THU, AUGUST 6, 9:54 AM EST
Posted by Jason Djang
Driving down State Route 19 through the endless corn fields and silos, one might think that Elkhart County in Indiana is a purely agricultural community. But the landscape is dotted with numerous manufacturing plants--places that have made the region the "RV Capital of the World."
The RV industry has been hit hard by the recession. As a result, the area has experienced a 10% increase in unemployment over the last year, the second highest jump in the country. But behind such figures are the lives of real people. We got to spend some time with people like Herman and Pam, faithful employees of Monaco Coach, in advance of President Obama's announcement at their plant yesterday of billions of dollars in funds for advanced battery and electric drive projects. At its prime, Monaco employed some 1,200 staff; today, they're down to about 100, though the hope is these projects will help bring hundreds of jobs back to town. Herman and Pam told us the story of their embattled community, as they face this more than challenging economic climate together.
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THU, AUGUST 6, 9:15 AM EST
Posted by Katherine Brandon
As we told you yesterday, the President announced $2.4 billion in Recovery Act funds designated for the manufacturing of advanced batteries and electric vehicles. As part of this unprecedented investment, Michigan will receive more than one billion in grants, the most of any state, and the Vice President was in Detroit yesterday to make the announcement. In his remarks, he explained that the United States must build on Detroit's rich past in order for the state's economy, which is dominated by the automobile industry, to recover. The grants are designed to do just that – by spurring innovation, they will create jobs while making Detroit an industry leader in the 21st century.
(Vice President Joe Biden hugs Michigan Governor Jennifer Granholm at an American Recovery and
Reinvestment Act event at Next Energy in Detroit, Michigan, Wednesday, August 5, 2009.
Official White House Photo by David Lienemann)
(Vice President Joe Biden speaks in front of several plug-in hybrid vehicles at an American Recovery and
Reinvestment Act event at Next Energy in Detroit, Michigan, Wednesday, August 5, 2009.
Official White House Photo by David Lienemann)
(Vice President Joe Biden shakes hands after speaking at an American Recovery and Reinvestment Act event at
Next Energy in Detroit, Michigan, Wednesday, August 5, 2009. Official White House Photo by David Lienemann)
WED, AUGUST 5, 3:57 PM EST
Posted by Katherine Brandon
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The
President spoke directly and personally to the audience in Elkhart County, Indiana today:"For as the world grows more competitive, we can't afford to run the race at half-strength or half-speed. If we hope to lead this century like we did the last century, we have to create the conditions and the opportunities for places like Elkhart to succeed. We have to harness the potential –- the innovative and creative spirit –- that's waiting to be awakened all across America." Continuing his effort to establish a 21st century clean energy economy, the President announced an unprecedented
$2.4 billion investment in 48 new advanced battery and electric drive projects, funded through the Recovery Act. The projects were selected through a highly competitive process by the Department of Energy, and these innovative ideas will help propel America forward as we work to establish the next generation of advanced vehicles.
The $2.4 billion is the single largest investment ever in advanced battery technology for hybrid and electric drive vehicles, and coupled with another $2.4 billion in cost share from the award winners, it will result in the creation of tens of thousands of manufacturing jobs that are much needed in places like Elkhart. Places like Elkhart have been hit particularly hard as manufacturing jobs have disappeared, but this new investment provides $39 million for Navistar to create or save hundreds of jobs in Elkhart.
(President Barack Obama shakes hands with people in the audience following remarks on the economy at Monaco
RV manufacturing in Indiana. Wednesday, Aug. 5, 2009. Official White House Photo by Chuck Kennedy)
This investment also demonstrates the President’s commitment to innovation, which is key to creating the jobs of the future right here in America:
Now, history should be our guide. The United States led the world's economies in the 20th century because we led the world in innovation. Today, the competition is keener; the challenge is tougher; and that's why innovation is more important than ever. That's the key to good, new jobs in the 21st century. That's how we will ensure a high quality of life for this generation and future generations. With these investments, we're planting the seeds of progress for our country, and good-paying, private-sector jobs for the American people.
So that's why I'm here today -- to announce $2.4 billion in highly competitive grants to develop the next generation of fuel-efficient cars and trucks powered by the next generation of battery technologies all made right here in the U.S. of A. (Applause.) Right here in America. (Applause.) Made in America. (Applause.)
For too long, we failed to invest in this kind of innovative work, even as countries like China and Japan were racing ahead. That's why this announcement is so important: This represents the largest investment in this kind of technology in American history.
See, I'm committed to a strategy that ensures America leads in the design and the deployment of the next generation of clean-energy vehicles. This is not just an investment to produce vehicles today; this is an investment in our capacity to develop new technologies tomorrow. This is about creating the infrastructure of innovation.
The President closed his remarks by acknowledging the realities of the recession, because even as progress is made, families continue to struggle. But as he explained, these tough times also present great opportunity for rebuilding a stronger foundation for our country:
Energy and innovation, health care and education -- these are the pillars of the new foundation that we have to build. This is how we won't just rescue the economy, but we're going to rebuild it stronger than before.
Now, there are a lot of people out there those who are looking to defend the status quo. There are those who want to seek political advantage. They want to oppose these efforts. Some of them caused the problems that we got now in the first place, and then suddenly they're blaming other folks for it. (Applause.) They don't want to be constructive. They don't want to be constructive; they just want to get in the usual political fights back and forth. And sometimes that's fed by all the cable chatter on the media.
But you and I know the truth. We know that even in the hardest times, against the toughest odds, we have never surrendered. We don't give up. We don't surrender our fates to chance. We have always endured. We have worked hard, and we have fought for our future. Our parents had to fight for their future; our grandparents had to fight for their future. That's the tradition of America. This country wasn't built just by griping and complaining. It was built by hard work and taking risks. (Applause.) And that's what we have to do today.
FRI, JULY 31, 11:59 PM EST
Posted by Macon Phillips
The President discusses the state of the economy amidst positive signs from the GDP. Making clear that this is little comfort to those struggling, he notes that we appear to have averted an even worse disaster and offers hope for the time ahead.
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FRI, JULY 24, 11:59 PM EST
Posted by Jesse Lee
The President discusses a key factor that has been considered in the development of the health insurance reform proposals that are being considered: the impact of reform on small business.
The White House Council of Economic Advisers released a major report on the subject in conjunction with this address -- read the report as a
web page, in
pdf form, or through
Slideshare.
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During the address, the President asks that small business owners and employees give us their comments and questions on the report. What are your experiences with health care as somebody involved in small business, and what are your thoughts and questions on the new CEA report in light of those experiences?
WED, JULY 22, 2:20 PM EST
Posted by Katherine Brandon
White House Office of Management and Budget Director Peter Orszag addressed the Council on Foreign Relations today, outlining the Administration’s response to the economic crisis, and how the Administration is working to build a new foundation for economic growth and broadly shared prosperity.
Orszag reminded the audience that when President Obama was elected in November, the economy was in a freefall. The administration had to work to restore confidence. This is why the administration has been looking to the future, and laying the groundwork for a stable foundation, so that we will be prepared for future shocks. The Capital Assistance Program, the Homeowner Affordability and Stability Plan, and the Recovery Act were all part of this approach. From his
prepared remarks:
In designing the Recovery Act, we also recognized that the economic situation we inherited was so severe that we needed to assure producers and consumers that aggregate demand would be boosted not just for a few months, but for a sustained period. That is why we envisioned a Recovery Act that would ramp up rapidly in 2009, have its peak impact in 2010, and lay the groundwork for further growth thereafter.
Now, the Recovery Act has encountered some criticism in recent days – from all sides. And a piece of legislation of this size and import should be scrutinized. In conducting this debate, however, we need to understand what the Act was designed to do.
Remember that the Recovery Act was designed to take effect over a two-year period with about 70 percent of all funds going out in the first 18 months.
As a result, and since job growth typically lags behind economic activity, both Administration and independent forecasts have predicted that only a very small part of the total job creation expected from the Recovery Act would take place by the end of the second quarter. Therefore evaluating how well the Recovery Act is working based on recent movement in employment numbers is misleading.
Implementation of the Recovery Act is on schedule, and the $220 billion in relief has already had a direct impact. Orszag explained how the Recovery Act is helping our economy rebound:
Goldman Sachs, for one, projects that the Recovery Act will add about 3 percentage points on an annualized basis to GDP in the second quarter and have a similar effect in the third quarter. To be sure, other analysts may reach slightly different quantitative conclusions than Goldman Sachs – and in any case we have a way to go before anyone should become satisfied with our economic performance. Nonetheless, it is becoming increasingly clear that the economy is no longer on the brink of disaster.
The equity markets have rebounded, and credit markets have thawed. The TED spread—an indicator of stress in private credit markets—was typically below 50 basis points before the crisis. In October of last year, it peaked at over five times that, at 460 basis points. It has now settled back under 50 basis points. And the consensus among private forecasters is that the economy will return to positive growth this year.
But even as progress is made, this year will continue to be difficult for American workers, as the unemployment rate typically lags behind other parts of the economy. He argued that recovery is not just about rescue, but about rebuilding our economy so that we can have long-term, sustainable growth -- and that health care reform is an essential element to building this new foundation:
The evidence is clear that the biggest threat to our fiscal future is rising health care costs. If health care costs grow at the same rate over the next four decades as they did over the previous four, Medicare and Medicaid spending will go from about 5 percent of GDP to about 20 percent by 2050. That was about the size of the entire federal government last year.
Our fiscal future is so dominated by healthcare that if we can slow the rate of cost growth by just 15 basis points a year, the savings for Medicare and Medicaid would equal the impact from eliminating Social Security’s entire 75-year shortfall.
The fiscal importance of health care reform is indisputable. Yet in the current debate, there’s been a lot of controversy surrounding whether the bills that are emerging from Congress accomplish our fiscal goals or not. So let me be clear: the President will not sign a health care reform bill unless it is deficit neutral with hard, scoreable savings over the next decade and on a stable trajectory as the decade ends.
In addition to reforming health care in a deficit-neutral way, the President has also insisted that we take additional steps to transforming our system to one that delivers better care, rather than more care.
Because if we fail to do more to move towards a high-value, low-cost healthcare system, we will be on an unsustainable fiscal path no matter what else we do. As it stands now, the health care system does the opposite of what it should -- creating incentives for doctors and hospitals to provide more care, not the best care.
TUE, JULY 14, 5:52 PM EST
Posted by Katherine Brandon
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As part of his effort to build a stronger foundation that will allow us to lead in the global economy, the
President announced today a historic initiative to strengthen our nation’s community colleges, and called for five million additional graduates by 2020.
Speaking at Macomb Community College in Michigan, the President stressed the importance of education to America’s prosperity:
But we also have to ensure that we're educating and preparing our people for the new jobs of the 21st century. We've got to prepare our people with the skills they need to compete in this global economy. (Applause.) Time and again, when we placed our bet for the future on education, we have prospered as a result -- by tapping the incredible innovative and generative potential of a skilled American workforce. That's what happened when President Lincoln signed into law legislation creating the land grant colleges, which not only transformed higher education, but also our entire economy. That's what took place when President Roosevelt signed the GI Bill which helped educate a generation, and ushered in an era of unprecedented prosperity. That was the foundation for the American middle class.
(President Barack Obama greets the crowd at Macomb Community College in Warren, Mich.,
Tuesday, July 14, 2009. Official White House Photo by Lawrence Jackson)
Yesterday,
we told you about the Council of Economic Advisers’ report about the future of the U.S. labor market. The report described a shift towards jobs that require greater analytical and interactive skills, and the benefits of higher education. It is expected that jobs requiring at least an associate degree will grow twice as fast as jobs requiring only a high school education. The President understands that education is fundamental to reviving our economy and strengthening our workforce, which is why he is committed to increasing graduation rates, and has asked every American to commit to at least one year of higher education:
But today I'm announcing the most significant down payment yet on reaching the goal of having the highest college graduation rate of any nation in the world. We're going to achieve this in the next 10 years. (Applause.) And it's called the American Graduation Initiative. It will reform and strengthen community colleges like this one from coast to coast so they get the resources that students and schools need -- and the results workers and businesses demand. Through this plan, we seek to help an additional 5 million Americans earn degrees and certificates in the next decade -- 5 million. (Applause.)
You may remember Dr. Biden
recently spoke about the critical role of community colleges in our higher education system. Community colleges are rapidly growing, and are needed now more than ever to keep America competitive. The American Graduation Initiative will build on the strengths of community colleges and launch new initiatives and reforms that will increase their effectiveness and impact by figuring out what works and what doesn't, modernize facilities, increase graduation rates, and expand and create new online learning opportunities.
The Initiative is estimated to cost $12 billion over the next decade, but the President has outlined a plan to pay for it by cutting waste, while increasing Pell Grant scholarships and reducing the deficit:
Not since the passage of the original GI Bill and the work of President Truman's Commission on Higher Education -- which helped to double the number of community colleges and increase by seven-fold enrollment in those colleges -- have we taken such a historic step on behalf of community colleges in America. And let me be clear: We pay for this plan -- this isn't adding to the deficit; we're paying for this plan -- by ending the wasteful subsidies we currently provide to banks and private lenders for student loans. (Applause.) That will save tens of billions of dollars over the next 10 years. Instead of lining the pockets of special interests, it's time this money went towards the interests of higher education in America. (Applause.) That's what my administration is committed to doing.
MON, JULY 13, 2:00 PM EST
Posted by Katherine Brandon
The President’s Council of Economic Advisers released a report today on
"Jobs of the Future (pdf)" outlining how the U.S. labor market is expected to grow over the next few years. The report includes information on likely shifts and changes in the labor market, skills and training that will likely be most relevant in growing occupations, the importance of worker flexibility, and how the construction and manufacturing sectors are expected to rebound as a result of the Recovery Act.
CEA Chair Christina Romer will participate in a live chat at 2:30 to discuss the report. She will be taking your questions about the future job market through our
Facebook application and
WhiteHouse.gov/live, so watch it live, share your questions, and participate in the conversation.
Here is a short snippet from the report:
Well-trained and highly-skilled workers will be best positioned to secure high-wage jobs, thereby fueling American prosperity. Occupations requiring higher educational attainment are projected to grow much faster than those with lower education requirements, with the fastest growth among occupations that require an associate’s degree or a post-secondary vocational award. Key attributes of a well-trained workforce as well as elements of an effective education and training system are detailed below.
Employers value workers who can think critically and solve problems. Many highly-paid occupations require workers with good analytic and interactive skills.
Occupations that employ large shares of workers with post-secondary education and training are growing faster than others. While expected growth in construction and some manufacturing industries would create job opportunities at all skill levels, workers will be better positioned for good jobs if they acquire additional training and education. Occupations that have grown recently require more formal post-secondary schooling than occupations that have declined.
The U.S. post-high school education and training system provides valuable skills to those who complete programs in high-growth fields. However, it could be more effective at encouraging completion and responding to the needs of the labor market
Elements of a more effective system include: a solid early childhood, elementary, and secondary system that ensures students have strong basic skills; institutions and programs that have goals that are aligned and curricula that are cumulative; close collaboration between training providers and employers to ensure that curricula are aligned with workforce needs; flexible scheduling, appropriate curricula, and financial aid designed to meet the needs of students; incentives for institutions and programs to continually improve and innovate; and accountability for results.
Worker flexibility is key given the dynamic nature of the U.S. labor market and ongoing technological change. In 2003, for example, a quarter of American workers were in jobs that were not even listed among the Census Bureau’s Occupation codes in 1967, and technological change has only accelerated since then. Environmental-related occupations – which are expected to experience tremendous growth over the next decade – did not exist in comparable data prior to 2000. As we build a new foundation for economic growth in the 21st century, the nation’s workers will be better prepared for ever-changing opportunities if they have strong analytical and interpersonal skills. High-quality education and training is the best way to prepare the workers of today for the jobs of tomorrow.
FRI, JULY 10, 11:59 PM EST
Posted by Jesse Lee
The President explains how the Recovery Act helped end our economic free fall, and how his agenda is helping to set a new foundation for our economy. From health reform, to energy, to creating the jobs of the future, the President’s proposals will make our economy stronger for both the current generations and our children, all in a way that will get our deficits under control.
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THU, JULY 2, 6:40 PM EST
Posted by Katherine Brandon
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The President met with a group of innovative energy leaders today to discuss job creation and long-term plans for strengthening the industry which will play a key role in America’s economic future. CEOs from both small and large energy companies shared their own ideas about how to increase productivity through innovation and technology. Finding new ways of producing, saving, and distributing energy is not only good for our energy independence, but also presents opportunities to create millions of jobs for Americans.
In his remarks, the President explained that energy is one of the main pillars in our new economic foundation, which is why the administration has put it at the forefront of the recovery effort:
I'm pleased to say that we've achieved more in the past few months to create a new clean energy economy than we had achieved in many decades before. The recovery plan will double our country's supply of renewable energy, and is already creating new clean energy jobs. Thanks to a remarkable partnership between automakers, autoworkers, environmental advocates, and states, we also set in motion a new national policy to increase gas mileage and decrease carbon pollution for all new cars and trucks sold in this country, which is going to save us 1.8 billion barrels of oil.
And last Friday, the House of Representatives passed an extraordinary piece of legislation that would make renewable energy the profitable kind of energy in America. It will reduce our dependence on foreign oil. It will prevent the worst consequences of climate change. And above all, it holds the promise of millions of new jobs -- jobs, by the way, that can't be outsourced.
The CEOs standing behind me know a lot about these kinds of companies. These are folks whose companies are helping to lead the transformation towards a clean energy future. Even as we face tough economic times, even as we continue to lose jobs, the CEOs here told me that they're looking to hire new people, in some cases to double or even triple in size over the next few years. They are making money and they are helping their customers save money on the energy front.
So these companies are vivid examples of the kind of future we can create, but it's now up to the Senate to continue the work that was begun in the House to forge this more prosperous future. We're going to need to set aside the posturing and the politics -- and when we put aside the old ideological debates, then our choice is clear. It's a choice between slow decline and renewed prosperity. It's a choice between the past and the future.
The American people I believe want us to make the right choice, and I'm confident that the Senate will. For at every juncture in our history, we've chosen to seize big opportunities -- rather than fear big challenges. We've chosen to take responsibility. We've chosen to honor the sacrifices of those who came before us -- and fulfill our obligations to generations to come. That's what we're going to do this time, as well.
The President went on to praise the innovation that is now taking place, from LED lighting to waterproof, long-lasting concrete. He added that although the economy continues to struggle, these are advances that will help us succeed both now and well into the future. "We always meet the challenges by moving forward," he said.
(President Barack Obama shakes hands with Energy Secretary Steven Chu following remarks about innovation
in the Rose Garden of the White House in Washington, Thursday, July 2, 2009, following his meeting with business leaders. EPA Administrator Lisa Jackson is second from left. Official White House Photo by Pete Souza)
