End of 'Recovery Summer'? Democrats and Republicans Disagree

VIDEO: Economist explains what the Obama administration can do to jumpstart growth.
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Surrounded by members of his economic team, President Obama tried to put a sunny face on the end of the so-called "recovery summer" at a press conference today, describing the latest state of the economy as a positive step.

"In the month I took office, we were losing 750,000 jobs a month," Obama said. "This morning, new figures show the economy produced 67,000 private sector jobs in August, the eighth consecutive month of private job growth. Additionally, the numbers for July were revised upward to 107,000. Now that's positive news."

VIDEO: Economist explains what the Obama administration can do to jumpstart growth.
Paul Krugman Weighs In on Jobs Report

The President's comments came after new unemployment figures showed the jobless rate increased slightly, to 9.6 percent last month. The country also lost a net total of 54,000 jobs in August, primarily temporary Census positions. The job loss, while not as bad as some economist expected, still went unmentioned by Obama in his remarks.

"The key point I'm making right now is that the economy is moving in a positive direction, jobs are being created; they're just not being created as fast as they need to, given the big hole that we experienced," said Obama. "We're moving in the right direction. We just have to speed it up."

Yet, it seems as though the underwhelming recovery of the "recovery summer" has given Republicans across the country campaign ammo as they head into the mid-term elections this fall.

Video: Senate Minority Leader Mitch McConnell on "Top Line."
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"'[The] Recovery summer' has become the summer of despair," said Carly Fiorina, the Republican U.S. Senate candidate in California.

For now the President is trying to stay focused on what can be done to help the economy, claiming that it is Republicans who are stalling the process. Today he continued to push a lending initiative that he said could help provide credit to small businesses.

"Republicans in the Senate have blocked this bill--a needless delay that has led small-business owners across this country to put off hiring, put off expanding and put off plans that will make our economy stronger," Obama said.

VIDEO: Joe Biden on "This Week"
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On Monday, the president will begin outlining a number of other relatively small-bore measures, which include spending more money on infrastructure, a research tax credit, and other ways to encourage small business investment.

"For this economy to come back, it's going to have to be the private sector to come back," said Christina Romer, the outgoing chairwoman of the Council of Economic Advisers for the Obama administration. "What we're talking about now is not a second stimulus, it's targeted measures. But, they can make an appreciable difference.

Some liberal economists maintain the problem was that last year's $864 billion stimulus package was not enough.

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"It was obvious from the beginning that it was too small," said economist and New York Times columnist Paul Krugman. "He clearly needs more, the economy needs more. We need a real effort to get the economy moving."

Uncertainty of Recovery

Republicans argue that businesses are loathe to invest when facing new taxes, mandates, and regulations.

"This administration has done a lot to discourage business from growing and hiring," said Sen. Mitch McConnell (R-Ken.), the Senate's minority leader. "That's the problem."

VIDEO: Watch This Week With George Stephanopoulos
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