White House Estimates 9 Percent Unemployment Through Next Year’s Election
EmailThe White House today predicted that unemployment would likely stay above 9 percent through the 2012 election as President Obama campaigns for a second term, and will not drop below 6 percent until 2016.
“In sum, economic growth and job creation, while positive, have not been strong enough to bring down the unemployment rate to an acceptable level,” according to the Mid-Session Review released today by the Office of Management and Budget.
The administration cut its deficit forecast for 2011 to $1.3 trillion, 20 percent lower than the $1.6 trillion deficit projected in February. Long-term deficit reduction is also projected to be lower than previously expected, with a total reduction of $1.45 trillion over the next 10 years. This reduction reflects primarily the impact of the Budget Control Act, which lawmakers signed to avoid a default earlier this summer.
As a percentage of GDP, the deficit is projected to equal 8.8 percent, down from 10.9 percent predicted in February.
While the economy grew by 0.7 percent in the first half of this year, the White House insisted today that the economy was not headed toward a double dip recession. “We are still seeing sustained and steady growth, so we are not forecasting a double dip recession,” Council of Economic Advisers Member Katharine Abraham told reporters on a conference call today.
As the president readies to deliver his jobs proposal next week, Office of Management and Budget Director Jack Lew said that the Mid-Session Review “underscores that we need to get back on a sustainable fiscal path, and we also need to invest in long-term economic growth and job creation.”
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Unemployment was decreasing due to the President’s policies, up until the Republicans took over Congress.
Posted by: Harry | September 1, 2011, 3:52 pm 3:52 pm
So whats the sense of his speech except to continue to lie to America…Give me the stimulus, and unemployment will be under 8%..Shovel ready jobs, I have a jobs plan. Its called OBAMACARE….just more suffering from this cancerous Administration
OBAMA________VS__________AMERICA
Posted by: Yep I said that | September 1, 2011, 4:05 pm 4:05 pm
Rounded down no doubt.
Posted by: newcountryman | September 1, 2011, 4:15 pm 4:15 pm
“Unemployment was decreasing due to the President’s policies, up until the Republicans took over Congress.”
Posted by: Harry | September 1, 2011, 3:52 pm 3:52 pm
LOL!!
Posted by: Chuck | September 1, 2011, 4:39 pm 4:39 pm
If this is true the game is over..They have given up.. Not only is a primary likely,it is now inevitable.HOW COULD THEY BE SO STUPID AS TO PUT THIS OUT? ! Doesn’t ANYBODY in this administration have a clue? If I was a Democrat I would be pulling my hair out.As an American I might start-how many stupid things can you do in a weak.we can’t afford a collapsing Presidency,but that is what this fool is doing.Isn’t there a single grownup in the White House?
Posted by: Nephron | September 1, 2011, 4:57 pm 4:57 pm
Should be week,but at this rate it might be more appropriate>
Posted by: Nephron | September 1, 2011, 4:58 pm 4:58 pm
.HOW COULD THEY BE SO STUPID AS TO PUT THIS OUT? ! Doesn’t ANYBODY in this administration have a clue?
Posted by: Nephron | September 1, 2011, 4:57 pm 4:57 pm
We understand you Republican fans aren’t used to supporting politicians who tell the truth. LOL!
I think it’s best to have an honest picture of where the economy is projected to go – better possibilities to establish logical responses and priorities.
Posted by: Sam | September 1, 2011, 5:34 pm 5:34 pm
Talk about lowering expectations! But we really didn’t need them to tell us did we.
Posted by: newcountryman | September 1, 2011, 6:15 pm 6:15 pm
“White House Estimates 9 Percent Unemployment Through Next Year’s Election”
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Bad bad news… we know the economic geniuses in the oBama “administration” have underestimated unemployment by at least 2 percent. That means it will rise to 11 percent before the election.
Posted by: Michelle Shu Jas | September 1, 2011, 7:00 pm 7:00 pm
Sounds more accurate and honest than Bush’s prediction that the economy was just going through a little ‘rough patch’.
Posted by: Kate | September 1, 2011, 9:45 pm 9:45 pm
This country has gone through difficult times before. We can and must hold on until November 2012. Perhaps the greatest legacy of the Obama Presidency will be to serve as a reminder of the resilience of the American system and its citizens.
Posted by: Oliver Shagnasty | September 1, 2011, 10:06 pm 10:06 pm
Posted by: Oliver Shagnasty | September 1, 2011, 10:06 pm 10:06 pm
Hey it was just a little ‘rough patch’ as Bush described it. 8 million lost jobs later, we see what Bush meant by just a little ‘rough patch’.
Posted by: Kate | September 1, 2011, 10:29 pm 10:29 pm
Presidents with bad economies and high unemployment don’t get relected.
Posted by: Kate | September 1, 2011, 10:38 pm 10:38 pm
Presidents with bad economies and high unemployment don’t get relected.
Posted by: Kate | September 1, 2011, 10:38 pm 10:38 pm
Depends how crappy the opposition might be.
Posted by: Kate | September 2, 2011, 12:00 am 12:00 am
He is going to announce more trickle up poverty for everyone. What I don’t understand is why the blacks will blindly vote for him when they are the ones who are the most adversely affected by his policies.
Posted by: KWHodges56 | September 2, 2011, 12:05 am 12:05 am
Posted by: KWHodges56 | September 2, 2011, 12:05 am 12:05 am
All the money has already ‘trickled up’ to the top. The corporations are making record profits. You seem to have forgotten there was a massive economic collapse under the last Bush administration. Most of Obama’s policies have helped to keep lower and middle class people surviving through a very tough economic time. The main reason Obama extended the Bush tax cuts was to get the Republicans to extend unemployment benefits – directly benefiting those still out of works and struggling.
Posted by: Kate | September 2, 2011, 12:15 am 12:15 am
According to Nouriel Roubini: we need new short-term fiscal stimulus aimed at productive infrastructure investment and commitment to medium-term fiscal austerity and long term fiscal discipline. Firms are cutting jobs because there is not enough final demand. But cutting jobs reduces labor income, increases inequality and reduces final demand. Hence, we need progressive taxation,” lender-of-last-resort support by monetary authorities to prevent ruinous runs on banks; reduction of the debt burden for insolvent households and other distressed economic agents; and stricter supervision and regulation of a financial system run amok; breaking up too-big-to-fail banks and oligopolistic trusts.”
He also remarks on the need over the longer run to invest in human capital, skills and social safety nets to “increase productivity and enable workers to compete, be flexible and thrive in a globalized economy. The alternative is – like in the 1930s – unending stagnation, depression, currency and trade wars, capital controls, financial crisis, sovereign insolvencies, and massive social and political instability.”
Posted by: Kimberly | September 2, 2011, 4:04 am 4:04 am
REALLLY??? aaaaarrrrgggghhh!!!
Posted by: MJ | September 2, 2011, 8:37 am 8:37 am
Now Obama deserves to be re-elected he is finally honest about jobs. 4 more years!
Posted by: Jason Prather | September 3, 2011, 12:18 pm 12:18 pm