WASHINGTON (AP) — President Barack Obama still calls shoring up the middle class his “No. 1 priority,” but recent events overseas and at home are overshadowing the U.S. economy as a political issue.
The civil war in Syria and alleged use by Damascus of chemical weapons, political turmoil in Egypt and revelations about the extent of the National Security Agency’s surveillance programs are complicating Obama’s efforts to keep the focus on the economy.
And while the slow and uneven recovery is now 4 years old, its advance could be threatened by U.S.-led airstrikes against targets in Syria that might send already rising oil prices soaring.
The eclipsing of the U.S. recovery by other pressing events could be a factor in next year’s midterm election campaigns and in the presidential contests two years later. Also, as Obama slips more and more into lame-duck territory, his ability to shape the national agenda seems diminished.
While the unemployment rate of 7.4 percent is still well above the 5 to 6 percent typical of a healthy economy, it has been tracking down steadily since it peaked at 10 percent in late 2009. House prices are on the rise and so is consumer spending. Big banks are reporting strong profits again and regulators are winding down investigations into reckless Wall Street lending practices.
U.S. exports are inching up and the budget deficit is inching down. After four years of trillion-dollar-plus shortfalls, the deficit this year is expected to come in at just over $600 billion.
Many European countries are clawing their way out of recession. Even Greece, the poster child for a troubled economy, is managing a rare budget surplus.
via RN-T.com – Economy is being eclipsed as top campaign issue.
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