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Obama Says U.S. Economy Needs a `Thriving Middle Class' to Help Recovery
President Barack Obama said the U.S. economy needs a “thriving middle class” as it recovers from the “worst recession in our lifetimes.”
In his weekly address on the radio and the Internet, Obama said the Sept. 6 Labor Day holiday is a time to “reaffirm our commitment to the great American middle class” and continue to work to encourage economic growth.
“That means doing everything we can to accelerate job creation,” Obama said. “So this Labor Day, we should recommit ourselves to our time-honored values and to this fundamental truth: to heal our economy, we need more than a healthy stock market; we need bustling Main Streets and a growing, thriving middle class.”
Obama next week is scheduled to outline new ideas to boost growth and hiring as the economy emerges from the worst recession in more than seven decades. He has also urged Congress to pass a package of measures to help small businesses, including tax breaks and aid to ease credit.
The U.S. Labor Department reported yesterday that private payrolls climbed 67,000 in August, more than forecast. Overall employment fell 54,000 for a second month and the unemployment rate rose to 9.6 percent from 9.5 percent in July as more people entered the labor force.
White House economic advisers are considering additional measures, including more tax breaks for small businesses and new spending on infrastructure, according to congressional aides familiar with the discussions who spoke on condition of anonymity because talks are preliminary. Obama also may renew his call for Congress to permanently extend a research-and- development tax credit.
Steps Taken
In today’s address, Obama highlighted steps already taken by his administration to encourage economic growth through infrastructure spending, aid to state and local governments and tax cuts for small businesses.
“The steps we have taken to date have stopped the bleeding,” he said.
In the Republican address, Kentucky Representative Geoff Davis, called on Obama to reduce government regulations as a way to encourage economic growth and spur employment.
He cited 191 rules and regulations, each with an annual cost to the economy of more than $100 million, which the Obama administration is preparing to enact.
“The sooner we rein in the red-tape factory in Washington, D.C., the sooner small businesses can get back to creating jobs and helping more Americans find an honest day’s work,” Davis said.
Davis has introduced legislation that would require Congress to vote on every major new rule before it can be enacted by the federal government.
“This legislation would serve as a much-needed restraining order against unelected busybodies and bureaucrats whose actions could make it harder to create jobs,” he said.
To contact the reporter on this story: Nicholas Johnston in Washington at njohnston3@bloomberg.net.
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