Obama Shifts Focus from Afghanistan to Unemployment

Reuters reported December 3 that President Obama has shifted his focus from the fight against al Qaeda and the Taliban in Afghanistan to the nation's still-rising unemployment rate.

The story says, "Obama is hosting a forum with business leaders at the White House to discuss how to boost jobs after U.S. unemployment hit a 26-year peak of 10.2 percent in October. But the gathering has been dismissed by critics as a public relations exercise. The president's public approval ratings have dipped as joblessness has grown, alarming members of his Democratic party who face congressional elections next year. Republicans say his economic recoveries policies have failed to deliver."

The mid-terms are shaping up to be really interesting. Casualties in Afghanistan are probably going to rise as additional U.S. forces go on the offensive and there are more frequent battles with Afghan insurgents. That could be a political liability. Add to that potentially poor economic news (there may be some signs of recovery, but most analysts are predicting prolonged periods of high unemployment), and Republicans could make a decent showing.

Reuters says, "Democrat losses in the mid-term polls could hinder Obama's ambitious legislative agenda, especially if Democrats lose control of one or both houses of Congress."

I expect Republicans will make some gains. After all, that is the historical trend. But I think taking back either the House or the Senate is a bit of a stretch. That would take a 1994-style revolt by voters.

The story continues, "Critics charge the jobs summit is more about politics than policy, and the president has already stressed the need for low-cost solutions that rule out a second stimulus package. Only about a third of the $787 billion in the emergency spending bill Obama signed in February has been spent so far. Financial markets could react badly to much more government spending that adds to the record $1.4 trillion deficit. Policies that provoked an investor-scare could also lead to a run on the dollar and force up borrowing costs, choking off the recovery. Obama recently acknowledged the threat of a double-dip recession if the deficit was not tackled."

Private sector executives who will be at the President's forum include the heads of Google, AT&T, FedEx and Comcast.

http://www.reuters.com/article/topNews/idUSTRE5B20TI20091203?