Sunday, August 16, 2009

Americans Fall Out of Love with Obama

THE SUNDAY TIMES: The uproar over healthcare reforms is a symptom of how Americans are falling out of love with the new president

Arriving in Montana to join battle with his critics on Friday, President Barack Obama stepped from Air Force One, stripped off his jacket and rolled up his sleeves. Little more than six months after he swept into office with some of the highest approval ratings recorded, he is fighting to save his historic presidency from turning into a one-term wonder.

Obama was ready for a vigorous defence of the healthcare reforms that have spawned verbal fisticuffs at public meetings across the country. In the event, the Montana meeting unfolded with a subdued politeness that left some White House aides wishing it had been a little more feisty, so their champion could have shown off his sparring skills.

Yet for all the heat that has recently been generated by the healthcare debate, amid wild accusations about euthanising granny and manipulating mobs, it became clear last week that medicine is far from the president’s only problem, and there may be no early cure for the economic ills that are crippling his promises of change and hope.

Speaking in an aircraft hangar moments after a hailstorm had passed over Bel-grade, Montana, the 48-year-old president attempted to calm the confrontational climate that has soured debate about his attempts to overhaul an expensive and inefficient US healthcare establishment.

Sticking to time-honoured presidential tradition, he blamed the media for getting his message wrong, and for focusing on a minority of angry protesters. “TV loves a ruckus,” he added. “What you haven’t seen on TV . . . are the many constructive meetings going on all over the country.”

Yet in one sense that ruckus has spared the White House closer scrutiny of a stuttering economy that may yet prove Obama’s ruin. Recent optimism that the worst of the recession may be over has failed to make an impact on key areas of American life, and Obama last week endured one of the toughest weeks of his presidency in terms of bad economic news.

“The rapid deterioration of the economy has slowed down,” said Alice Rivlin, a former director of the Congressional Budget Office. “But if you have lost your job, the worst may not be over for a long time. If you have a job, you may still lose it.”

The main problem for the president is that economic data suggesting improvements in growth and productivity are not yet translating into benefits for victims of recession. Mark Vitner, an economist at Wells Fargo bank, last week summed up future prospects as “a recovery only a statistician can love”.

Obama insisted earlier this month that “actions we’ve taken in the first six months have helped stop our economic freefall . . . we’re losing jobs at half the rate we were at the beginning of the year”.

That boast was promptly undermined when a barrage of negative reports was released last week, showing that personal bankruptcies surged 34% in June compared with last year; the number of homes subjected to foreclosure proceedings rose 32% as against a year ago; the number of people out of work for 27 weeks or longer reached a record 5m; and retail sales dipped in July despite a big boost from a popular secondhand car trade-in programme. Barack Obama catches cold as economic virus spreads >>> Tony Allen-Mills | Sunday, August 16, 2009