It’s the economy, stupid, and Barack Obama knows it. It is a big week for the US President, launching several economic initiatives on trips to Milwaukee and Cleveland, and in a rare White House news conference.
Already announced is a six-year 50 billion dollar infrastructure plan, which may be paid for by ending tax breaks for oil and gas firms.
However Obama is also to announce business tax breaks for research will be made permanent, costing 100 billion dollars in total.
Driving this is the fear of decimation for the Democrats in November’s midterm elections as jobless voters exact their revenge. Unemployment remains mired at nearly 10 percent, consumer spending is down, and industrial production remains anaemic, with more and more analysts saying the recovery is in peril.
The head of President Obama’s National Economic Council Larry Summers is in China, telling China’s leaders he would like a reward for refusing US manufacturer’s demands for increased duties on imports. A stronger yuan would help the US no end.