Atlantis Alumni

Friday, June 3, 2011

Obama's Tinmidity On The Economy May Cost Him Re-election

Economists Paul Krugman and Robert Reich have been warning that we are in danger of falling into a double dip recession. Today's job numbers are terrible. But it may be too late for Obama to take the steps necessary to halt our slide now.

Robert Reich:

The President cannot be reelected if the economy tanks. He may not even be reelected on an anemic recovery in which unemployment remains nearly this high. But all incumbents are endangered. Republican House members from swing districts are toast if they don’t show voters they’re actively working on the twin problems of jobs and wages.

Several steps need to be taken right away. Exempt the first $20,000 of income from payroll taxes for two years. Lend money to cash-starved state and local governments. Initiate a new WPA for the long-term unemployed. Amend bankruptcy laws to allow homeowners to include their prime residencies in personal bankruptcy (giving them more bargaining leverage with their lenders to renegotiate mortgage loans).

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