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
Real Athens
October 27th, 2011
10:44 am
Billy:
The Interstate Highway System created temp jobs? Ha! That’s rich. If you can’t figure that one out for yourself, no sense in engaging you any further. SOme folks should never hit send.
“The nation as a whole, which has reaped a gain of at least $6 in benefit for each $1 spent in construction. And that’s just the beginning — there are additional benefits such as higher employment rates and greater economic opportunity that are simply beyond quantification.”
http://www.publicpurpose.com/freeway1.htm
Billy Bane
October 27th, 2011
10:44 am
“You could have titled your blog “Facts about the Obama Presidency that you will never hear on Fox News”.”
Fox News envy.
HDB
October 27th, 2011
10:44 am
UGA 1999
October 27th, 2011
10:41 am
Nope…..I LIKE creating longevity….and I also like when opportunity presents itself!!
Welcome to the Occupation
October 27th, 2011
10:44 am
I see some of our baneful usual suspects are out in force this morning.
So, Kyle, as usual your column is just a recitation of petty gripes about tactics and such. I mean, assuming John McCain were president now and doing the same sorts of things, do you really expect us to believe you would be just as tough on him? And blaming Obama for direct appeals to public opinion in the face of an absolute partisan blockade in the legislative area? Seriously? Is that supposed to be a serious gripe? Wow. That’s some real cojones on your part to even suggest such a complaint.
And kind of “short change”-ish, too, if you ask me.
TruthBe
October 27th, 2011
10:46 am
Obama is a shameless snake oil salesmen. HDB you and the rest of the kool-aid juice drinkers need to read the entire bill that Obama and the progressive democrats wrote. If you would have than you would know that in the student loan bill Obama gives the right to the government to harrass people on their cell phones for debt. But only the government. This president is a big government control freak. Who pays for this bill. America is broke. But Hillary Clinton and Obama just gave Libya 50 million taxpayers dollars for the muslim brotherhood rebels in Libya. Why? And wouldn’t this money be better used here in America. What about the 3 billion taxpayers dollars given to Hamas, PLO, Muslim Brotherhood, Hezbullah by Hillary and Obama thru the State Department since Obama been in office? How come you liberal democrats don’t speak out about that?ANYBOBY BUT OBAMA in 2012.
UGA 1999
October 27th, 2011
10:46 am
Retired….how about “Facts about Obama that are NOT facts!” that sounds much better and is more accurate.
UGA 1999
October 27th, 2011
10:47 am
HDB….so you like when opporunity “presents itself” that is what I thought. So you are saying that you like to sit back and wait for something to fall into your lap versus being ambitious and going out and making your life better…….That is what I thought.
JDW
October 27th, 2011
10:48 am
@Billy…”Where did you earn yours?”
Not that it’s any of your business but I have two and as for the remainder of your inane drivel…
UGA 1999
October 27th, 2011
10:49 am
“SOVIET FLAG FLIES AT OCCUPY WALL STREET IN PHILADELPHIA” Nice very nice!
The Great and Powerful Community Organizer
October 27th, 2011
10:49 am
I am so proud of my Democratic base. Next time we WILL levitate the Georgia-Pacific building!! Yes we can!
UGA 1999
October 27th, 2011
10:49 am
JDW….you have two what? Brain cells?
Billy Bane
October 27th, 2011
10:51 am
“Not that it’s any of your business but I have two and as for the remainder of your inane drivel”
Liar.
Billy Bane
October 27th, 2011
10:52 am
Welcome to the Occupation
Were you able to levitate the GP building with your massive cranium?
retired early
October 27th, 2011
10:52 am
UGA
So you are saying Obama did not give the order to kill Bin laden ?? Would you even give him credit for being elected president…or that he is alive…married with 2 kids…anything???!!!
UGA 1999
October 27th, 2011
10:53 am
FUTURE OBAMA SUPPORTER!! HAHAH now who is racist?
http://www.liveleak.com/view?i=a69_1319665650
UGA 1999
October 27th, 2011
10:57 am
Retired….Oh I will give him plenty of credit…..debt, job loss, uncertainty in the market place, OWS, more instability in the middle east…..would you like to keep going?
Real Athens
October 27th, 2011
10:58 am
UGA 1999 @ 10:53: You’re the answer to your own question.
Billy Bane
October 27th, 2011
10:58 am
retired early
It’s great that Obama got Bin Laden but I will never vote for someone just because they gave the order to kill said person. Left wingers like you were outraged when Bush got Saddam.
HDB
October 27th, 2011
10:59 am
UGA 1999
October 27th, 2011
10:47 am
When opportunity presents itself doesn’t mean that I’m WAITING…but I’M CREATING the opportunity!! “Making myself better” includes education, work experience, work ethic….and IF the opportunity presents itself in another environment, then preparing myself to learn more about that environment and how to smoothly transition myself into that environment!! A BS and TWO Masters degrees means that I took it upon myself to make myself into a viable candidate for whatever opportunity I seek……
UGA 1999
October 27th, 2011
11:00 am
Real…..hahaha nice ignorant post! hahaha
retired early
October 27th, 2011
11:00 am
UGA
…..but what about killing Bin Laden….you have not answered that.
HDB
October 27th, 2011
11:02 am
UGA 1999
October 27th, 2011
10:57 am
“Retired….Oh I will give him plenty of credit…..debt, job loss, uncertainty in the market place, OWS, more instability in the middle east…..would you like to keep going?”
You know all these are considered BUSHISMS, don’t you….debt, job loss, uncertainty, instability?? OWS and the Tea Party (according to them) were created as a RESULT of BUSHISMS!!!
UGA 1999
October 27th, 2011
11:02 am
HDB….a BS and two Masters? Impressive, unfortunately those degrees alone will not “create and opportunity”. It is your drive, motivation and ambition that will get you more.
I only have one degree but work a full time job and own two businesses. NOT only because of my education but my work ethic, values and drive.
UGA 1999
October 27th, 2011
11:03 am
HDB….WOW Bush is president now?
retired early
October 27th, 2011
11:03 am
Billy
“left wingers like….Saddam”. So, that “kill”… was worth 4500 American lives and 1 trillion dollars. If you answered yes…you are truly insane.
TruthBe
October 27th, 2011
11:04 am
HDB, Obama is far worst than Bush on the economy and that was bad enough.
UGA 1999
October 27th, 2011
11:05 am
retired….what about it?
The Great and Powerful Community Organizer
October 27th, 2011
11:05 am
I love how my little monions still blame Bush for every woe. Geez, they’re clueless. They’ll vote for me no matter how I screw things up!
UGA 1999
October 27th, 2011
11:06 am
retired…insane really??? Is that why Clinton tried to kill him twice but failed? BTW….Iraq right now is a gleaming success in the middle east. And no it has nothing to do with anything Obama did.
However Obama will be responsible for the aftermath in Libya…..Sharia Law….nice.
retired early
October 27th, 2011
11:07 am
UGA
Do you agree that Obama is responsible for killing Bin Laden ????
HDB
October 27th, 2011
11:08 am
UGA 1999
October 27th, 2011
11:02 am
HDB….a BS and two Masters? Impressive, unfortunately those degrees alone will not “create and opportunity”. It is your drive, motivation and ambition that will get you more.
No disagreement there…..how do you think I got to where I’ve been?? Just because I was laid off didn’t mean I sat idly by!! Persistent job searches, doing what I had to do to survive…and the flexibility to move got me back to work…but it took two years for it to happen!! When I had to come back to care for my mother who was suffering fron Alzheimers’, it took another two years to find work…but I did!! The atmosphere was more condusive for my successes under Democrats rather than Republicans…..
Just my experience……..
UGA 1999
October 27th, 2011
11:10 am
Retired….I think Obama did make the decision to pull the trigger. However there are MANY more people that are more responsible for taking him out. Ever hear of Seal Team 6?
Real Athens
October 27th, 2011
11:11 am
UGA 1999: “Iraq … gleaming success?? C’mon now, step away from the computer and go back to coloring. You’re in over your head.
Do you know what a “monion” is? Just wondering.
UGA 1999
October 27th, 2011
11:13 am
HDB….honestly dude, I appreciate your comments, (honestly) thank you.
I wish you the best of luck, it seems that you are on the right path and I wish you well. I can tell you as a business owner that Obama brings WAY too much instability into the job market. Many companies (like mine) are not willing to hire new employees if we do not need to. We are also saving our profits for a rainy day. Until something dramatically changes in DC this is not going to change the jobless numbers or the unwillingness for corporations to hire people. Sorry dude that is just a fact.
retired early
October 27th, 2011
11:14 am
UGA
The only “successful” Democracies in the Middle East are those created by the citizens themselves.
Remember this…Iran is a Democracy. Iraq will be another Iran. That is why we have no business “nation building” in the Middle East.
UGA 1999
October 27th, 2011
11:14 am
Real….care to compare the political state and economic state of Iraq versus any other middle east country now? Have you spoken to any soldiers that are currently or recently been in Iraq? My nephew just got back.
DannyX
October 27th, 2011
11:15 am
I really feel your pain. I don’t blame you guys a bit for pretending that Bush W never existed. We always want to remember the good times and lets face it, Bush pretty much destroyed the economy and his foreign policy was a mess. Nobody wants to relive the horrors of the Bush years. We all need to start healing.
Bless your hearts.
JDW
October 27th, 2011
11:15 am
@Billy…”Liar”
My aren’t you witty, insightful and articulate.
UGA 1999
October 27th, 2011
11:17 am
Retired….really when did Iraq get ayatollahs?
UGA 1999
October 27th, 2011
11:18 am
DannyX…..wow i hope obama goes into the debates with a blame bush attitude…..please please please!
HDB
October 27th, 2011
11:18 am
TruthBe
October 27th, 2011
11:04 am
Depends on your circumstance and environment…..it was EASIER for me to find employment under the current Administration rather than the previous one!! Many don’t see what changes Obama is attempting to make to IMPROVE the business environment! Health Care costs affect everyone…and the beginning of reforms would improve businesses’ bottom line! I admit that the INITIAL iteration may not be the best idea….but what software performs well in its initial iteration! HCR will need modification….but at least, it’s begun!!
Environmental regulation should be something that business should appreciate…..but we all know that business WILL NOT POLICE ITSELF!! It takes the enforcement arm of the government to create the proper environment….not just for business…but also for the CONSUMER!! Out of these regulations can come the innovations that American business was once noted for!!!
Tax policy NEEDS a revamping….but not in such a way to weaken the safety net nor creating a hostile atmosphere for business!!
Change can be either incremental….or voluminous….whatever is required to get things on the correct path for ALL in this nation!!!
UGA 1999
October 27th, 2011
11:18 am
HDB…i apprecaite your comments but you are WAY off in your judgements.
Billy Bane
October 27th, 2011
11:19 am
” was worth 4500 American lives and 1 trillion dollars. If you answered yes…you are truly insane.”
A lot less than Vietnam.
Billy Bane
October 27th, 2011
11:19 am
“My aren’t you witty, insightful and articulate.”
Yes.
Billy Bane
October 27th, 2011
11:20 am
“Nobody wants to relive the horrors of the Bush years. ”
Things were better under Bush.
Scooter
October 27th, 2011
11:20 am
“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!”
Typed like a presumptive and petulant little child.
Billy Bane
October 27th, 2011
11:20 am
“HDB….a BS and two Masters?”
A master at BS.
getalife
October 27th, 2011
11:24 am
Economy grew 2.5 %.
The good news on our economy is horrible news for the gop obstruction for this election.
The gop deserve to lose for their unAmemerican and unpatriotic actions.
HDB
October 27th, 2011
11:25 am
UGA 1999
October 27th, 2011
11:13 am
Hey..thanks!! We both want the nation to do well….and we know that there are varying methodologies we all see to accomplish that goal!!
The problem I see is that the application of circular logic is primary here: employers aren’t hiring because there’s no demand…..and there’s no demand because employers aren’t hiring!! Many changes I’m envisioning ARE SORELY NEEDED….but too many are resistant to a paradigm shift!! The most constant thing in life is CHANGE!! As a nation, we need to rediscover the flexibility we once had that made us dynamic! We can’t resort to xenophobia as we did in the 50s…..
Lil' Barry Bailout (Revised Downward)
October 27th, 2011
11:25 am
Hey libtards…Exxon’s profit soared 41% so I guess it isn’t all good news today, eh?