Main Street: President Obama's Plan to Build the Economy from the Middle Out

Oct 15 2012 Published by under Featured News

Obama for America’s newest ad “Main Street” is set to hit Colorado, Iowa, Nevada, and Virginia. The ad features Americans from across the country talking about how Obama’s policies are moving us forward. With consumer confidence at a 5 year high, the President knows there’s more work to be done, but his plans to build the economy from the middle out are working.

This is more than just rhetoric, and I can prove it.

Female narrator: We’ve gone from pulling into our parking lot, which was so depressing – there would be 2 or three cars in this parking lot to our parking lot being full.

Second female narrator: We have a whole second shift that we brought in, new employees, and we have a future at our plant now.

Male narrator: When you look at the president’s plan I don’t think there can be any question that we’re on the right course for today’s economy.

Second male narrator: President Obama does get what people need and that’s jobs and the opportunity to help themselves.

Third Male narrator: Stick with this guy. He will move us forward.

Chicago explains, “When the President took office, we were losing 800,000 jobs a month. But the President’s policies brought us back from the brink and we’re now moving forward again – businesses have added 5.2 million private sector jobs over the past two and a half years, the unemployment rate is at its lowest level since January 2009, and consumer confidence is at a five-year high.” They continue, “The President understands there’s more work to do to get Americans back to work and restore economic security for the middle-class, but as the hard-working Americans in OFA’s new ad highlight, the President’s plans are building an economy meant to last – from the middle out, not the top down.”

Let’s take a look at what Obama inherited and what he built.

PRESIDENT OBAMA ENTERED OFFICE FACING AN ECONOMIC CRISIS AND AN AUTO INDUSTRY ON THE BRINK OF COLLAPSE

IN THE SIX MONTHS BEFORE PRESIDENT OBAMA TOOK OFFICE, THE COUNTRY LOST THREE AND A HALF MILLION JOBS—800,000 DURING THE MONTH HE WAS SWORN IN

In The Six Months Before President Obama’s First Full Month In Office, The Economy Lost Nearly 3.5 Million Jobs. According to Bureau Of Labor Statistics data, job losses in the six months before President Obama’s first full month in office, the economy lost 3,477,000 nonfarm jobs: August 2008 (-247,000), September 2008 (-432,000), October 2008 (-489,000), November 2008 (-803,000), December 2008 (-661,000), January 2009 (-818,000). [Current Employment Statistics, Bureau Of Labor Statistics, accessed 8/22/12]

The Month President Obama Took Office, The Economy Lost 818,000 Nonfarm Jobs. According to Bureau Of Labor Statistics data, the economy lost 818,000 nonfarm jobs in January 2009. [Current Employment Statistics, Bureau Of Labor Statistics, accessed 8/23/12]

Federal Reserve Chairman Ben Bernanke In March 2009: “The World Is Suffering Through The Worst Financial Crisis Since The 1930s.” “Mr. BEN BERNANKE (Federal Reserve Chairman): The world is suffering through the worst financial crisis since the 1930s.” [Remarks By Ben Bernanke On A Council On Foreign Relations Meeting, 3/10/09]

WHEN PRESIDENT OBAMA CAME INTO OFFICE, THE AUTO INDUSTRY WAS ON THE BRINK OF EXTINCTION – WITH OVER A MILLION JOBS HANGING IN THE BALANCE

Princeton Economist Alan Blinder And Moody’s Economist Mark Zandi: In Late 2008, The Auto Industry Was “Near Collapse” And Its Demise “Threatened To Exacerbate The Recession.” “The near collapse of the domestic auto industry in late 2008 also threatened to exacerbate the recession. GM and Chrysler eventually went through bankruptcies, but TARP funds were used to make the process relatively orderly. GM is already on its way to being a publicly traded company again. Without financial help from the federal government, all three domestic vehicle pro­ducers and many of their suppliers might have had to liquidate many operations, with devastating effects on the broader economy, and especially on the Midwest. [Princeton University, 7/28/10]

2009: The Motor And Equipment Manufacturers Association Warned About “An Impending Implosion Of The [Auto] Supply Base.” “Throughout the year, MEMA, OESA and other industry analysts warned about an impending implosion of the supply base. The risk was real.” [Testimony of the Motor & Equipment Manufacturers Association Before the U.S. House of Representatives Financial Services Oversight and Investigation Subcommittee, 11/30/09]

Center For Automotive Research: If GM And Chrysler Had Failed, The United States Would Have Lost Over A Million Jobs. “Across the globe, federal, state and provincial governments stepped in to provide aid to the Detroit-based automakers with operations in their countries. These loans and other financial assistance provided to General Motors and Chrysler by the U.S. and foreign governments averted certain economic catastrophe had the companies been allowed to fail… The May results estimated that the outcomes of the orderly bankruptcy proceedings would save 1.28 million jobs in 2009, while the current review estimates slightly lower job savings of 1.14 million jobs. For 2010, original estimates (of orderly bankruptcies vs. unsuccessful proceedings) were that 267,300 jobs would be saved, while the current review estimates that 314,400 jobs were preserved.” [Center For Automotive Research, 11/17/2010]

PRESIDENT OBAMA BET ON THE AMERICAN WORKER, AND HIS AUTO RESCUE SAVED OVER A MILLION JOBS

President Obama: “Don’t Bet Against The American Worker.” In a speech to Chrysler plant workers in Kokomo, Indiana, President Obama said, “We’re coming back. We’re on the move. All three American companies are profitable, and they are growing. Some of you read last week, G.M.’s stock offering exceeded expectations as investors expressed their confidence in a future that seemed so dim just 18 months ago. And as a result, the Treasury was able to sell half of its G.M. stock. So here’s the lesson: Don’t bet against America. Don’t bet against the American auto industry. Don’t bet against American ingenuity. Don’t bet against the American worker.” [Remarks by the President to Chrysler Plant Workers in Kokomo, Indiana, 11/23/10]

Center For Automotive Research: The Auto Industry Rescue Saved Over 1.1 Million Jobs In 2009. According to a report on the difference between orderly bankruptcy proceedings assisted by government-provided debtor-in-possession financing versus an uncontrolled bankruptcy for American automakers, the Center for Automotive Research estimates that emergency loans to American automakers saved 1.14 million jobs in 2009. [Center for Automotive Research Report, 11/7/10]

SINCE THE RESCUE, THE AUTO INDUSTRY HAS ADDED NEARLY 250,000 JOBS, SALES ARE SURGING, AND AMERICAN AUTOMAKERS ARE ALL PROFITABLE FOR THE FIRST TIME IN YEARS

Since Chrysler And GM Retooled In June 2009, The American Auto Industry Has Added Nearly 250,000 Jobs. According to Bureau of Labor Statistics Current Employment Statistics survey data, motor vehicle and parts manufacturing and motor vehicle and parts retail trade sectors employed 2,252,100 Americans in June 2009. In September 2012, these sectors employed 2,498,400 Americans – an increase of 246,300 jobs. [Bureau Of Labor Statistics Current Employment Statistics Survey Database, Accessed 10/5/12]

CNN Money Headline: “Best Car Sales Since Early ’08.” [CNN Money, 10/2/12]

“U.S. Car Buyers Flooded Showrooms In September, Sending Auto Sales To Their Highest Level In More Than Four Years.” “U.S. car buyers flooded showrooms in September, sending auto sales to their highest level in more than four years. Overall sales were were up 13% from a year ago, according to sales tracker Autodata, which put the pace of sales at an annual rate of just under 15 million vehicles. That easily topped most forecasts and was even better than the spike in sales caused by the government’s ‘Cash for Clunkers’ program three years ago. The last time sales reached this level was February 2008, before gas prices surged and the financial meltdown caused a deep, sustained drop in auto sales. “[CNN Money, 10/2/12]

Last Year Marked The First Time In Seven Years That All The Big Three Automakers Were Profitable, With General Motors Posting Its Largest Annual Profit In History. “General Motors reported a record annual profit Thursday, just two years after the nation’s largest automaker emerged from bankruptcy with the help of a federal bailout. With rivals Ford Motor (F, Fortune 500) and Chrysler Group having already reported profits for last year, 2011 marked the first time since 2004 that all three major U.S. automakers were profitable at the same time.” [CNN Money, 2/16/12]

PRESIDENT OBAMA HAS A PLAN TO PUT MORE PEOPLE BACK TO WORK AND LAY THE FOUNDATION FOR LONG TERM ECONOMIC GROWTH

PRESIDENT OBAMA HAS A PLAN TO KEEP MIDDLE CLASS TAXES LOW FOR 98 PERCENT OF AMERICAN FAMILIES AND 97 PERCENT OF SMALL BUSINESSES

President Obama Proposed Extending Middle Class Tax Cuts For The 98 Percent Of Families Making Less Than $250,000. “Under the President’s proposal, the 98 percent of American families with incomes of less than $250,000 per year would continue to benefit in full from the income tax cuts expiring at the end of 2012…The President’s proposal and legislation introduced by Congressional Democrats would provide certainty for the 114 million middle class families whose taxes will go up on January 1 if Congress does not act.” [White House National Economic Council, July 2012]

The President’s Proposal To Extend The Middle Class Tax Cuts Would Continue All Tax Cuts On Business Income For 97 Percent Of Small Business Owners. “Even using an overly broad definition of small business owner, the President’s proposal to extend the middle class tax cuts would continue all tax cuts on business income for 97 percent of ‘small business owners.'” [White House National Economic Council, July 2012]

PRESIDENT OBAMA SET A THE GOAL OF CREATING ONE MILLION NEW MANUFACTURING JOBS BY 2016, WITH PLANS TO CUT TAXES FOR COMPANIES BRINGING JOBS BACK TO THE U.S. AND DOUBLING OUR EXPORTS BY 2015

President Obama Set A Goal Of Creating One Million New Manufacturing Jobs Over The Next Four Years. “President Barack Obama will set a goal of creating 1 million new manufacturing jobs over the next four years and doubling exports during the next two years, according to excerpts of his speech to the Democratic National Convention released Thursday.” [CNN, 9/6/12]

President Obama’s Tax Reform Framework Removes Tax Deductions For Moving Production Overseas And Provides New Incentives For Bringing Production Back To The United States. “Remove tax deductions for moving productions overseas and provide new incentives for bringing production back to the United States. The tax code currently allows companies moving operations overseas to deduct their moving expenses—and reduce their taxes in the United States as a result. The President is proposing that companies will no longer be allowed to claim tax deductions for moving their operations abroad. At the same time, to help bring jobs home, the President is proposing to give a 20 percent income tax credit for the expenses of moving operations back into the United States.” [The President’s Framework For Tax Reform, February 2012]

President Obama Created The National Export Initiative To Create Jobs By Putting America On The Path To Doubling Exports By 2015. “[In] order to enhance and coordinate Federal efforts to facilitate the creation of jobs in the United States through the promotion of exports… The NEI will help meet my Administration’s goal of doubling exports over the next 5 years by working to remove trade barriers abroad, by helping firms — especially small businesses — overcome the hurdles to entering new export markets, by assisting with financing, and in general by pursuing a Government-wide approach to export advocacy abroad, among other steps.” [Executive Order – National Export Initiative, 3/11/10]

PRESIDENT OBAMA PROPOSED RECRUITING AND PREPARING 100,000 MATH AND SCIENCE TEACHERS OVER THE NEXT DECADE AND CUTTING IN HALF THE GROWTH OF COLLEGE TUITION OVER THE NEXT 10 YEARS

President Obama Has Set A Goal Of Preparing More Than 100,000 New Math And Science Teachers Over The Next 10 Years. “Obama has set a goal of preparing more than 100,000 math and science teachers and training a million additional math, technology, engineering and science graduates over the next decade.” [Seattle Times, 02/07/12]

President Obama: “Help Us Work With Colleges And Universities To Cut In Half The Growth Of Tuition Costs Over The Next Ten Years.” “Help us work with colleges and universities to cut in half the growth of tuition costs over the next ten years. We can meet that goal together.” [President Obama’s Remarks At The Democratic National Convention, 09/07/12]

The Administration’s Budget Offers $1 Billion In “Race To The Top”-Style Grants To States That Slow Their Tuition Growth And Sustain Their Higher-Education Budgets. “The election-year budget, which comes at a time of shrinking revenue and rising deficits, would also double the number of work-study jobs and reward colleges and states that slow their tuition growth and sustain their higher-education budgets. As the president promised in his State of the Union address and a speech at the University of Michigan late last month, the administration would offer $1-billion in “Race to the Top”-style grants to states and expand the Perkins Loan program from $1-billion to $8.5-billion, allocating additional aid to institutions that offer relatively low net tuition, graduate relatively high proportions of Pell recipients, and prepare graduates to obtain employment and repay their loans.” [Chronicle of Higher Education, 02/13/12]

PRESIDENT OBAMA WOULD INVEST IN TRAINING WORKERS FOR GOOD-PAYING JOBS, AND IN REBUILDING OUR NATIONAL INFRASTRUCTURE

The President Proposed Training Two Million Workers For Good-Paying Jobs Through New Partnerships Between Community Colleges And Businesses. “The bulk of the job-training money would come in an $8-billion ‘Community College to Career Fund,’ which would provide money to community colleges and states to form partnerships with businesses to train an estimated two million workers in high-growth and in-demand areas.” [Chronicle of Higher Education, 02/13/12]

President Obama Proposed To Create Jobs By Using Half Of The Savings From Ending Foreign Wars To Rebuild America. To help ensure we have the infrastructure so that companies can ship their goods more efficiently throughout the country and the world, the President is calling for new efforts to revitalize American infrastructure. The President’s plan will protect taxpayer dollars by fixing existing roads and by directing funding to the best projects instead of earmarks, and will continue investments in high-speed rail. To pay for these investments, the President is proposing to use approximately half of the savings that we will achieve from winding down wars in Iraq and Afghanistan over the 6 year period of the infrastructure plan with the other half going towards paying down the debt. The President also announced that within the coming weeks, he will sign an Executive Order clearing the red tape that can slow down new infrastructure projects, accelerating those projects that have already been funded.” [“An America Built To Last,” White House, February 2012]

UNDER PRESIDENT OBAMA’S LEADERSHIP, BUSINESSES HAVE ADDED 5.2 MILLION JOBS IN THE LAST 31 MONTHS
The U.S. Economy Has Added 5.2 Million Private Sector Jobs In The Last 31 Months. In February 2010, the U.S. economy employed 106,773,000 people in the private sector. In September 2012, the U.S. economy employed 111,952,000 people in the private sector, gaining 5,179,000 jobs over the 31 month period, including the CES preliminary benchmark revision to March 2012 data. [Current Employment Statistics, Bureau Of Labor Statistics, accessed 10/5/12; CES Preliminary Benchmark Announcement, Bureau Of Labor Statistics, 9/27/12]

THE UNEMPLOYMENT RATE IS AT ITS LOWEST LEVEL SINCE PRESIDENT OBAMA TOOK OFFICE

The Unemployment Rate Is Lower Than At Any Time Since January 2009. [Bureau of Labor Statistics, accessed 10/5/12]

UNDER PRESIDENT OBAMA, MANUFACTURERS HAVE ADDED JOBS FOR THE FIRST TIME SINCE THE LATE 1990s

New York Times: “[Until 2010] There Had Not Been A Single Year When Manufacturing Employment Rose Since 1997.” “When the Labor Department reports December employment numbers on Friday, it is expected that manufacturing companies will have added jobs in two consecutive years. Until last year, there had not been a single year when manufacturing employment rose since 1997.” [New York Times, 1/5/12]

UNDER PRESIDENT OBAMA, CONSUMER CONFIDENCE HAS REACHED A FIVE-YEAR HIGH

In October 2012, Consumer Confidence Rose To The Highest Level Since September 2007. “Confidence among U.S. consumers unexpectedly jumped in October to the highest level since before the recession began five years ago, raising the odds that retailers will see sales improve. The Thomson Reuters/University of Michigan preliminary October 14, 2012 consumer sentiment index increased to 83.1, the highest level since September 2007, from 78.3 the prior month. The gauge was projected to fall to 78, according to the median forecast of 71 economists surveyed by Bloomberg News.” [Bloomberg News, 10/12/12]

We are not where we need to be yet, but we’re getting there, with no help from Congressional Republicans who have obstructed jobs bills and attempts to reward companies for keeping jobs here. Republicans have berated the stimulus while at the same time quietly begging for it for their districts. Republicans vowed on day one of Obama’s presidency to make him a one term president. They cared more about their political power than our country or your jobs.

We are going forward with pragmatic, bipartisan ideas even if one side refuses to own their ideas right now. Mitt Romney wanted to let Detroit go bankrupt. He ships jobs overseas because labor is 85% cheaper there, which means more money in his pocket and less in yours. Bainport is Romney’s idea of harvesting America for profit. Romney bets on himself, but we need a President who bets on America.

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