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Obama MTP Interview: Obama Big Three automakers ‘strategic mistakes’
With the economy deteriorating rapidly, the nation’s employers shed 533,000 jobs in November, the 11th consecutive monthly decline, the government reported Friday morning, and the unemployment rate rose to 6.7 percent.
The decline, the largest since December 1974, was fresh evidence that the economic contraction accelerated in November, promising to make the current recession, already 12 months old, the longest since the Great Depression. The previous record was 16 months, in the severe recessions of the mid-1970s and early 1980s.
“We have recorded the largest decline in consumer confidence in our history,” said Richard T. Curtin, director of the Reuters/University of Michigan Survey of Consumers, which started its polling in the 1950s. “It is being driven down by a host of factors: falling home and stock prices, fewer work hours, smaller bonuses, less overtime and disappearing jobs.”
The employment report increased the likelihood that Congress, with the support of President-elect Barack Obama, will enact a stimulus package by late January that could exceed $500 billion over two years. More than half that money would probably be channeled into public infrastructure spending. Many economists consider such investments an effective way to counteract, through federally financed employment, the layoffs and hiring freezes spreading through the private sector.
“Basically $100 billion of public investment in such things as roads, bridges and levees would generate two million jobs,” Robert N. Pollin, an economist at the University of Massachusetts, said. “That would offset the two million jobs that we are now on track to lose by early next year.”
CHICAGO – Bill Richardson is beardless and back in the cabinet. The governor of New Mexico and former presidential candidate appeared beside President-elect Barack Obama on Wednesday to accept his third cabinet-level post, this time as secretary of commerce.
Mr. Richardson, the first Hispanic chosen for Mr. Obama’s cabinet, made remarks in both English and Spanish as he took the assignment, signaling the importance of his selection for the new administration. Mr. Obama said he picked Mr. Richardson because of his deep experience and skills, not his ethnic heritage, but promised to produce a diverse senior team.
“When people look back and see the entire slate, what they will say is – not only in terms of my cabinet but in terms of my White House staff – I think people are going to say this is one of the most diverse cabinets and White House staffs of all time,” said Mr. Obama, who will be the first African American president. “But more importantly, they’re going to say these are all people of outstanding qualifications and excellence.”
Hispanic groups have lobbied strongly on behalf of Mr. Richardson, arguing that Hispanic voters in last month’s election helped deliver at least four states for Mr. Obama that voted for President Bush four years ago: Nevada, Colorado, Florida and Mr. Richardson’s New Mexico. Mr. Obama is also eyeing Rep. Xavier Becerra of California, a member of the Congressional Hispanic Caucus, to become the United States trade representative, a position that has had cabinet status in the past.
Mr. Richardson has served in the cabinet twice before, first as President Bill Clinton’s ambassador to the United Nations and then as his secretary of energy. Mr. Richardson had his eye on secretary of state this time around but lost out to Senator Hillary Rodham Clinton. Although the commerce slot is generally seen as a second-tier position, Mr. Obama said it would play a pivotal role in setting and executing his economic recovery agenda.
“Well, commerce secretary is a pretty good job, you know,” Mr. Obama said to suggestions that it was a consolation prize for Mr. Richardson. “It’s a member of my key economic team that is going to be dealing with the most significant issue that America faces right now and that is how do we put people back to work and rejuvenate the economy?”
As for the beard that Mr. Richardson grew after dropping his own bid for the presidency earlier this year, it was gone by Wednesday morning’s news conference. Mr. Obama, tongue in cheek, declared that a mistake. “I thought that whole western rugged look was really working for him,” the president-elect said.