Obama’s small-change 2012 campaign tour
Barack Obama was back on the road this week. The tour bus was gone, but otherwise there was barely a hint he was doing anything other than taking another taxpayer-funded campaign swing through the states that will be key to the 2012 election.
You can tell it by his choice of destinations. Since Sept. 1, Obama has visited five of the six states where his 2008 margin of victory was narrowest: North Carolina (twice), Florida, Ohio (twice), Virginia (twice) and Colorado (twice). Add to that list Missouri, the site of his closest loss to John McCain, and potential battleground states Nevada, Michigan (twice), New Jersey and Pennsylvania.
But mostly you can tell it by his messaging. On this week’s trip out west, Obama broke out his latest three-word slogan: “We can’t wait” — for members of Congress to take the initiative. But, as Politifact recently reported, members of Congress have introduced dozens of bills related to jobs and the economy this year. It’s more like “He can’t wait” — for his re-election prospects to brighten.
(In neither case, one assumes, does the White House consider “Yes, we can!” an appropriate response.)
Politics aside, the substance of the “We can’t wait” campaign is what’s disturbing. And that’s not only because the president is seeking to bypass the legislative process via executive orders to change existing policies originally approved by Congress. It’s also because Obama’s two latest programs repeat the mistake of spending billions to tweak the economy around the edges.
In Nevada, home of the nation’s highest foreclosure rate, Obama announced changes to a program to help homeowners who owe more on their mortgages than their homes are worth. Obama wants to allow these homeowners to refinance their mortgages at today’s low rates, regardless of the value of their homes. The idea is that they will have lower monthly payments, and they will direct the savings elsewhere in the economy.
It’s stimulus by another name, with the same problems. First, it assumes all of the monthly difference will be spent, not saved. History suggests that won’t happen.
Second, one man’s liability is another man’s asset: the lender’s. So, the plan assumes the money added to the economy by homeowners won’t simply be subtracted from the economy by lenders.
At least, it would make that second assumption if private lenders were involved. The chief lender here is the taxpayer, via Fannie Mae and Freddie Mac: A loan must be held or backed by them to qualify. Any banks that hold affected mortgage notes may be inclined to reduce their lending. Otherwise, it’s added to Uncle Sam’s tab.
But fear not: The program is limited to homeowners who are current on their payments. While this requirement reduces taxpayers’ exposure, it also restricts the number of people who could apply — to as few as 800,000, for a total difference of $2.4 billion per year, according to an estimate by financial expert Peter J. Wallison.
So, it’s another couple of billion bucks piled onto the debt, without adding much bang to the economy.
The other change sought by Obama concerns student loans. The total school-related debt for U.S. college students and graduates is about to eclipse $1 trillion, or more than Americans owe on our credit cards. In Colorado Wednesday, Obama said he would reduce the minimum payments borrowers must make on their federal student loans, to 10 percent of annual earnings from 15 percent.
Again, this may make a difference for some people struggling to make ends meet. But it will cost them more, for longer, without significantly boosting the economy. And it won’t address the real reason student debt has grown so large: skyrocketing tuition and fees.
I have to hand it to Obama, however. Homeowners who have kept up their mortgage payments strike me as the kind of people likely to vote. And Obama’s re-election chances depend in no small part on keeping young people on his side.
But what would really help them, and the rest of us, is an economy that’s growing and producing more jobs and higher incomes. Obama’s latest electioneering won’t stimulate that.
– By Kyle Wingfield
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294 comments Add your comment
Billy Bane
October 27th, 2011
9:44 am
” And Obama’s re-election chances depend in no small part on keeping young people on his side.”
I wouldn’t count on that strategy to win in 2012. He’s lost most of independent voters. Michigan, Penn, Ohio, Florida etc are all red states now.
Guess 2010 didn’t work out so well for Obama.
ragnar danneskjold
October 27th, 2011
9:45 am
Good morning all. Chauncey has a slogan we can all get behind in “we cannot wait.” Paired with his previous slogan, “Winning the Future” – which explained all of his policies with its acronym – we now have reason to vote and can only wish the election were tomorrow.
ragnar danneskjold
October 27th, 2011
9:53 am
Dear Kyle, I am loathe to add a sour note, but we need to address the two Georgia RINOs in the Senate. Last week, on an approximately 60-38 vote, the Senate actually did something, it raised the taxpayer guarantees on FNMA/FHLMC homes from $700k to $750k, as if those guarantees had nothing to do with the previous bubble. Georgia has the distinction of being the only state that had two Republicans voting for the new taxpayer burden. Inexcusable, time to elect a couple of conservatives.
Scooter
October 27th, 2011
9:53 am
The Obama’s plan will help me to a degree. It will allow me to refinance my residence into a new amortization schedule that will reduce my payments. However, it will put me back at the beginning of that schedule where I’m paying more interest and less principal. Therefore, if I take advantage of The Obama’s program I will maintain my current payments to reduce my principal and bring myself back into positive equity. It will essentially do very little for financially savvy people who don’t rely on the “help” of community organizers to stay in dept and live hand-to-mouth.
Scooter
October 27th, 2011
9:54 am
debt, not dept.
HDB
October 27th, 2011
9:55 am
Billy Bane
October 27th, 2011
9:41 am
Don’t need to smoke anything….the facts speak for themselves! Two wars paid with borrowed money, massive unemployment, tax cuts for the rich…..all done under Republican CONtrol! Start with 1981 and progress to current time……it’s what I’ve EXPERIENCED….not read about!!
Billy Bane
October 27th, 2011
9:56 am
” time to elect a couple of conservatives.”
We had our chance to put Handel in but instead put Deal in.
Billy Bane
October 27th, 2011
9:57 am
“Two wars paid with borrowed money, massive unemployment, tax cuts for the rich…..all done under Republican ”
Two wars were voted for by the current administration. Hillary and Biden.
Unemployment is higher under Obama than it ever was under Bush.
Your “facts” wreak of lies, HDB.
Real Athens
October 27th, 2011
9:57 am
Where is Findland?
Scooter
October 27th, 2011
9:58 am
Oh yeah! It’s odd The Obama now says “we can’t wait”, because he sure thought we could wait while he shoved health care “reform” down America’s throat. He seems to be a campaigner, not a leader.
Billy Bane
October 27th, 2011
9:59 am
“tax cuts for the rich”
Obama extended those cuts, HDB.
Stop lying.
Lil' Barry Bailout (Revised Downward)
October 27th, 2011
10:01 am
Findland is where you will “find” Obozo is stimulating manufacturing jobs with his giveaway of $500 million in taxpayer money to build an electric sports car for his fatcat buddies.
Lil' Barry Bailout (Revised Downward)
October 27th, 2011
10:04 am
Haven’t heard much about Gitmo lately. Is it still open for business?
JDW
October 27th, 2011
10:08 am
Government can create jobs by taking action to impact two things. First increasing demand is what really drives job growth in existing businesses. Things that increase demand have a positive impact. Second, despite all the gnashing of teeth over small business driving jobs the type of business that really drives new jobs is new businesses. Anything government can do to foster the creation of new businesses is a positive.
While the Dems have not done a good job of targeting these activities they have at least marginally impacted them by saving public service jobs (when these people keep their jobs they spend money increasing demand), minimizing taxes for people that spend the money (again not particularly effective but it does have some impact BTW the student loan bit falls in this category), keeping interest rates low to make dollars accessible, trying to drive infrastructure spending and trying to generate some funding for emerging industries such as solar.
Frankly the Repugs have offered very little that would actually make a positive impact. Tax cuts for the rich most likely has a detrimental effect, reducing regulation really has no impact on jobs—maybe profits to some degree but as we saw in the financial meltdown this can have negative impacts as well. Other Republican led actions such as scolding China on currency values—what a joke, creating uncertainty by making a stink over raising the debt limit, raising the filibuster to onerous levels, dramatically increasing deficit spending starting in 2000 and then refusing to consider rational solutions to the problem all very negatively impact consumer confidence and thus reduce demand.
Seems to me the Dems aren’t having a big enough impact and most of the Repugnican Universe is a big wet blanket that is doing more harm than good.
Billy Bane
October 27th, 2011
10:09 am
“Seems to me the Dems aren’t having a big enough impact and most of the Repugnican Universe is a big wet blanket that is doing more harm than good.”
Did you learn that at “Harvard?”
“Government can create jobs ”
No it can’t.
Real Athens
October 27th, 2011
10:10 am
Who are the fatcats who drive electric cars? Do they live in Findland? Isn’t Helsinki in Finland?
Billy Bane
October 27th, 2011
10:10 am
“Other Republican led actions such as scolding China”
Obama’s pal Emmelt sent TONS of jobs to China. Don’t hear you crying about that, cupcake.
Pete Moss
October 27th, 2011
10:11 am
No surprise here:
Blog post says GOP has sponsored “zero” job creation bills
DailyKooks avoid reality.
Real Athens
October 27th, 2011
10:12 am
Billy:
The Interstate Highway System didn’t create any jobs?
ragnar danneskjold
October 27th, 2011
10:14 am
Der Billy @ 9:56, good morning, I think that when I voted for Ms. Handel she was running for governator. Did not realize she ran for senate also.
the red herring
October 27th, 2011
10:17 am
it should be criminal for him (or any other sitting president) to use taxpayer money to campaign. especially so with the economy and the debt the way it is. like it or not the majority of the debt has been added since he became president and each time his predictions of how much our situation would improve if we added more debt have failed to materialize. this dictator and his czars need to be run out of washington asap. to use czars and failure to enforce our laws with a corrupt DOJ tells us this administration is nothing but trouble and the sooner we get them out the better off the country will be. obama doesn’t have the authority to do much of what he has done already and time will prove him to be the only president worse than carter (especially from doing things unconstitutionally). he is an excellent campaigner but is a terrible president. people that voted for him last time should go back and look at his record and remember what was warned about him prior to his being elected–”watch what he actually does not what he says he will do”. It has been mostly bad for this country—socialist policies will not work to create jobs and business in this country (other than government jobs and those are unsustainable when there isn’t enough tax revenue to pay for them– which we already know is the case at hand).
DannyX
October 27th, 2011
10:18 am
Stock market soaring again today! Over 12,000!
GDP doubled!
Oct unemployment rate will be under 9%!!
Small change???? Hardly.
Lil' Barry Bailout (Revised Downward)
October 27th, 2011
10:19 am
Billy, come on now–dontcha know the USSR created a job for everyone?
Tell the Truth and Shame the Devil
October 27th, 2011
10:20 am
Obama use your executive orders to change existing policies because we can’t wait on the selfish, self serving, rich, don’t care GOP!!
Republican supporters you are being BAMBOOZLED by your own party of selfish a**holes.
JDW
October 27th, 2011
10:25 am
@Billy…”Did you learn that at “Harvard?””
Am I talking over your reading level? There are remedial courses you can take for that.
Tell the Truth and Shame the Devil
October 27th, 2011
10:25 am
@Lil’ Barry Bailout (Revised Downward) October 27th, 2011 10:04 am
No one gives a sh*t about Gitmo! WHERE ARE THE JOBS? You are being BAMBOOZLED by the Republicans.
I bet you a million dollars that your party is GOING TO PAY IN 2012 FOR WHAT THEY ARE DOING.
Billy Bane
October 27th, 2011
10:26 am
“The Interstate Highway System didn’t create any jobs?”
Temp jobs.
Billy Bane
October 27th, 2011
10:26 am
ragnar danneskjold
I meant to type governor.
Billy Bane
October 27th, 2011
10:27 am
“Am I talking over your reading level? There are remedial courses you can take for that.”
No, it’s just funny to read comments from people who think they’re smarter than other people. And no, I already have a degree, cupcake.
Where did you earn yours?
Billy Bane
October 27th, 2011
10:28 am
“I bet you a million dollars”
So you’ll be paying in Monopoly money?
Billy Bane
October 27th, 2011
10:29 am
“Stock market soaring again today! Over 12,000!
GDP doubled!
Oct unemployment rate will be under 9%!!”
HAHAHAHAHAAHAH!!!!!!!
Tell the Truth and Shame the Devil
October 27th, 2011
10:29 am
@Scooter October 27th, 2011 9:58 am
You don’t want to talk about being a leader do you?
Bush lead us into this mess and two wars. Where were you? You were not on a blog doggin him were you?
Lead on that buddy!
HDB
October 27th, 2011
10:29 am
Billy Bane
October 27th, 2011
9:57 am
Ask those who were laid off because of 9/11 and couldn’t find work for up to two and three years……(I know…I was ONE of them(when I was working for UNITED AIRLINES))….
Ask those who got their unemployment insurance EXTENDED under a Democratic Administration by the extension of those tax cuts (which Republicans would NOT have done unless they got those tax cuts to remain!)……
Ask those who FOUND employment under the Democratic Administration when they COULDN’T under the Republican…(I was ONE of them!)….
Not lying…..just what I EXPERIENCED!! You need to look at OTHER sides of the equation, not just the party line……..
UGA 1999
October 27th, 2011
10:30 am
Isnt it great that we all get to pay for his national tour?
UGA 1999
October 27th, 2011
10:30 am
HDB…sounds like you should have been a better employee.
retired early
October 27th, 2011
10:30 am
It’s clear when you read the entire article that one man’s “job bill” is another man’s “tax cut”. It is also crystal clear, that the “trickle down” economic theory is totally bogus. Since 1979, the top 1% of earners income has increased at 275%, while the bottom income earners by 18%. Reagan became president in 1980 and introduced America to the “trickle down”…cut taxes for the rich to “create jobs”.
The sad truth is after 30 years of being deceived by this economic policy…the current GOP continues to preach this madness, and worse still…you voters still don’t “get it”. You blindly follow a party that is your own worst enemy.
Now, Kyle here, is trying to “glean” anything he can to support this “party of the rich” AKA the GOP.
Kyle, why not talk about the huge disparity in income growth just released in the national media yesterday…oh….I get it….that would be an admission that the “one trick pony” cut taxes for the rich as a cure all for our economic woes as preached by your precious GOP…is nothing but BS.
Tell the Truth and Shame the Devil
October 27th, 2011
10:31 am
@Billy Bane October 27th, 2011 10:28 am
It don’t matter because I will never have to pay up.
Billy Bane
October 27th, 2011
10:31 am
HDB
Stop lying.
Billy Bane
October 27th, 2011
10:31 am
“It don’t matter because I will never have to pay up.”
That’s because you don’t have a million dollars, liar. Did you and your loser friends levitate the GP building?
UGA 1999
October 27th, 2011
10:35 am
Billy….hahah great! I saw that too!
The Great and Powerful Community Organizer
October 27th, 2011
10:36 am
We can’t wait!!! The First Stimulus BLEW $800 Billion!! Now, let’s BLOW another $450 Billion!!
redneckbluedog
October 27th, 2011
10:38 am
I would like to take this opportunity to thank President and Commander-in-Chief Barack Hussein Obama for saving the United States economy after George W. Bush, Dick Cheney, John Boehner, Eric Cantor, Mitch McConnell, Dick Armey, and Tom DeLay almost drove it to total collapse in 2008……
Furthermore, I would like to thank the President and Joe Biden and the House and Senate Democrats for standing strong against the “Tea Party” Republicans in the United States House of Representatives earlier this year when they again tried to dismantle the United States’ economy by sending it into default…….
Furthermore, I would like to thank the President and Commander-in-Chief and Secretary of State Hillary Rodham Clinton for keeping the United States safe during the “Arab spring”….They have presided over the deaths of America’s worst enemies….Osama bin Laden, Anwar al-Awlaki, and Mommar Quaddafi……
I am so proud of the 2.5% economic growth in the 3rd quarter of 2011 and the 200 point jump in the NYSE this morning….KEEP UP THE GOOD WORK GUYS…..DO NOT LET CONSERVATIVES WRECK THE ECONOMY AGAIN AND PUT OUR TROOPS IN DANGER…..!!!!!!!!!!
The Great and Powerful Community Organizer
October 27th, 2011
10:40 am
“..Government can create jobs…”
Really? Exactly how does Government create a job? Please be specific. Where does the money come from? How much does each job cost? How long does the job last?
HDB
October 27th, 2011
10:40 am
UGA 1999
October 27th, 2011
10:30 am
Nope…..seniority was the issue!! Had only been there a year!! Couldn’t argue that!! Layoffs were done by the book!!
Billy Bane
October 27th, 2011
10:31 am
Don’t have to lie…..everyone’s experience differs….and is no less true!! I can see the statistics….but also can see the variations!! One person’s experiences can NOT be discounted just because they are a statistical variation! That variation ALSO is based on facts!!
s
UGA 1999
October 27th, 2011
10:41 am
Redneck……hahahahahahahahaahahah!
UGA 1999
October 27th, 2011
10:41 am
HDB….are you a job jumper?
Billy Bane
October 27th, 2011
10:43 am
“Don’t have to lie”
But you did.
retired early
October 27th, 2011
10:43 am
Redneckbluedog
HEAR HEAR !!!!
You could have titled your blog “Facts about the Obama Presidency that you will never hear on Fox News”.
Billy Bane
October 27th, 2011
10:43 am
redneckbluedog, are you on acid?
wtf?
October 27th, 2011
10:44 am
redneckbluedog
October 27th, 2011
10:38 am
Hilarious!!! No hope for you.