This is a snippet from President Obama's Labor Day speech in Detroit in front of an audience of blue collar workers:
Judging by the rhetoric, it would seem that Thursday's speech about job creation might actually involve something substantial. There will no doubt be the usual token gestures about tax cuts and reducing government expenditure to the deficit hawks and business community, but it looks like Obama has now realized that the only way to kick start the economy is to make a significant investment in the country's infrastructure.
The US economic recovery has been painfully slow largely due to the inadequete stimulus money injected into the economy by the President. While some of the money has undoubtedly saved jobs and stemmed a complete catastrophe, half baked measures have generally resulted in half baked results.
The GOP is intent on holding the country to ransom with their insane belief in eliminating taxes and stripping down government, and Obama has bowed down to much of their pressure making his own life far more difficult and reducing his chances of reelection in 2012. Perhaps now he realizes that the only way to get the country out of its current mess and boost his popularity is to completely ignore the Republicans and ram through as many Keynesian economic measures as possible.
I'm not holding out for an FDR type jobs program, but it is clear that without something significant, Obama will consign himself to political irrelevancy. When jobs are scarce and markets are jittery, Presidents are as expendable as reality show contestants. And now it is election time, Obama must decide how serious he is about a second term.
Judging by his speech in Detroit, he doesn't look ready to go just yet.