Obama's Vineyard Vacation Won't Be an Escape From Economic Gloom

Aug. 18, 2011 -- President Obama and the first family retreat today from the spotlight and political rough-and-tumble of Washington for a 10-day vacation on the Massachusetts island of Martha's Vineyard.

The Obamas are headed back to the Blue Heron Farm, a spacious $20 million estate in the Chilmark section of the island, for their third consecutive year. There they'll be insulated by 28.5 acres that include four living residences, a gym, swimming pool, basketball court and putting green.

But even while the president soaks up a slice of paradise, he likely won't be able to escape the nation's looming economic woes that have even lapped the Vineyard's shores.

The most recent unemployment figures for Cape Cod and the islands, including Martha's Vineyard, show the rate has spiked since 2008, swinging as high as 13.1 percent in January 2011, up from 6.4 percent in the same month three years earlier.

While the unemployment rate is much lower during the summer months, which is peak tourist season, regional economists say island unemployment has been much higher than average, reflecting Americans' cutbacks in travel during the recession and the housing market crash.

"The farther you get away from Boston, the economic indicators fall off dramatically," said Paul Bachman, a Suffolk University economist, who studies the economy on Martha's Vineyard. "The Cape and islands regions rely on a couple of areas that have been hit very hard in the last recession, particularly housing."

Bachman said the president's latest proposals for spurring growth and creating jobs -- an infrastructure bank, payroll tax cut extension, international trade deals and extended unemployment insurance benefits -- won't likely have an impact on the island's economy.

But many Vineyard business leaders say Obama's trip -- and the increase in tourism that will come from future economic recovery -- will definitely help.