Obama Touts US Economic Gains Amid Grim News

President Barack Obama tried to highlight some good news and tout his economic plan Friday, but the grim reality of plunging employment and faltering stock markets once again stepped on his message.

Obama headed to hard-hit Ohio to attend a graduation ceremony for 25 Columbus, Ohio, police recruits whose jobs were saved by money from the $787 billion stimulus package he signed into law last month.

President Barack Obama
President Barack Obama

But the visit, the latest in a series of Obama road trips to push his economic plans, came as the Labor Department reported employers cut a higher than expected 651,000 jobs in February, pushing the jobless rate past 8 percent, a 25-year high.

The trip followed Thursday's plunge of more than 4 percent by major stock indexes as concerns grew about the economy and the future of some corporate giants.

Obama faces a rising tide of Republican criticism and Wall Street worries about his economic approach, with some conservative market analysts laying at least partial blame for the slide on his policies.

For the White House, the grim economic news has made it hard to find the right balance of blunt talk about the present and optimism for the future.

"As the president has often said, it's going to get worse before it gets better," spokesman Robert Gibbs said on Air Force One as Obama headed to Ohio to tout a minor victory for his plan.

Since Obama's inauguration on Jan. 20 the DJ Wilshire 5000, one of the broadest measures of shares traded in the United States, is down 14.84 percent or $1.4 trillion through Thursday.

"At least on Wall Street, the honeymoon is over for President Barack Obama," a Business Week magazine column declared.

Fears Over Spending

Conservative critics say some investors are unsettled by Obama's big-ticket economic solutions, including the $787 billion stimulus plan and a $3.5 trillion budget, along with his plan to raise taxes on the wealthiest Americans.

They also have questioned what they say is a lack of clear solutions to unlocking credit and easing the housing crisis.

Michael Boskin of Stanford University, who chaired the Council of Economic Advisers under former President George H.W.

Bush, said in the Wall Street Journal the market sell-off could be blamed in part on "the realization that our new president's policies are designed to radically re-engineer the market-based U.S. economy." Obama has shrugged off the critics and refused to bow to pressures from Wall Street, saying he is not concerned with the gyrations of the stock market.

"You know, it bobs up and down day to day," Obama said of the market.

"If you spend all your time worrying about that, then you're probably going to get the long-term strategy wrong." In Ohio, Obama again urged Americans to keep their eye on the big picture and give his recovery plan, which he says will save and create at least 3.5 million jobs over the next two years, time to work.

"Because of this plan, stories like the one we are celebrating in Columbus will soon take place all over this nation," he said Friday.

"All of this takes time and it will take patience." The 25 officers were expected to be laid off before Columbus received about $4 million in stimulus money, but can now graduate.

But the city does not have the money for another graduating police class.

Obama said small victories were being repeated around the country, but admitted "we've got big challenges ahead of us." "We inherited a big mess," he said.

Friday's job numbers sparked another round of criticism from Republicans, however, and more pleas for help from outside groups wrestling with the continued bad news across the economy.

"Even as Americans' job prospects grow dimmer, their savings evaporate, and their budgets tighten, Washington Democrats seem more determined than ever to continue pursuing tax hikes and pork-barrel spending increases that are only proving to make matters worse," House Republican Leader John Boehner said.

Scott Paul, executive director of the Alliance for American Manufacturing, pointed to another 168,000 manufacturing jobs lost in February.

"This is a grim moment for American workers," he said. "The economic recovery package passed last month was a good first step, but more needs to be done."