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Obama to keep US economy out front

Determined to keep showing the economy is on his mind, President Barack Obama was dashing to the groundbreaking of a road project, hoping to remind Americans that the massive, costly stimulus act is still churning out jobs.

world Updated: Jun 18, 2010 16:39 IST

Determined to keep showing the economy is on his mind, President Barack Obama was dashing to the groundbreaking of a road project, hoping to remind Americans that the massive, costly stimulus act is still churning out jobs.

Millions of unemployed people have yet to feel the relief. Obama was to be on the ground in Ohio for only about 90 minutes on Friday, long enough to celebrate what the White House calls a significant moment: the start of the 10,000th road project launched under the recovery act passed in the middle of the global economic crisis. The president's message is that a summer season of more help is on the way.

The economy remains the top worry of Americans this election year, people are glum about the country's direction, and unemployment hovers close to double digits.

The oil spill disaster in the Gulf of Mexico is consuming Obama's time. He calls it his singular focus, even as he has described economic recovery his top task, too. Obama's transportation secretary, Ray LaHood, said the personal attention to the stimulus milestone is important. "The economy is still lousy," LaHood said on Thursday. "I mean, we have unemployment around a little over 9 percent. And all of us believe that the way to get people back to work is to continue our progress on the recovery act. The idea that we are celebrating the 10,000 project is great news."

The president has made a practice of quick trips out of Washington to explain to local workers that the economy is growing again and that companies are hiring workers instead of shedding them in mass numbers, as they were when he took office. Each stop is meant to show he is working to help struggling people. Friday's visit will be to the Nationwide Children's Hospital in Columbus, Ohio, where a $25 million (euro 20 million) project will add turn and bike lanes and widen sidewalks.

The splash of attention is part of a broader campaign by Obama's government to promote a burst of jobs-heavy construction activity. Improvements to national parks, drinking water systems and energy plants are all on the list.

A growing body of independent economic analysis suggests the $862 billion (euro 697 billion) stimulus law has boosted jobs and kept people off the unemployment line. Exactly how many jobs is a matter of dispute. Much of the money went to programs- tax breaks, health benefits and unemployment insurance are among them, that don't lend themselves to easy head counts.

Vice President Joe Biden said on Thursday that the federal effort deserves credit for protecting or creating about 2.5 million jobs so far and is on track to save or form 3.5 million jobs by the end of this year as promised. Independent economists have offered a range of estimates.

Republican critics say the White House has not kept its promises, including that the jobless rate would not top 8 percent if the stimulus bill was passed. It is now at 9.7 percent. Less than half of Americans, 45 percent, approve of Obama's handling of the economy, a new Associated Press-GfK poll finds. White House officials say the economic signs are plenty encouraging, particularly given the state of the economy they inherited.

Biden said polling that shows a dim public view of the stimulus law is unsurprising because people don't follow the details of federal investment programs or statistical measures. "The measure of it is, is it feeling better? Are they more confident? ... Can I take a vacation? Am I going to buy this car? Do I feel better, am I going to make my mortgage payment?" Biden said. "That's what's happening in America."