonna jump in for that extra kick in the President
pant thingie....makes everyone feel big and strong and right.

Then in 2012, with a media conglomorate continuing to shill for the GOP,
unlimited Corporate money for the GOP, and Net Neutrality DOA to the GOP house,
will have nothing but Republicans to scream at. Won't that be peachy? :bounce:

[Brickbat]

11. But...then...why did he work for it?

Hmmm...

[OHdem10]

12. Much of the Big Corporate profits are from their companies overseas.

[OlympicBrian]

13. Obama agrees with me, and here's why...

Representation of the Often-Untaxed Elite - The US Corporatocracy
(original 10/29, Dan S., Seattle)

"US corporatocracy" - the system of government that serves the interests of, and is essentially run by, corporations. It primarily seeks to further ties between government and business--where corporations, multi-national corporations, conglomerates, and private parties including political organizations and highly-paid corporate executives are the primary controls, and are the elite. Areas of control rely on direction and governance often tied to contrived (sometimes fearsome) mass-media visages of elements, ideas, and persons within the country. Within the corporatocracy, objective news reporting is hard to find. The system depends on highly-paid "pundits" for dissemination of major themes.
...
At the nucleus of the corporatocracy is a non-elected body, the US Chamber of Commerce. This powerful group, known mainly for its political attack ads, is extremely well-financed through mostly anonymous, sometimes foreign entities. It acts as a major focal point for corporations, with a distinct emphasis on the biggest. The Chamber is growing, becoming increasingly dominant in the corporate, media, political, election, legislative, and judicial spheres. It prefers foreign interests over US citizens, carrying an agenda aimed at offshoring US jobs--and tax breaks to corporations which do so. The Chamber also recently kicked off a campaign to change a law which prevents foreign corrupt practices.

Not surprisingly, in the corporatocracy, unemployment is high even during boom periods where corporate profits are rich and the stock market is high, because of a reliance on offshoring and offshore investment. The corporations always seek out what's known in economic terms as "absolute advantage," which in lay terms means "utter selfishness and disregard for the rest of the US." The US tax base is eroded as a consequence (those that profit the most aren't taxed), and the federal debt climbs quickly. Congress acts in lockstep with the Chamber...the President has limited powers...and the judicial branch has been swayed to serve the Chamber. So the Chamber has a lock-down on the three branches of government. In summary--the big money, influence, and decisions flow through the Chamber and its biggest corporate constituents, while the three branches of US government are merely tools.

(more, full thread of interesting stuff)
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9425839

[OlympicBrian]

16. By the way...

Corporate profits will only hold up so long, and inflation is catching up with all this stuff the Fed is doing.

[Starry Messenger]

14. He fears it?

I'm going to stop there before I say something I regret.

[Poboy]

15. He 'fears' the new normal=He will do NOTHING about it! -nt

[Starry Messenger]

17. I have to say, I've been waiting for a "uniquely American" type statement from Obama.

Remember when Bush said that to the woman with three jobs struggling to stay afloat? This didn't have to be the "new normal". For the amount of the bailouts, millions of people could have been put on a straight Federal salary with a government jobs program.

[bleever]

18. That's a Bingo.

Bush lauded the economy where a great American would work three jobs to try to get by. ("How much do ya sleep?" or some such was his folksy reply).

Obama comes right out and says that it's wrong.

[Starry Messenger]

21. Where did he say it was wrong? Did I miss something?

He just called it "the new normal". Usually when people call something normal, they are signaling acceptance.

[Bluebear]

22. Yes indeed.

[Starry Messenger]

24. We are so fucked.

Anyone speak French?

[Poboy]

29. That's it exactly! -nt

[Bluebear]

19. This from the man who said this week that India "creates" jobs, it doesn't take them

My god.

[Catherina]

20. You beat me to it, How disingenious.

disingenious - Expertly produced ideas or plans, that are profoundly self-defeating. (Please do not confuse this with disingenuous.)

Alan Greenspan's seemingly brilliant attempts to prop up the market were disingenious at best.

[Skittles]

23. outsourcing is GOOD for us, PT

it's not economic treason.....it's, well, it's NOT POACHING!!! :rofl:

[chill_wind]

25. After all that, he said Sunday, there may be limits to what more government can do...

Which is precisely what his admin (Gibbs)said a couple months ago pre-midterms, when asked if there would be any more stimulus or other solutions.

Q Okay, but the question I asked was, do you think — does the President think that there should be a bolder move taken beyond a $30 billion small business lending initiative –

MR. GIBBS: Well, again, I think –

Q — and there aren’t the votes for it, or he just didn’t think there is such a thing?

MR. GIBBS: I think, Jake, I think the President mentioned several ideas today that he believes are important to continue that recovery that we will pursue. I think these will be areas and initiatives that are targeted towards spurring recovery and creating an environment for hiring, not some –

Q But does that mean he believes that that is the right approach, or he believes that it’s the only politically possible approach?

MR. GIBBS: Well, look, I don’t think there’s any — I think there’s no doubt that there are — there’s only so much that can be done.

Q Not having to do with politics?

MR. GIBBS: Not having to do with politics. (my emphasis)

http://emptywheel.firedoglake.com/2010/08/31/nothing-to-be-done-but-blame-republicans/

Yes, we are in continuing deep shit. They are lost.

[Poboy]

26. Throw his hands up and walk away. Nice. -nt

[chill_wind]

38. Letting US CEO's scour India looking for more FTA and outsourcing

is about all he's got, they've decided. They're out of ideas. That was extremely clear before the mid-terms.

"As we look to India today, the United States sees an opportunity to sell our exports in one of the fastest-growing markets in the world," Mr. Obama told a gathering of political leaders and Indian and American executives. "For America, this is a jobs strategy."


India has long sought a loosening of the export restrictions more for political reasons than economic ones -- the country did not want to be viewed as a rogue state -- and the move is part of a bid to strengthen relations with India.

But the trip, Mr. Obama's first extended foray overseas this year, is also an attempt to ease tensions with America's chief executives, many of whom spent the recent campaign accusing the White House of being antibusiness -- and pouring money into the coffers of Republican candidates and groups that aimed to defeat the Democrats. More than 200 American executives timed a business conference to coincide with Mr. Obama's arrival in Mumbai -- and the president reciprocated by showering them with attention.

http://www.ndtv.com/article/india/obama-eases-rules-on-select-technology-exports-64760?cp&cp

Guys like this have just been waiting for the newly lifted restrictions:

Lockheed Martin Looks to Outsource Satellite Launches to India
Postedby Doug Messier
on October 17, 2010, at 1:03 pm

US may outsource lightweight satellite launches to India

http://www.parabolicarc.com/2010/10/17/lockheed-martin-outsource-satellite-launches-india/

[Le Taz Hot]

27. And I'm supposed to blindly follow this guy. n/t

[seabeyond]

28. balance that free trade a bet, regulations and incentive for staying in u.s.

we dont have to just "accept" this as a new norm

[Enrique]

30. then tax those profits and expand unemployment insurance

if that's the new normal then we have to take care of the people that are hurt by it.

If the companies don't like it, then they can start hiring people so the government doesn't need to support them.

[laughingliberal]

31. Certainly is the new normal if nothing's done. He wouldn't be surprised if he'd been listening.

Tinkering around the edges of supply side economics is not going to ever turn anything around in a significant way. To paraphrase St. Ron, supply side is not the solution. Supply side is the problem. Economic recoveries are now a situation where the top recovers and the rest stagnate or lose ground. Bush touted his 'recovery' for years but all the benefit of that recovery went to corporate profits and very minimal benefits of it went to labor. It's the same with the 'Obama' recovery. Growth in GDP no longer spells improvement in the lives of the vast majority of people.

Not sure how he thought things would be better, by now, unless he is a true believer in the principles the supply siders in his administration were clinging to. Did it never occur to him that there was a reason most reputable economists were predicting the failure of the inadequate measures the administration was signing on to? Is it even in the realm of possibilities he believed it when he said the stimulus they passed would check unemployment at 8%. I don't know anyone who thought that was true. It's one thing to have to settle for weak measures in order to pass something. It's quite another to think that weak measure is going to highly successful.

[fascisthunter]

32. Keep up the Great Work...

:crazy:

gee, I wonder why....

[xchrom]

33. Sigh. Nt

[GeorgeGist]

34. On 2nd thought ...

nevermind.

[TheKentuckian]

35. This guy is done and has no intention of doing anything other than being done.

[ipaint]

37. He fears...

them's fightin' words. :sarcasm: