Report of the Obama administration about the state of the national labor market has caused new concerns about the prospects of the U.S. economy out of recession.
Just a month ago, a surprisingly high rate of company income and steady growth of the U.S. economy gave investors reason for optimism. Industrial Dow Jones Industrial Average reached its highest level in four years. Then it all went wild. The general concern about the possible withdrawal of Greece from the eurozone supplemented fears about the possibility of bank failure in Spain.
Gloomy picture worsened on Friday released a progress report the White House on employment: according to the document, the increase in jobs in the United States in May amounted to only 69,000, more than half less than that predicted by economists, and unemployment rose to 8.2 c 8,1 percent . The report, in turn, caused the most significant this year's stock market drop on Friday, reducing switches on the Dow by 275 points.
Disappointing Employment Report, as expected, drew everyone's eyes on the White House and Barack Obama. Meanwhile, President of the United States proposed actions clearly underscore the economic recovery, as he, just five months before the election, constrained relations with Europe, China, and with legislators in his own country, whose interests do not always coincide with the presidential.
In his traditional address to the nation Saturday Obama, referring to global problems including the causes inhibition of the U.S. economy, Congress gave special criticism: "While we can not completely control everything that happens in other parts of the world, there are many things we can control for home. There are many steps that we can do right now to help create new jobs and economic growth. "
Do not directly calling their opponents, the Republicans, Obama said that Congress did not approve of the president's actions, such as the involvement of unemployed construction workers to the reconstruction of roads, bridges and runways, empowering small business tax breaks for hiring new staff, to assist the authorities in the state pay work of state employees - teachers, firefighters and police officers.
Many experts remind us that even in 2008 when the country was on the verge of a collapse of the financial system, the majority of Republicans in Congress have rejected the rescue plan for the economy offered by their fellow party members, George W. Bush - well, and help the Democratic president they have even less incentive, especially given the low chances number of legislators for reelection in November.
Meanwhile, experts say, the continuation of economic anemia on hand as Obama's Republican rival Mitt Romney, calling for a change of leadership, as well as Republican lawmakers, who, unlike Obama and the Democrats' call for the extension and deepening of the pledged during the Bush administration has preferential tax regime the wealthiest Americans.
Some observers believe that the situation in the U.S. economy and, in particular, the employment is directly dependent on the escalating fight for the White House. Here's how to comment on Friday's disappointing data on unemployment report, a political correspondent for the Washington Post's Dan Balls:
- I think that for the White House is a wake-up call, reminding of the forms, which took the current election campaign. This is a moment that brings clarity. We all witnessed the strife that accompany the campaign. I am referring to the Obama campaign attacks on Mitt Romney's past activities as head of the investment firm Bain Capital, as well as the return of the tycoon Donald Trump a Republican to the question of the authenticity of the birth certificate of President Obama. Report on unemployment, released on Friday, reminded all of us, in what situation is the country, and what is the problem, deeply caring majority of voters. I think to some extent, this report can make both candidates, Obama and Romney, to return to the heart of the reasons why the country was in such a situation, and think about what each of them intends to do about it.
Trying to assign primary responsibility for the sluggish state of the U.S. economy on the Republicans, Obama also removes some of the blame, and Europe - here he resorts to more diplomatic expressions such as "cloud, pending on the side of the Atlantic Ocean."
- The crisis in the European economy casts a shadow on our own, - the president said. - He belongs to a group of factors,
impeding the full recovery from the crisis and lay the foundations of the economy strong.
Currently, unemployment in the eurozone has reached 11 percent - the highest figure since it 1995.
Last week, Barack Obama on video talking to German Chancellor Angela Merkel, French President Francois Hollande, and Italian Prime Minister Mario Monti. The leaders discussed the development of the economic situation in Europe and the agenda of the June meeting of the "twenty" in Mexico. U.S. Treasury Secretary Timothy Geithner continued his telephone talks with German counterpart, Wolfgang Schauble. A deputy U.S. Treasury Leyel Brainard on Friday completed a week-long trip with consultations in Athens, Frankfurt, Madrid, Paris and Berlin. The United States is trying to convince Europe of the need for greater use of the stabilization fund in the amount of euro 700 billion euros.
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