Politics
‘Brinksmanship’ Stalls Economy Work: Obama
Economic Initiatives
At Johnson Controls, the largest U.S. auto supplier, the president repeated the economic initiatives he wants passed: renewal of a 2-percentage-point cut in the employee-paid portion of the payroll tax and extended unemployment benefits that are set to expire on Dec. 31; establishment of an infrastructure bank to fund public works spending; ratification of free-trade deals; and overhauling patent law.
“The problem is not that we don’t have answers,” he said. “The problem is folks are playing political games.”
Obama is likely to amplify the theme next week when he sets out Aug. 15 on a three-day, campaign-style bus tour through Minnesota, Iowa and Illinois.
Obama spoke on the same day that eight of the Republicans running for their party’s presidential nomination met for a debate in Iowa, with the Democratic president a prime target. Mitt Romney, the former Massachusetts governor who is leading the other Republican contenders in polls and fundraising, said in Pella yesterday that Obama won’t win Iowa in 2012 “because Iowans will recognize his presidency has failed.”
Attacking Obama
At last night’s debate, Romney stressed his business experience and criticized Obama’s handling of the debt-ceiling issue. Asked if he would have signed into law the compromise agreement that reached the president’s desk last week, Romney said, “I’m not going to eat Barack Obama’s dog food.” Obama has done “the exact opposite of what was needed to be done” for the economy, he said.
While Obama took Iowa in 2008, the state went for Republican President George W. Bush in 2004.
Michigan, the location of the Johnson Controls plant, is another key state in Obama’s re-election strategy. The state has backed the Democratic candidate in the last five presidential elections, and Obama will need to keep party strongholds in his column amid voter unease over the economy.
Michigan’s jobless rate in June was 10.5 percent, according to the U.S. Labor Department. While down from a high of 14.1 percent in August 2009, the rate is higher than the national average of 9.1 percent and above the jobless rates in 29 other states.
Two Fundraisers
From Michigan, Obama flew to New York City for two fundraisers that brought in more than $2 million for his campaign and the Democratic National Committee.
The first was a reception at the Ritz-Carlton by Gary Hirshberg, chief executive officer of organic yogurt-maker Stonyfield Farm Inc. Obama then went to a dinner at the home of Harvey Weinstein, the co-founder of Miramax Film Corp., that was co-hosted by Anna Wintour, editor of Vogue magazine.
Sixty-five guests were scheduled to attend the two events at $35,800 per person. The first $5,000 goes to Obama’s re- election campaign and the remaining $30,800 goes to the Democratic National Committee, according to a Democratic official who wasn’t authorized to speak on the record.
The fact that Obama is seeking $5,000 donations — $2,500 for the primary and $2,500 for the general election — is an indication that he once again will forgo federal funding for the campaign. That will allow him to take in as much private money as he can raise and spend without limits.
By: Margaret Talev
Source: Bloomberg
