In a Time of Universal Deceit, Telling the Truth is Revolutionary.
Tuesday, October 4, 2022

Grim jobs report casts shadow on debt talks

(Getty Images)

President Barack Obama used a bleak jobs report Friday to prod Congress toward a swift agreement on deficits and the national debt. But the higher unemployment numbers hardened partisan views that a weak economy can’t tolerate added taxes or cuts in spending, both key to the grand deal Obama seeks.

White House, congressional negotiators and their aides worked to bridge differences over how to reduce long term deficits by as much as $4 trillion over 10 years. Obama plans to call the eight top leaders of Congress to the White House on Sunday to assess progress.

Summing up the difficulties facing them, House Speaker John Boehner likened the task to a notoriously confounding puzzle. “This is a Rubik’s Cube that we haven’t quite worked out yet,” he said.

A budget agreement is central to increasing the nation’s borrowing limit, currently capped at $14.3 trillion, to avoid a potentially catastrophic government default after Aug. 2. That looming deadline and a new unemployment rate of 9.2 percent heightened the pressure for a deal, uniting the two most high-profile challenges now facing Obama’s presidency.

Obama called on Congress to move quickly to raise the debt ceiling. He said uncertainty over a potential default has hindered hiring in the private sector.

“The sooner we get this done, the sooner that the markets know that the debt limit ceiling will have been raised and that we have a serious plan to deal with our debt and deficit, the sooner that we give our businesses the certainty they will need in order to make additional investments to grow and hire,” Obama said from the Rose Garden in the morning.

Obama made his case privately Friday to House Democratic leader Nancy Pelosi during a half-hour meeting at the White House. And in Congress, Boehner, R-Ohio, embraced the desire to act with speed, even though some members of his party questioned the urgency.

“While some think that, you know, we can go past August the 2nd, I frankly think it puts us in an awful lot of jeopardy and puts our economy in jeopardy, risking even more jobs,” Boehner said. “So I believe it’s important that we come to an agreement, but it has to be an agreement that really does fundamentally change our spending and our debt situation.”

Both parties as well as private economists agree that if Washington does not raise the debt ceiling by early August, the economy will be deeply shaken and perhaps slip back into recession.

Obama’s contention that hiring is already freezing up because of the uncertainty, though, is a harder case to make. There is scant evidence that the markets are acting nervously.

The yields on Treasury bonds, which should go up if investors get nervous about a default, are close to historic lows. But it is possible that anxiety is affecting investment behavior in ways difficult to pin down.

The White House and Congress are seeking common ground on a budget deal that would trim 10-year deficits by as much as $4 trillion. Obama has urged lawmakers to strive for that number, but some officials on Friday said they believed that a smaller, $2 trillion deal appeared more realistic.

The larger package would require new tax revenues and significant spending reductions in the main government benefit programs, such as Medicare, Medicaid and Social Security.

“I don’t think things have narrowed,” Boehner said Friday. “I don’t think this problem has narrowed at all in the last several days.”

The jobless numbers complicated negotiations. Republicans argued that increasing taxes would be ill-timed during an economic slowdown; Democrats said a weak economy is not the time to cut government spending.

“Conservatives are just not going to vote for a tax increase on this economy, said Rep. Trent Franks, R-Ariz.

Countering with a typical Democratic view, Sen. Sheldon Whitehouse of Rhode Island said: “It’s pretty clear that in this time of economic distress, attacks on Social Security and on Medicare are really wrong for the country.”

Pelosi emerged from what she described as a “lively” Democratic caucus meeting Friday afternoon and declared: “We are not going to reduce the deficit or subsidize tax cuts for the rich on the backs of America’s seniors and working families. No benefit cuts in Medicare and Social Security.”

“You can’t cut your way to prosperity,” the chairman of the House Democratic Caucus, Rep. John Larson of Connecticut, said following the session.

On health care, negotiators have been closing in on cuts of about $200 billion over 10 years, about equally divided between Medicare and Medicaid, with most of the burden falling on individual industries such as hospitals, drug manufacturers and nursing homes.

One Social Security proposal on the negotiating table would lower annual cost-of-living increases, reducing the retirement benefits for older Americans over the long term.

Pelosi said Democrats voiced different views on the cost-of-living proposal for Social Security during their meeting, but she did not say where she stood when asked by reporters. She said that any savings in Social Security would have to be funneled back into the trust fund that finances the retirement program.

And Whitehouse warned Obama and his aides: “They’re making a mistake if they think they can just deal away these programs.”

Obama, in an interview Friday with Seattle’s KING5 television station, sought to assure Democrats that his entitlement proposals would not harm beneficiaries.

“With respect to Social Security and Medicare, my core principle is anything that strengthens Social Security and Medicare and makes sure it’s there for the next generation I’m for,” he said. “Anything that dismantles it, weakens it, hurts current beneficiaries in ways that are fundamentally unfair, that’s not something that I’ll accept.”

Republicans have showed some new flexibility on closing tax loopholes and ending corporate tax breaks as Obama has demanded. But they say any revenue generated by those steps would have to be used to lower tax rates and simplify the tax system. Such a step would require a major overhaul of the tax code and could not be accomplished in the few weeks left before the Aug. 2 debt ceiling deadline.

Rep. Jack Kingston, R-Ga., said that if Obama and Boehner can agree on an ambitious plan to tackle the nation’s debt crisis, many lawmakers of both parties would strongly consider it despite having to swallow elements they strongly oppose.

He said House Republicans might support tax increases that derive mainly from closing unpopular loopholes. “If it’s the underbrush of the tax code,” it might not be too difficult, he said.


Associated Press writers Andrew Taylor, Charles Babington and Stephen Ohlemacher contributed to this report.

5 thoughts on “Grim jobs report casts shadow on debt talks”

  1. Hi Carl.
    A question…In your opinion, do you think that the intentional lowering of American wages is solely to assure competitive worker wages on a global scale?
    If so, isn’t globalization to the benefit of the elite, while at the same time destroying the standard of living for the middle class?
    Lastly, if these answers would be yes, shouldn’t the average American be against globalization?

    Those who have sold out Americans MAY not be American at all, and only “claim” to be Americans.

    Things which make one go “hmmmmmmmmmm.”

    • I’ve written a number posts concerning the issue of globalization. The great leveling of wages worldwide is part of the plot regardless of how low they have to go along with a waning standard of living for those that were once on top of the scale.

      Needless to say the wealthy class and the upper one percent of the population who make in excess of one million per annum don’t think too much about the effect because if you make enough money annually then you can still live quite comfortably as long as one doesn’t fritter their resources away on foolish ‘bling’. Their only enemy concerning their wealth would be hyperinflation which is a possibility and hazards us all to the rapacious, money printing engaged by the Fed~U.S. Treasury axis of evil in order to created ‘liquidity’ in the markets for the benefit of a few at the expense of the many.

      For the mid range middle class down to the lower levels the lowering of salaries and wages along with the fact that jobs/careers are getting scarce as proverbial hen’s teeth the prospects are grim. This process creates a desperate work force that will become quite pliable and obedient in order to hopefully secure and maintain a job regardless of the lower wages and zero benefits.

      The average American is grossly unread unless it might be linked to sports related statistics and sensationalistic stories found on the front page of tabloids in the supermarket checkout aisles, along with the mesmerization provided by their HDTV’s. They generally have the attention of span of chickens or less and until they find themselves out of a job, out of their home and living in a tent city or their auto’s, they simply don’t get it.

      With our now devolved duopolist represented system of government; both parties totally compromised by corporate interests, many if not most of a global nature, there’s little hope to turn things about.

      The U.S. is truly devolving into simply a minor plantation within the greater order of such along with a government that operates as that of a ‘banana republic’. Possibly our Presidente’ should start wearing a uniform in public with a swoop brimmed hat with lots of ‘egg salad’ on the brim, a ‘Sam Brown’ belt, knee high ‘jack boots’ and packin’ a holstered 9mm for the dictator effect. / : |

      Neither our Congress, now simply a hand-clapping ‘politburo’ or Obama and his contingent of appointees and hangers on from previous marginally effective to failed administrations are listening to the will of people and surely not proactive types as we might find on this forum and elsewhere in America, now simply their ‘AmeriKa’.

      Seemingly we’re finished as a nation. It’s just that the ‘fat lady’ hasn’t been enlisted to sing “America the [once] Beautiful’ in the Grand Salon as the USS America slips under the waves to its watery grave of failed empires past. : |

      Carl Nemo **==

  2. Once they starve us out then they can turn the entire US into a golf course for the entertainment of the sheiks, shahs, and pooh baahs they are so beholding too.

    They can all geek around in their little carts chasing up and down the fairways to hell looking for the evermore elusive orifice of prosperity to stab and flail with sword and club, each evermore disease ridden by their inhumanity.

    The real question is, long after we are gone, what will they do when they run out of their own ilk to screw ?

    • Spot-on Byran. Hopefully the “Red Chinese” are building world-class golf courses. Our leaders will surely know in time who their betters are, but in the very end to their shear horror! / : |

      Carl Nemo **==

  3. “President Barack Obama used a bleak jobs report Friday to prod Congress toward a swift agreement on deficits and the national debt.” …extract from article

    This President and Congress would have to be stupid not to realize that the continual massive oursourcing of America’s job infrastructure to Mexico, China, India, Malaysia and elsewhere since the mid-90’s is the cause of our unemployment problem. Either they think “We the People” are stupid concerning their nation-destroying policies or for some reason they can’t connect the dots, seemingly the answer lies in the former. They’re scamsters and we as a nation have been had bigtime…!

    Their greed for campaign bucks and evermore power has clouded their ability to protect this nation from rapacious offshoring and outsourcing of job functions overseas. In their book, “We the people” come last and fair game to be sacrified on the altar of globalism run amok; all for a few dollars, euros, shekels and yuan more. / : |

    Carl Nemo **==

Comments are closed.

%d bloggers like this: