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
UGA 1999
October 27th, 2011
11:26 am
Getalife….the economy grew 2.5%….prove it. And this after how many quarters of continuous losses???? We are still way in the red.
DW
October 27th, 2011
11:28 am
I actually agree with most of what Kyle said
UGA 1999
October 27th, 2011
11:29 am
HDB….I agree with you on most of your points in your last statement. You are right that most companies will hire more when their demand increases. However this is not the case in most situations. As a business owner, if I can increase my demand without needing to hire more people it makes my business more profitable.
The uncertainty that Obama is throwing into our economy is making most businesses scared, especially small business.
HDB
October 27th, 2011
11:29 am
Billy Bane
October 27th, 2011
11:20 am
Just cause you’re myopic……..
UGA 1999
October 27th, 2011
11:18 am
Everyone’s vantage point is different!! I know that some changes ARE needed to improve the American environment….and we can agree to disagree as to the path that’s required to make such improvements….
You see things one way…I, another; the path lies somewhere in the middle!!
getalife
October 27th, 2011
11:29 am
2.5 % growth means gop obstruction for this election failed.
Horrible news for the gop means great news for our country.
You cons are pathetic Americans.
MarkV
October 27th, 2011
11:30 am
The essence of Kyle’s article: Obama does something that people may like, therefore it is bad.
Kyle’s claim: it is like the stimulus, which did not work. The usual Republican falsehood, which they want to sound like the truth if they keep repeating it.
UGA 1999
October 27th, 2011
11:34 am
MARK….under Obama’s own admittal the stimulus did not work. Remember this “pass the stimulus and the unemployment rate will not rise above 8%”
Dude it failed!
Doug B
October 27th, 2011
11:37 am
“So, it’s another couple of billion bucks piled onto the debt, without adding much bang to the economy.”
Doesn’t it just cost us a couple of billion bucks if most of them default on their mortgage? Very misleading statement, if so.
UGA 1999
October 27th, 2011
11:39 am
Doug…who is “them”?
TruthBe
October 27th, 2011
11:44 am
Their are many reasons that Employers aren’t hiring but the main one is OBAMACARE.
Obamacare killed jobs because NO one knows the costs this will create. Cap and Trade Manmade Climate Change is another big job killer. Both are democrat’s babies. America needed REAL Healthcare Reform not another Government Takeover Agency like obamacare.
UGA 1999
October 27th, 2011
11:47 am
Truthbe….Amen.
TruthBe
October 27th, 2011
11:47 am
getalife, You are the pathetic one. You liberal progressive democrat socialist parasites are destroying this great Nation.
UGA 1999
October 27th, 2011
11:48 am
http://rockcenter.msnbc.msn.com/_news/2011/10/27/8495501-now-hiring-north-dakota-oil-boom-creates-thousands-of-jobs
Drill baby drill!!!
DannyX
October 27th, 2011
11:48 am
You heard it right here first, link to this post when the October employment figures are released. It will mean more “bad” news for Republicans.
The unemployment rate will take a big dip, and will be under 9%.
UGA 1999
October 27th, 2011
11:48 am
Truthbe…just dont reply to him….he never makes any sense.
UGA 1999
October 27th, 2011
11:50 am
DannyX…..you are probably right! Thank God those one percenters may start hiring a few! haha
MiltonMan
October 27th, 2011
11:51 am
Obozo at it again:
(1) Go to school & major in some crap program, take out thousands in loans, graduate and not find a job because of your stupid choice of majors. I will forgive/modify your loans on the backs of the taxpayers.
(2) Buy a house you cannot afford because as a Democrat I feel that everybody deserves to own a house. I will modify your mortgage on the backs of taxpayers.
(3) Work hard, develop a skill that is in demand, go to college & actually major in an employable area, pay your bills, your mortgage, etc. Oh wait. You are part of the evil rich & you need to pay your fair share.
Gimme Gimme Gimme
October 27th, 2011
11:54 am
The Democratic road map.
Free Health care, then it will be free college, then it will be free Internet, then free pizza and on and on and on.
They have no clue this money actually has to come from somewhere.
The Great and Powerful Community Organizer
October 27th, 2011
11:55 am
“You cons are pathetic Americans”
You Libtards are ignorant Americans
The Great and Powerful Community Organizer
October 27th, 2011
11:57 am
“The unemployment rate will take a big dip, and will be under 9%.”
HAHAHAHAHAHAHAHAHAHA!!!!! Not while I’m running the show!
MiltonMan
October 27th, 2011
11:59 am
“cons = pathetic Americans.” So ignorant yet so symbolic of the uber liberal mindset.
I am guessing the author of this statement (that would equal an IQ of about 35) would strongly believe that those “great” Americans would be in the OWS crowd, Jesse jackson, John Edwards, etc, etc.
MiltonMan
October 27th, 2011
12:02 pm
Gimme:
“then it will be free Internet”
It has been around for awhile: E-Rate & Universal Service Fund. Grandiose Liberal ideas that is wrought with fraud.
Rise, you brave Monions!!
October 27th, 2011
12:04 pm
Bane man: Things were better under Bush.
Really? How about Lehman employees, did they “prosper” under the great and mighty Bush?
By the way, where are all those jobs the massive tax cuts of the Bush years were supposed to bring?
Huh?
222
October 27th, 2011
12:08 pm
It’s ludicrous to think one man can fix the problems of this nation. One player doesn’t win a Superbowl or the World Series. It takes a team working together, toward the same goal. The President, the democrats and the republicans are not working together as a team toward the goal of reducing unemployment, etc…. The Republicans are hell bent on unseating President Obama and nothing else. Hence, they will oppose, block, and destroy anything that is contrary to their goal of unseating the President, and the nation will continue to suffer as a result.
Sidebar: How many of us pay the same prices for gas, groceries, etc that we paid in 2008, 2007, 2002, 1990, etc? It’s simply silly to say the nation’s budget should now be equal to what it was in some year that is long past. The GOP is just dumb for advocating such lunacy, yet the uninformed and ignorant buy into their rhetoric.
UGA 1999
October 27th, 2011
12:09 pm
Rise….what about the the Solyndra employees?
Lil' Barry Bailout (Revised Downward)
October 27th, 2011
12:10 pm
The tax cuts worked while our President Bush was in office (4-6% unemployment). How Obozo screwed it up is a real tragedy for the 9%.
UGA 1999
October 27th, 2011
12:10 pm
222….whos money does that money consist of?
UGA 1999
October 27th, 2011
12:10 pm
222….whos moeny does that budget consist of?
UGA 1999
October 27th, 2011
12:11 pm
Budget not money.
MarkV
October 27th, 2011
12:11 pm
UGA 1999 @11:34 am
“.under Obama’s own admittal the stimulus did not work.”
Not true.
“ Remember this “pass the stimulus and the unemployment rate will not rise above 8%””
An economic forecast is never a certainty. Does not prove anything.
The Great and Powerful Community Organizer
October 27th, 2011
12:12 pm
“The GOP is just dumb for advocating such lunacy, yet the uninformed and ignorant buy into their rhetoric.”
NO! The uninformed and ignorant vote for ME!!!
UGA 1999
October 27th, 2011
12:13 pm
MarkV….IT PROVES THAT THE VERY THING IT WAS MEANT TO PRODUCE, IT DID NOTHING! OMG!
Even Obama admitted this failure.
Lil' Barry Bailout (Revised Downward)
October 27th, 2011
12:13 pm
222, fine. Obozo increased federal spending to 25% of GDP from 20%.
It’s the spending, stupid.
UGA 1999
October 27th, 2011
12:13 pm
MarkV….Do you like your government speanding your money on programs that were proven not to work?
Rise, you brave Monions!!
October 27th, 2011
12:14 pm
The tax cuts worked while our President Bush was in office (4-6% unemployment).
Hahaha hahahaha hahahahah hahahahah. That’s a good one.
By 2008 an economy facing worldwide collapse and depression, jobs hemorrhaging in the hundreds of thousands. Massive bailouts required to right the ship and stave off disaster. Yeah right, Georgie’s tax cuts worked all right. Bwa haha. Try again, sucker.
Rise, you brave Monions!!
October 27th, 2011
12:17 pm
Hey UGA man: “MarkV….Do you like your government speanding your money on programs that were proven not to work?”
The only thing that’s “proven not to work” is the free market ideology that has reigned for much of the last decades. That failed ideology went belly up in 2007-8 and only the dead-enders in the GOP have failed to look down and realize there’s no ground under their feet.
MarkV
October 27th, 2011
12:18 pm
UGA 1999 @12:13 pm “MarkV….IT PROVES THAT THE VERY THING IT WAS MEANT TO PRODUCE, IT DID NOTHING! OMG!”
Facts: Before stimulus, economy in free fall, negative growth rate. After stimulus, small but positive growth rate. Any more questions?
“Even Obama admitted this failure.”
Not true. Obama has admitted that it the stimulus was not sufficient, because the severity of the economic conditions was not adequately know when it was proposed.
Obozonomics
October 27th, 2011
12:20 pm
HDB,
People like you are the reason we have partisan issues, the GOP has MANY ides sitting on Harry Reid’s desk. The problem is they are still sitting there. So if you want GOP ideas ask Harry Reid for them; there are MANY.
UGA 1999
October 27th, 2011
12:21 pm
Rise…WRONG….free market has worked fantastic in this country for over 200 years. Haha i know it is hard but try to keep up and read your history.
UGA 1999
October 27th, 2011
12:22 pm
MARKV….and since Obama has been in office the economy has been in a steady free fall…..your point?
GuvMINT is the anzer
October 27th, 2011
12:23 pm
GuvMINT is great..why look at the Post Office…AMTRAK…Social Security…Medicare. See how great they work. What’s the problem?
getalife
October 27th, 2011
12:23 pm
Yup.
2.5 % economic growth is horrible news for you cons and your failed corrupt party.
Just look at you spew.
Read your pitiful comments.
You bet against your country and lost.
You bow down for the 1 %.
When will you radical cons man up and start acting like Americans?
UGA 1999
October 27th, 2011
12:24 pm
Guv….you are right….”I just loves me some Obama gubament!” haha
UGA 1999
October 27th, 2011
12:24 pm
NO ONE RESPOND TO GETALIFE!
Rise, you brave Monions!!
October 27th, 2011
12:25 pm
UGA: Rise…WRONG….free market has worked fantastic in this country for over 200 years. Haha i know it is hard but try to keep up and read your history.
Free market heavily constrained by New Deal era reforms?
90% tax rates in the 1940s and 50s ensured productivity for a couple of decades.
Now? Well just look at the numbers.
Free market = failure
Obozonomics
October 27th, 2011
12:26 pm
HDB,
“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”
BS in basket weaving and TWO masters in how to be a socialist are not the best choices…
UGA 1999
October 27th, 2011
12:27 pm
Rise….”new deal era reforms” hahaah really? Such as?
You are comparing an economy to a time when China was not minipulating their currency. Also at that time America was more concerned with making good long lasting products instead of going out and looking for the cheapest labor…..Great job (clinton) Nafta!!
MarkV
October 27th, 2011
12:27 pm
According to Kyle’s (and other conservatives’) arguments, it is wrong for people to get more money, because they would not spend it (“First, it assumes all of the monthly difference will be spent, not saved. History suggests that won’t happen.”) History does not anything like that.
Instead, he and his ilk suggest to give more money to “job creators” by lowering the taxes (as if companies did not have enough money now), and getting rid of regulations, because then they would start producing products, which would be bought by…. By whom? By those people who do not spend their money?
getalife
October 27th, 2011
12:27 pm
Too much truth for you ug?
You are the most pathetic con on this blog.
Well except for Andy
GuvMINT is the anzer
October 27th, 2011
12:27 pm
Liberalism = Failure