Economy

Caught between Tuesday’s election results and Friday’s unemployment numbers, the White House faces increased pressure to slow spending next year but also to produce more Main Street jobs to match Wall Street’s recovery.

Going into the 2011 budget cycle, the administration now appears on course to impose close to a freeze on new discretionary appropriations after the double-barrel increases in 2009 and 2010. The costs of the Afghanistan war are a wild card, but even before the polls closed Tuesday, White House Budget Director Peter Orszag was talking up deficit reduction in New York, and his earlier guidance to agencies calls for alternatives that assume a freeze at 2010 funding levels, or a 5 percent reduction.

Republicans warn that President Barack Obama can’t ignore what they see as Tuesday’s backlash against the “overspending” and “overgovernment” in his first year in office...

A former official with the White House Office of Management and Budget says the net number of jobs created by President Obama's "stimulus" program is zero or worse.

The White House is boasting that 650,000 jobs have already been saved or created under President Obama's economic stimulus plan, and that the program is on track to reach the president's promise of 3.5 million jobs by the end of next year. White House economic adviser Jared Bernstein says when adding in jobs linked to $288 billion in tax cuts, the stimulus plan has created or saved more than one-million jobs.

However, J.D. Foster, an economist at The Heritage Foundation, says the White House is making brazen claims about job creation during a time of rising unemployment. He believes their figures are "fraudulent and misleading"...

The federal budget deficit has surged to an all-time high of $1.42 trillion as the recession caused tax revenues to plunge while the government was spending massive amounts to stabilize the financial system and jump-start the economy.

The imbalance for the budget year ended Sept. 30, more than tripled last year's record. The Obama administration projects deficits will total $9.1 trillion over the next decade unless corrective action is taken.

As a portion of the economy, the budget deficit stood at 10 percent, the highest since World War II, according to government data released Friday...

(CNSNews.com) - Weaknesses in the economy and financial markets--and the government's response to them--have helped boost federal budget deficits, which reached a record level in fiscal year 2009, the General Accountability Office reported on Thursday.

The situation probably won't improve any time soon: "While a lot of attention has been given to the recent fiscal deterioration, the federal government faces even larger fiscal challenges that will persist long after the return of financial stability and economic growth," the report says.

The GAO has been publishing long-term fiscal simulations since 1992, in response to a bipartisan request from Congress. According to the GAO, lawmakers asked for the projections because they were concerned about the long-term effects of fiscal policy...

(CNSNews.com) – A former Republican congressional budget chief called the Obama administration’s claims to fiscal responsibility “hypocritical” and “laughable,” noting in particular the mounting unemployment numbers (9.8 percent nationwide) despite the $787-billion stimulus plan enacted in February that he said was poorly designed.

"The Obama Administration's claims of fiscal responsibility are both hypocritical .... [a]nd laughable," Douglas Holtz-Eakin, who served as director of the Congressional Budget Office (CBO) from 2003 through 2005, wrote in an Oct. 14 memo to Republican members of the House of Representatives...

Washington (AP) - Job openings fell to the lowest level in nine years in July, according to a Labor Department report Wednesday, as businesses remain reluctant to hire despite signs the economy is improving.

The department's Job Openings and Labor Turnover survey, or JOLTS report, found that businesses and government advertised 2.4 million open positions on the last day in July, down from 2.5 million in June. That's also the fewest openings since the department began compiling the data in December 2000.

Still, jobs are being added in some sectors, as companies seek more health care, technology and child care workers...

The unemployment rate jumped almost half a point to 9.7 percent in August, the highest since 1983, reflecting a poor job market that will make it hard for the economy to begin a sustained recovery.

While the jobless rate rose more than expected, the economy shed a net total of 216,000 jobs, less than July's revised 276,000 and the fewest monthly losses in a year, according to Labor Department data released Friday. Economists expected the unemployment rate to rise to 9.5 percent from July's 9.4 percent and job reductions to total 225,000.

By contrast, in a healthy economy, employers need to add a net total of around 125,000 jobs a month just to keep the unemployment rate stable...

A provision in President Obama's health care reform plan that requires businesses to offer health insurance to their workers or face a federal tax would cost employers at least $49 billion dollars a year, putting 5.2 million employees at risk of unemployment or underemployment, according to a new study.

"Health care reform is not going to be free," said economist Mark Wilson, who authored the study, which was commissioned by the conservative Heritage Foundation.

Under the provision, known as the play-or-pay mandate, another 10.2 million employees will face stunted wages and the loss of their benefits as employers try to find ways to fund the mandates...

WASHINGTON -- Government officials overseeing a $700 billion bailout have acknowledged difficulties tracking the money and assessing the program's effectiveness.

The information was contained in a document, released Wednesday, of a Dec. 10 meeting of the Financial Stability Oversight Board. The panel, headed by Federal Reserve Chairman Ben Bernanke, includes Treasury Secretary Henry Paulson and Securities and Exchange Commission chief Christopher Cox...

WASHINGTON – Citing danger to the national economy, President Bush approved an emergency bailout of the U.S. auto industry Friday, offering $17.4 billion in rescue loans in exchange for tough concessions from the deeply troubled carmakers and their workers.

The government will have the option of becoming a stockholder in the companies, much as it has with major banks, in effect partially nationalizing the industry...