Source:
New York Times
President Obama drives a Chevy Volt at a tour of a General Motors plant. DETROIT — President Obama came here on Friday to promote an economic success story, but even before he could get out of Washington, he was handed new evidence of the continued challenge he faces from the sputtering recovery.
Mr. Obama was fired up at Chrysler and General Motors plants before enthusiastic autoworkers as he related the good news that the companies had returned to profitability and added jobs since their unpopular taxpayer bailout over a year ago. His remarks, however, competed with the news that the economy’s growth had slowed in the second quarter of the year, reinforcing the widespread view that unemployment was likely to remain high for some time.
-snip-
The government has all but run out of tools to fix things.
The boost from Mr. Obama’s two-year stimulus package is waning, and Republicans have worked hard to convince many voters that the tax cuts and spending did not work in the first place — a contention that many economists dispute. Senate Republicans have blocked Mr. Obama’s additional stimulus initiatives, including aid to the states and the long-term unemployed and, on Thursday, a package expanding tax cuts and lending assistance for small businesses. Moreover, the economic slowdown is certain to embolden Republicans in arguing against letting the Bush income tax cuts for the wealthy expire as scheduled by law after this year, as Mr. Obama wants, to help reduce the federal debt.
-snip-
In Detroit, Mr. Obama enthusiastically accentuated the positive and got a rousing reception from autoworkers whose jobs were recently in jeopardy. He emphasized that the economy had grown in the last quarter, making for a full year of growth; it had been shrinking at the rate of about 6 percent a quarter when he took office. And
he told an estimated 1,500 union workers at each of the auto plants that they had “vindicated” his belief that the widely unpopular bailout would work.
The president — showing energy reminiscent of his campaign rallies — brought the workers at both plants to their feet, applauding and cheering, when he concluded: “Don’t bet against the American worker. Don’t bet against the American people.” -snip-
“I want you to remember, though, that if some folks had their way, none of this would have been happening,” he said. “This plant and your jobs might not exist.”
Afterward, workers were happy to tell reporters their stories of newfound hope, even some who had not supported Mr. Obama. “There’s still a little fear here,” said Peter Orlando, 46, a Chrysler worker who identified himself as a political independent. “But a little fear is a good thing” to motivate people, he said. Naming Southern senators who opposed the bailout, he added, “The people that nay-sayed us, I’d like them to come and work in our shoes for eight hours.”
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http://www.nytimes.com/2010/07/31/business/economy/31obama.html?_r=1&partner=rss&emc=rss
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