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According to the bureau of Labor statistics, the American economy added a shocking “zero” number of jobs in the month of August. This makes it the worst monthly job report this year, fueling doubts about economic recovery and increasing the pressure on President Obama.
Despite a big effort by the Obama administration to design a simulative fiscal policy in the recent past, the overall picture is still very negative. The greatest impact of this may be the Democrats’ ability to contest elections in 2012; in effect, the presidential approval index fell to the lowest of its time in office.
In August people who strongly approved of Obama’s performance fell 3 percent from 24 percent to 21 percent. On the other hand the number of people who strongly disapprove of the President’s performance rose to 42 percent from 38 percent.
Variations in this index show to what degree voters are satisfied with the performance of the President; if there is a rise in approval rating it shows that people’s concerns are being taken care of, or they feel happy. Likewise, if there is a fall in this index then voters are unhappy with the President.
The essential idea is that the President is in the midst of an uncertain economy and the political crisis will have major bearing on his hopes for a return to the White House in 2012. Everything depends on what the President has in store this time, but it will be far less ambitious than the $825 billion stimulus package of 2009.
Economists in the U.S. who advocated for government intervention call for a package of at least $300 billion to avoid backsliding of the economy. Overall unemployment rates are steady at 9.1 percent; anything less than 100,000 jobs a month would be catastrophic for the democratic campaign in 2012.
Economists estimated that the economy needs 150,000 jobs per month in order to keep pace with the growth rate of the population. But to reduce unemployment to below 8 percent, the economy needs to create more than 275,000 jobs in one month.
Initially President Obama had agreed to deliver the speech on his new job proposal on September 7, but incidentally (or intentionally) the Republican Party chose the same date to hold a televised debate. Just like with the debt deal, this incident became a platform for conflict between democrats and republicans, but the White House said it was just a matter of coincidence.
The Republican Speaker of the House of Representatives, John Boehner, asked Obama to rescheduled his speech on September 8 and the White House agreed. This shows the basic idea that even in dire economic condition and undeniable uncertainty over the future of U.S economy, Republicans are enjoying their play in politics.
But all in all, the campaigning for 2012 is firing up. From the President to the presidential candidates — everyone is preparing to roll out thier agendas in order to cement their chances. They are very much concerned with what voters are concerned with, and of utmost importantly: Jobs, jobs, and jobs.
The political environment in the U.S. is driven by the unemployment agenda because ultimately it will determine the destiny of the front-runners for 2012. Everything depends on how well they sail the American citizens out of this mess.