An eye-popping 257,000 private-sector jobs were added in January. The unemployment rate went down to 8.3 percent, down from 8.5 percent in December. The unemployment rate for African-Americans dropped to 13.6 percent, a drop of over 2 percent from December. The big drop may have more to do with a new computation on total Black population than an actually large reduction.

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Obama delivers his third State of the Union address Tuesday in a capital and country shot through with politics, with his re-election campaign well under way and his potential GOP opponents lobbing attacks against him daily as they scrap for the right to take him on.

Obama’s 9 p.m. EST address to a joint session of Congress and millions of television viewers will be as much as anything an argument for his re-election, the president’s biggest, best chance so far to offer a vision for a second term.

Senior political adviser David Plouffe said Tuesday morning the president is “happy to have a debate” about his performance. Asked in an interview about Republican candidate Newt Gingrich’s description of Obama as the “food stamp president,” Plouffe replied, “It’s a cheap applause line for the Republican base.”

Bill Galston, a former Clinton administration domestic policy adviser now at the Brookings Institution, said, “Almost by definition it’s going to be at least as much a political speech as a governing speech.”

“The president must run on his record,” Galston said, “and that means talking candidly and persuasively with the country about the very distinctive nature of the challenges the American economy faced when he took office and what has gone right for the past three years, and what needs to be done in addition.”

With economic anxiety showing through everywhere, the speech will focus on a vision for restoring the middle class, with Obama facing the tricky task of persuading voters to stick with him even as joblessness remains high at 8.5 percent. Obama can point to positive signs, including continued if sluggish growth; his argument will be that he is the one to restore economic equality for middle-class voters.

Implicit in the argument, even if he never names frontrunners Gingrich and Mitt Romney, is that they are on the other side.

Obama’s speech will come as Gingrich and Romney have transformed the Republican campaign into a real contest ahead of Florida’s crucial primary next week. And he’ll be speaking on the same day that Romney, a multimillionaire, released his tax returns, offering a vivid illustration of wealth that could play into Obama’s argument about the growing divide between rich and poor.

Asked in an interview Tuesday about Romney’s relatively modest tax rate in the range of 15 percent, given that he’s a multi-millionaire, Plouffe said, “We need to change our tax system. We need to change our tax code so that everybody is doing their fair share.”

Obama will frame the campaign to come as a fight for fairness for those who are struggling to keep a job, a home or college savings and losing faith in how the country works.

The speech will feature the themes of manufacturing, clean energy, education and American values. The president is expected to urge higher taxes on the wealthy, propose ways to make college more affordable, offer new steps to tackle a debilitating housing crisis and push to help U.S. manufacturers expand hiring.

For three days following his speech, Obama will promote his ideas in five states key to his re-election bid. On Wednesday he’ll visit Iowa and Arizona to promote ideas to boost American manufacturing; on Thursday in Nevada and Colorado he’ll discuss energy; and in Michigan Friday he’ll talk about college affordability, education and training. Polling shows Americans are divided about Obama’s overall job performance but unsatisfied with his handling of the economy.

The lines of argument between Obama and his rivals are already stark, with America’s economic insecurity and the role of government at the center.

Rep. Paul Ryan, R-Wis., chairman of the House Budget Committee, said that Obama “can’t run on his record.”

The president has offered signals about his speech, telling campaign supporters he wants an economy “that works for everyone, not just a wealthy few.” Gingrich, on the other hand, calls Obama “the most effective food stamp president in history.” Romney says Obama “wants to turn America into a European-style entitlement society.”

Obama will make bipartisan overtures to lawmakers but will leave little doubt he will act without their help when it’s necessary and possible, an approach his aides say has let him stay on offense.

The public is more concerned about domestic troubles over foreign policy than at any other time in the past 15 years, according to a new survey by the Pew Research Center. Some 81 percent want Obama to focus his speech on domestic affairs, not foreign ones; just five years ago, the view was evenly split.

On the day before Obama’s speech, his campaign released a short Web ad showing monthly job losses during the end of the Bush administration and the beginning of the Obama administration, with positive job growth for nearly two Obama years. Republicans assail him for failing to achieve a lot more.

House Speaker John Boehner, responding to reports of Obama’s speech themes, said it was a rehash of unhelpful policies. “It’s pathetic,” he said.

Presidential spokesman Jay Carney said Monday that Obama is not conceding the next 10 months to “campaigning alone” when people need economic help. On the goals of helping people get a fair shot, Carney said, “There’s ample room within those boundaries for bipartisan cooperation and for getting this done.”

Plouffe appeared on ABC’s “Good Morning America” with Ryan and Plouffe also was interviewed on NBC’s “Today” show and “CBS This Morning.”

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That’s the bright picture the Federal Reserve sketched in a survey released Wednesday. It said all but one of its 12 banking districts experienced some growth from late November through the end of the year.

Some sectors of the economy, notably housing, remain weak, the Fed said. But consumers spent more freely. Factories made more goods. Americans stepped up travel. And the auto industry enjoyed its best stretch of the year.

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Economists noted greater confidence in the tone of the report. For example, the central bank described auto manufacturing as “vibrant” in several districts. Consumer spending was deemed “robust” in the Dallas region.

“It has been quite a while since we have seen the Fed use words like vibrant and robust to describe any part of the economy,” said Brian Bethune, an economics professor at Amherst College. “I think one of the things driving the stronger language is that things are better than the Fed had been expecting.”

The one district that didn’t experience growth was Richmond, Va., although even there, the Fed said economic activity either “flattened or improved slightly.”

The report comes just six months after the economy nearly stalled under the weight of high food and gas prices and supply disruptions from Japan that slowed U.S. manufacturing.

The economy and the job market have both improved since then. And December may end up being the strongest month of 2011. Employers added 200,000 jobs. And the unemployment rate fell to 8.5 percent – the lowest rate in nearly three years.

“The Fed’s report Wednesday confirms what everyone else has been seeing in the economic data from retail sales to auto sales and manufacturing – activity is improving,” said Jennifer Lee, senior economist at BMO Capital Markets.

Most of the Fed’s districts reported holiday sales increased over last year. In particular, New York and Dallas’ districts reported healthy gains. Boston, New York and Minneapolis reported exceptional growth in online sales.

Consumers are spending more on cars and travel, the survey noted. Auto sales in the Atlanta area were the best sales in more than two years. Boston, New York, Richmond and Atlanta experienced gains in tourism from a year ago. In Boston alone, businesses expect double-digit growth in hotel revenue in 2012.

U.S. manufacturing continued to lift the economy, particularly in industries that make heavy equipment and steel. That has helped boost energy, farming and auto manufacturing sectors, the report said.

The depressed housing market has hurt some manufacturers, and the Fed cited weakness among furniture manufacturers in the Richmond, St. Louis and San Francisco districts.

Inflation remained subdued, largely because high energy prices have eased. That may change in the new year. Oil has climbed above $100 a barrel again, and gas prices are creeping up.

The strength shown in the Fed survey reflected other positive economic reports.

Consumer confidence hit its highest point since the spring. U.S. automakers reported their two best months of sales for 2011 in November and December. And U.S. factories ended the year with their best month of growth since spring.

Most economists predict the economy grew at an annual rate of 3 percent in the final three months of last year. That would be an improvement from the summer, when the economy expanded just 1.8 percent, and much better than the 0.9 percent annual growth rate in the first half of 2011.

Still, the U.S. economic recovery remains vulnerable. Europe’s debt crisis could lower demand for U.S. exports. Consumers may pull back on spending, especially if their wages continue to stagnate.

And Congress could decide not to extend a Social Security tax cut or long-term unemployment benefits, leaving many households with less income. Both measures expire at the end of February.

The Fed has been studying the economy’s progress but announced no new actions to try to energize it after its Dec. 13 meeting. That was taken as a sign of confidence that the economy was in no immediate danger.

But in the minutes from the meeting released last week, the Fed said it will start this month announcing four times a year how long it plans to keep short-term interest rates at existing levels.

The change is intended to reassure consumers and investors that they will be able to borrow cheaply well into the future. And some economists said it could lead to further Fed action to try to invigorate the economy.

The Fed’s next meeting is set for Jan. 24-25.

The Beige Book is released eight times a year. The findings from each of the Fed’s regional bank districts are all anecdotal; there are no numbers.

The idea is to detect trends in consumer spending, manufacturing and real estate, among other areas. Consumer spending is particularly important because it accounts for about 70 percent of gross domestic product, the value of all goods and services produced in the United States.

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The White House plans a forum Wednesday, called “Insourcing American Jobs,” that will bring together business leaders who shifted work back home. The president said Saturday in his weekly radio and Internet address that the event will discuss ways business leaders can return more jobs to the country.

“We’re heading in the right direction. And we’re not going to let up,” Obama said on the heels of the government reporting Friday that the unemployment rate fell to 8.5 percent in December.

Obama noted that the jobs report showed the economy added more than 200,000 private sector jobs last month and that more than 3 million private sector jobs had been added during the past 22 months. He said the nation was “starting 2012 with manufacturing on the rise and the American auto industry on the mend.”

The president said the U.S. couldn’t return “to the days when the financial system was stacking the deck against ordinary Americans,” citing his decision to install former Ohio Attorney General Richard Cordray as the director of the new Consumer Financial Protection Bureau while the Senate was on break, circumventing Republican opposition to the appointment.

Obama said his “New Year’s resolution” to all Americans was to “keep doing whatever it takes to move this economy forward and to make sure that middle-class families regain the security they’ve lost over the past decade.”

New York Rep. Nan Hayworth, delivering the GOP address, said the jobs report showed the difficulty that many Americans face in finding work. Hayworth said the unemployment rate has remained above 8 percent for 35 straight months, “the longest such stretch since the Great Depression.”

“Leaders in Washington should have no higher priority this year than getting our economy back to creating jobs,” Hayworth said.

The New York congresswoman said House Republicans would promote small business and reduce government regulation.

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Nearly seven in 10 say the year gone by was a bad one, more than double those who consider it a success, according to the poll. But 62 percent are optimistic about what 2012 will bring for the nation, and more, 78 percent, are hopeful about the year their family will have in 2012.

Jeff Wolfe, 33, of Farmington, W.Va., said 2011 treated him well because he was able to find steady work as a lineman. But for the rest of the nation, things were “pretty rough,” with so many Americans looking for jobs, he noted.

“For the first time since 2009, I worked all year,” he said. Wolfe said he lost work in 2008 and again in 2010. But in 2011, the father of two school-age children said he was able to catch up on bills, buy his wife a new car and renovate his home.

Overall, the poll found 68 percent of Americans described 2011 as a bad year, compared with 29 percent who felt it was a good one.

A partisan divide, much like the one that ruled Washington this year, seems the only split in public opinion on 2011. Democrats were most likely to view 2011 positively (40 percent called it good), while independents and Republicans were less effusive. Beyond that, the poll found general agreement that 2011 is best left in the past.

Mary Burke, 57, of Ridgeland, S.C., felt economic pain in 2011. She saw prices rise for all of her expenses, from her light bill to groceries. “Paying $5 for a jar of mayonnaise is outrageous,” she said.

Food and gas prices surged in 2011, but the most recent Consumer Price Index shows inflation leveling off. November statistics from the government showed a year-over-year inflation rate of 3.4 percent, the smallest such rise since April.

The AP-GfK poll found consumers are sensing the change. Just 18 percent of adults expect consumer prices to rise at a faster pace in the coming year, the lowest share to say so since the poll first asked the question in March. Most (51 percent) expect prices to rise at the same rate or more slowly.

And as the nation’s economic fortunes overall appear to be tilting slightly positive, the public’s expectations for the economy in the coming year are at their highest point since spring. According to the poll, 37 percent expect economic improvement in the next 12 months, compared with 24 percent who think the economy will slide downhill. That’s the first time since May that significantly more people said things will get better than get worse.

On a personal level, 36 percent think their household’s financial situation will improve over the next 12 months, while 11 percent think it will worsen. Americans’ financial ebbs and flows affect their personal outlook for 2012. Those whose households have faced a job loss in the past six months or who describe their current financial situation as poor are less optimistic about what 2012 holds for them and their families than others, though that does not carry over to their forecast for the nation in 2012.

Optimism about the nation’s path varies with views of the economy’s direction. Those who say things have looked better in the past month are generally optimistic (79 percent), while just half of those who say things are getting worse feel positive about what 2012 holds for the country. And about 6 in 10 of those who distrust the two major political parties to handle the economy or job creation are pessimistic about how 2012 will turn out for the nation.

Burke said she is angered by politicians in Washington who she believes fail to look out for the interests of the American people.

“They don’t care about me and you,” she said. “They only care how they are going to line their pockets.” As for the economy and nation improving in 2012, she said, “I pray and hope.”

The partisan divide in impressions of 2011 persists in the outlook for 2012, with Democrats more optimistic than either Republicans or independents. But expectations for next year’s presidential contest appear not to be a factor. Most partisans on both sides foresee victory for their side in the November 2012 presidential election: Three-quarters of Democrats say they think President Barack Obama will win re-election; three-quarters of Republicans say he will not.

The Associated Press-GfK Poll was conducted Dec. 8-12 by GfK Roper Public Affairs and Corporate Communications. It involved landline and cellphone interviews with 1,000 adults nationwide and has a margin of sampling error of plus or minus 4 percentage points.

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In a recent BlackPlanet/NewsOne poll, 74 percent of African Americans polled approve of President Obama’s handling of the economy while 26 percent disapprove.

The poll stands in sharp contrast to the Gallup Poll conducted on August 14th which found 74 percent of American disapprove of Obama’s handling of the economy, while only 26 percent of approve.

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According to Carney, the issue is not one of race. The president is helping Black people by working to boost the struggling economy and helping all unemployed Americans, he said.

“A lot of people have suffered through this great recession … this is not a political issue,” Carney said. “The American economy is the primary focus of this president and he’s very committed to assisting African-Americans and all Americans.”

Read more at The Grio.

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WASHINGTON — President Barack Obama tapped labor economist Alan Krueger for a top administration post Monday, rounding out his White House economic team ahead of a highly-anticipated announcement next week on a new jobs initiative.

Speaking in the Rose Garden, Obama said he expected Krueger, a former Treasury Department official and Princeton economist, to provide him with unvarnished economic guidance, not partisan political advice.

“That’s more important than ever right now,” Obama said. “We need folks in Washington to make decisions based on what’s best for the country, not what’s best for any political party or special interest.”

With the nation’s unemployment rate stubbornly stuck above 9 percent and much of the public deeply dissatisfied with Obama’s handling of the economy, the president has promised a new set of jobs proposals. He said Monday that he would make those announcements next week.

“Our great challenge as a nation remains how to get this economy growing faster,” Obama said. “That’s our urgent mission.”

Obama has already called for an extension of a payroll tax cut that expires at the end of the year and he wants to continue jobless benefits. Aides are considering other measures, including tax incentives for businesses to hire and direct infusions of government money into construction projects. The president has said he intends to call for additional long-term deficit reduction to help pay for the short-term spending his proposals would require.

In Krueger, Obama will gain an economist with expertise in unemployment and the labor market. If confirmed by the Senate, Krueger would replace previous CEA chair Austan Goolsbee, who left the administration earlier this month to return to the University of Chicago.

Goolsbee was the latest in a string of top White House economists to leave over the past year, forcing Obama to do a wholesale makeover of the economic team that came to the White House with him three years ago. Treasury Secretary Timothy Geithner is the only remaining top official left l from Obama’s original economics team. Last month, the Treasury Department announced that Geithner would stay on, ending speculation he would leave the administration.

Krueger spent the first two years of the Obama administration as an assistant Treasury secretary for economic policy. In 2010, he returned to Princeton University, where he has served on the faculty for more than 20 years.

While at Treasury, Krueger worked on the popular “Cash for Clunkers” program that gave people rebates for buying new, more fuel-efficient vehicles and the HIRE Act, which gave businesses tax incentives to give jobs to the unemployed.

Krueger is likely to become an important public face for the administration on the economy. Both Goolsbee and Christina Romer, Obama’s two previous CEA chairs, were frequent spokesmen for the president, appearing on television and at White House events to promote the president’s policies.

That role could be even more important in the coming months, as a host of would-be Republican successors travel around the country, campaigning hard for the GOP presidential nomination by focusing, in no small part, on Obama’s handling of the economy.

The national unemployment rate remains at 9.1 percent and has shown little improvement over the past year, despite the more than $800 billion stimulus program that Obama got Congress to pass not long after he took office. The economy also has been on a dual track of slow growth and ballooning deficits, and Obama saw the nation’s credit rating downgraded by Standard & Poor’s earlier this year as he fought congressional Republicans for weeks for a program to slow the flow of red ink.

The White House and Republican congressional leaders ultimately agreed to a compromise deal to increase the government’s borrowing authority in early August, on the cusp of default, but the S&P credit rating was lowered from AAA to AA+, nevertheless.

Obama took to the road for a series of town-hall style meetings just before he went on vacation, seeking to explain his efforts to promote economic growth and attack the stubborn high joblessness.

Appearing earlier Monday on MSNBC, Goolsbee said that “we’re still in a pretty tough spot” on the economy.

“When you come out of a recession, especially one as deep as we were in, you can’t just go back to do what you were doing before,” he said. He said growth had picked up in 2010 but “this year we’ve taken some heavy blows.”

Goolsbee, who is expected to play an informal role in Obama’s re-election bid, said investing and focusing on the “industries of the future” are the kinds of policy directions the country needs to pursue. He also said he doesn’t think that bringing another stimulus program forward is necessarily a good idea, and instead suggested tax incentives for companies to hire.

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WASHINGTON — Americans’ views on the economy have dimmed this summer. But so far, the growing pessimism doesn’t seem to be taking a toll on President Barack Obama’s re-election prospects.

More people now believe the country is headed in the wrong direction, a new Associated Press-GfK poll shows, and confidence in Obama’s handling of the economy has slipped from just a few months ago, notably among fellow Democrats.

The survey found that 86 percent of adults see the economy as “poor,” up from 80 percent in June. About half – 49 percent – said it worsened just in the past month. Only 27 percent responded that way in the June survey.

That can’t be good news for a president revving up his re-election campaign. Yet there are several hopeful signs for Obama.

Despite the perception of a weakening recovery, there has been no significant change in the number of people who say he deserves re-election: 47 percent as opposed to 48 percent two months ago. That’s a statistical dead heat with those who favor a change in the White House.

And more Americans still blame former President George W. Bush rather than Obama for the economic distress. Some 31 percent put the bulk of the blame on Obama, while 51 percent point to his Republican predecessor.

“I think Bush had a hand in it, too. Obama’s not totally responsible,” said Mary Parish, 68, of Troy, Tenn. An independent who voted for Republican John McCain in 2008, she said she doesn’t believe Obama has what it takes to heal the economy. “He’s a smooth-talking man. But he does not know what he’s doing.”

Obama also fares better than Congress in the blame department. Some 44 percent put “a lot” or “most” of the blame on Republicans while 36 percent point to congressional Democrats.

The gloomy economic outlook reflected in the poll, which was taken Aug. 18-22, follows a round of bleak government economic reports – on unemployment, the housing market and economic growth that fell below 1 percent for the first six months of the year. It was taken amid heightened worries of a new U.S. recession, fallout from a downgrade of the country’s credit rating and a spreading European debt crisis.

As the public’s outlook on the economy dips, so has approval for the president’s economic stewardship.

More than 6 in 10 – 63 percent – disapprove of Obama’s handling of the economy. Nearly half, or 48 percent, “strongly” disapproved. Approval of his economic performance now stands at just 36 percent, his worst approval rating on the issue in AP-GfK polling.

Among Democrats, 58 percent approve of the president’s handling of the economy, down from 65 percent in June. Among Republicans, approval dipped to 9 percent from 15 percent.

Just 51 percent consider Obama a strong leader, down from 60 percent in June and 65 percent following the capture and death of Osama bin Laden in May. In June, 85 percent of Democrats in the poll called him a strong leader. Now, the number is down to 76 percent.

Of course, there are limits to what a president can do.

“I think he can nudge it along, but really, it boils down to the private sector,” said Dan Elliott, 42, of Hillsboro, Ill., an independent who voted for Obama in 2008 and says he’ll probably vote for him again.

Judith Lee, 63, a retired teacher from Great Diamond Island, Maine, said she’s a Republican who voted for Obama in 2008 but has been disappointed by his leadership style.

“I don’t think he is a very forceful leader,” Lee said. “His style of leadership seems to be to look for consensus and ideas from other people, and it seems to have been ineffective. And Congress seems to be deadlocked on problems.”

Some 75 percent in the poll said the country is heading in the wrong direction, up from 63 percent in June. Among Democrats, 61 percent chose “wrong direction” – up from 46 percent in June.

And for the first time for Obama in the poll, a majority of all adults said they disapprove of his overall performance – 52 percent, up from 47 percent in June. Among Democrats, approval fell 8 points, to 74 percent from 82 percent in June. Among Republicans, it fell to 11 percent from 22 percent.

Politically, the poll underscores the difficult time ahead for Obama as he seeks re-election in a shaky economy.

Unemployment increased to 9.2 percent in July, up from 9.1 percent in June. And most economists don’t expect it to decline much below 8.5 percent by the November 2012 presidential election. No president has won re-election with a jobless rate that high since Franklin D. Roosevelt in 1936.

So why hasn’t the rise in pessimism taken more of a toll?

Despite the general rise in gloom, it seems unlikely that liberal Democrats will flock away from Obama even if they have rising doubts about his agenda or economic leadership, analysts suggest. And independents, who helped elect Obama in 2008 and are now being actively wooed by both parties, did not exhibit significant changes in their approval levels.

It was at 44 percent, statistically no different from the 43 percent approval rating among independents in June.

“A lot is out of his hands,” said Penny Johansen, 65, a retired legal secretary from Tempe, Ariz. “There is only so much one person can do, and one person cannot be blamed for the acts of others.” Politically unaligned, she voted for Obama in 2008 and says she’ll probably do so again.

On related economic issues, 59 percent said they disapproved of Obama’s handling of tax issues, up from 53 percent in June. And 64 percent said they disapproved of his handling of the annual budget deficit, compared with 63 percent in June.

Sixty percent described the financial situation in their own households as “good,” about even with the level in June. Asked if they expected their financial situation to change over the next 12 months, 31 percent said they expected it to get better, 12 percent expected it to get worse and a majority – 56 percent – said they expected it to “stay about the same.”

As to creating jobs, some 44 percent said they would trust Democrats to do a better job, while 42 percent said Republicans would.

The AP-GfK poll was conducted Aug. 18-22 by GfK Roper Public Affairs and Corporate Communications. It involved landline and cellphone interviews with 1,000 adults nationwide and has a margin of sampling error of plus or minus 4.1 percentage points.

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Today the economy has 5 percent fewer jobs, and the unemployment rate has almost doubled since the onset of the last recession.

The NewYorkTimes.com reports:

“It would be disastrous if we entered into a recession at this stage, given that we haven’t yet made up for the last recession,” said Conrad DeQuadros, senior economist at RDQ Economics.

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‎

A housing market that has 1 out of 4 owing more than what their house is worth, with millions who are at least 90 days late on paying their mortgage; record levels of foreclosure; banks afraid to give loans to individuals and businesses for fear of default; and an employment market that has over 1 of 5 in this country either out of work or working part time just to make ends meet, are just a few of the economic problems faced by many in this country.

NewsOne and I are concerned about the economic destinies and know that it is almost impossible for taxpayers to stay afloat without an organized financial strategy. This is why we have launched a series of posts and webisodes, sponsored by Toyota, to make sure that we are giving you tangible solutions to help you in navigating the financial obstacles presented in this volatile economy.

So take time to watch the videos, read the posts, leave comments, and send us messages about the issues that you would like to discuss.

This is your forum and opportunity to learn some valuable information and we want to be sure you get the most out each entry. I look forward to talking to you each week as we continue to rebuild this country and lead the way to an economic recovery through the teaching and implementing of fiscal responsibility!

Ryan Mack, Author of Living in the Village and President of Optimum Capital Management, LLC

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House Speaker John Boehner’s Budget Control Act of 2011 is the current plan that congress will soon vote on. It is estimated to raise the debt limit by $2.5 trillion, and will reduce the deficit by about $915 billion, according to its revised version.

Here’s a little break down of what cuts will be made to some social services:

Social Security Administration

• Benefits for SSI, Medicare and Medicaid would fall by $2.5 billion over the 2012-2016 period and by nearly $12 billion over the 2012-2021 period.

Health Care

• Benefit outlays for Medicare, Medicaid, and CHIP would fall by $1.4 billion over the 2012-2016 period and by about $3.7 billion over the 2012-2021 period.

Student Loans

• Eliminate the subsidized loan program for graduate students. Beginning July 1, 2012, the bill would eliminate the interest subsidy on subsidized student loans for almost all graduate students while a borrower is in school, in the post-school grace period, and during any authorized deferment period.
• Eliminate loan repayment incentives. Beginning July 1, 2012, the bill would terminate, with one exception, the Secretary of Education’s authority to make incentive payments to borrowers to encourage the on-time repayment of their federal loans.
• Cuts To Pell Grants. Significant cuts to student Pell Grants are also expected. Many college students rely heavily on Pell Grants to fund their higher education.

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Yahoo reports:

According to a new Quinnipiac poll, 54 percent of those surveyed say Bush is responsible for the “current condition” of the economy, compared to just 27 percent who blame Obama. Among self-described independent voters, a key 2012 voting bloc, the number shifts slightly: 49 percent point the finger at the former GOP president, while 24 percent blame Obama.

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Republicans said that after a heated disagreement with House Majority Leader Eric Cantor (R-Va.), the president “abruptly” walked out of the meeting.

Democratic lawmakers, however, said that Obama gave a lecture to Cantor and Republicans and left the meeting because it had ended, not because of anger.

Mr. Obama did have ardent words for Republican lawmakers, however.

“Would Ronald Reagan be sitting here? I’ve reached my limit. This may bring my presidency down, but I will not yield on this,” the president said just shortly before concluding the two-hour meeting.

The Federal Reserve chairman, Ben S. Bernanke, warned on Wednesday of a “huge financial calamity” if President Obama and the Republicans cannot agree on a budget deal that allows the federal debt ceiling to be increased.

The NYTimes Reports:

Representative Eric Cantor of Virginia, the House majority leader, said he raised the idea of taking what savings could be achieved now — roughly $1.4 trillion — and then having additional votes to raise the debt limit again before the elections in November 2012, with Republicans ultimately seeking a total of at least $2.4 trillion in cuts with no tax increases.

At this, Mr. Cantor said, the president “got very agitated, seemingly.” Mr. Cantor quoted the president as saying: “Eric, don’t call my bluff. I’m going to the American people with this.”

Then, Mr. Cantor said, “He shoved back and said, ‘I’ll see you tomorrow’ and walked out.”

Read More At NYTimes.com

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Gingrich’s comments come as the president is negotiating a new federal budget with Republicans, and just days after the latest job reports show few signs of economic recovery.

“Housing prices have dropped deeper than in the great depression and it’s very clear that under Obama’s job killing policies, we’re not going to get out of this deep unemployment.”

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Sen. Orrin Hatch (R-Utah) voted against the measure Thursday, demanding that poor middle-class Americans need to do more.

“I hear how they’re so caring for the poor and so forth,” Hatch said in remarks on the Senate floor Wednesday, in reference to Democrats. “The poor need jobs! And they also need to share some of the responsibility.”

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Additionally, the economy added only 18,000 jobs in June, with 14.1 million people out of work, a slight increase from the 13.9 million unemployed Americans reported in May.

Black unemployment stayed at 16.2 percent, which is the second highest rate since Obama took office. In August 2010, the Black unemployment rate was 16.3 percent.

The NY Times Reports:

The numbers showed the continuing challenges of adding jobs to the economy even at a rate that keeps pace with population growth, two years after the official end of the longest economic downturn since the Great Depression.

Friday’s report showed that 39,000 government jobs were cut in June. The previous month, 28,000 local government and 2,000 state jobs were cut, as states and towns dealt with tighter budgets.

Read More At NYTimes.com

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The Clinton Global Initiative America Jobs Summit’s goal is to share the best ideas and brainstorm new ones, so that individuals, cities, states, and companies can help grow the economy, despite strains in Washington.

The summit was streamed live on the CGI’s website.

Read More At TheDailyBeast.com

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The stuttering and stammering when it comes to discussing this economy is making the president and his party look like some of the most confused individuals you have ever seen. When the May job numbers came out, they call it a bump in the road. If the economic news is not moving as fast as analysts and commentators like, they revert to blaming President George W. Bush’s porous stewardship of the economy in his final term. And when it is time to take ownership and accept the reality that it now boils down to them, they give that deer-in-headlights look.

Look, Mr. President, you wanted the job. Well, this comes with the job. If you do well, you get the praise, such as with the killing of Osama bin Laden (unless you bother to listen to a lot of your conservative media haters, who couldn’t even bring themselves to giving you credit). But when things aren’t going so well, such as our sluggish economy, you’re going to take the hit. So deal with it.

That’s why it was refreshing to see Rep. Debbie Wasserman Schultz (D-Fla.), and chairwoman of the Democratic National Committee, make a forceful statement last week that her party owns this economy.

“We own the economy,” she said. “We own the beginning of the turnaround, and we want to make sure that we continue that pace of recovery.”

Republicans reacted with glee to seeing a top Dem accept responsibility for the economy. They feel that it will be a yoke around the Democrats’ necks come the 2012 election.

That feeling is perfectly understandable, but not entirely a negative thing.

For anyone to suggest that today’s economy is worse than what we experienced in 2008 has to be nuts. It was stunning and debilitating to see a monthly jobs report that showed hundreds of thousands of jobs lost every month. By the end of the year, we had lost 2.6 million jobs. Yes, 2.6 million. My CNN buddy, Ali Velshi, was Mr. Doom with his daily reports on the stock market. Our nation was in a panic, and no one knew where to go and what to do.

Yet today, we have seen 25 consecutive months of private sector job growth. Have they been small? Of course! But I sure as hell would rather see the gaining of 30,000 and 50,000 or 100,000 jobs a month then to see us losing 584,000, like we did in December 2008. The issue is that economists say we need closer to 300,000 new jobs per month to get back to normal.

Well, it’s time for President Obama to stand up and say this is the new normal.

So, we better get used to it.

Federal Reserve Chairman Ben Bernanke has said repeatedly that it may be several years before unemployment falls below 7 percent. He said to expect slow growth. It’s time for our political leaders to stop lying to us, thinking we are going to return to the fast lane days. They need to make it clear that we’re driving in the school zone today.

Folks, we’ve been so used to riding high on the hog with our inflated economy that we don’t know what to do when it comes to reality. We lived through years of BS Internet companies, exploding off the pages with nonsensical valuations based on crack-like highs. And when the high wore off, we saw that we were in worse shape.

We’ve lived so far above our means with credit cards, a crazy homeownership market and outlandish spending habits that now we are paying the consequences for our actions.

So President Obama needs to make it clear: Our economy is slowly getting better, and we might as well accept the reality that we are not going to sprint our way out of this recovery. This will be a marathon.

Yes, no one wants to hear that. We want to present our usual American optimism that isn’t based on reality. Just be straight with the public and don’t present a fictitious perspective on where we should be. This isn’t 1984, so stop saying what President Reagan did. We didn’t face a near meltdown of our financial system, coupled with the massive job losses, and a housing disaster.

Dems should say, “Look, we came in with a mess, and we put the plan of action to work to get us out of the mess. Did some stuff work? Absolutely. Did some stuff not work? Sure did, and we’re fixing it.”

You say it with confidence and conviction, and you defend your policies, even when your critics are blasting you. Instead, we get a president and Democratic Party that twists and turns in the wind, hoping a voice of confusion will mollify the critics.

It won’t.

Yes, I’m grateful to have a job. But there is no guarantee I will keep it. So I’m saving my money, got all of my debts paid off, and hoping to ride this economy out like the three hurricanes I’ve lived through. It’s going to be a rough period for some time. I know it, we feel it, so let’s get used to it.

President Obama and the Democratic Party, no matter what you say or do, you’ll be judged on the economy. If you get thrown out of office in November 2012 because the American people think someone else can do better, fine. But there is nothing worse then getting booted from office when you weren’t even smart enough to go down fighting.

If President Obama and his administration, as well as his party, keep up their pitiful efforts in discussing this economy, go ahead and start drawing up plans for your library in Chicago. Because what they are doing now is embarrassing.

Roland S. Martin is an award-winning CNN analyst and the author of the book “The First: President Barack Obama’s Road to the White House as originally reported by Roland S. Martin.” Please visit his website at www.RolandSMartin.com. To find out more about Roland S. Martin and read his past columns, visit the Creators Syndicate Web page at www.creators.com.

COPYRIGHT 2011 CREATORS.COM

A new poll shows that 44 percent of Americans believe the economy is worse off under President Obama than when George Bush was in office.

The poll, conducted by Bloomberg, shows that the continuing lack of jobs available for the American public is causing alarming concern of the president’s economic direction.

In an ABC News/Washington Post poll released earlier this week, only one-third of Americans believe the country is headed in the right economic direction. Only 10 percent of Americans believe the unemployment rate will go under five percent in the next 2 years.

Unemployment is currently at 9.1 percent, while the African-American unemployment rate is at record highs slightly over 16 percent.

Read more at Huffington Post

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ALEXANDRIA, Va. — President Barack Obama says the growth of the U.S. economy will depend in part on training new workers for jobs in the manufacturing industry.

During a speech at a Northern Virginia Community College campus on Wednesday, Obama highlighted the expansion of an industry-led initiative to boost training programs.

The effort, Skills for America’s Future, links businesses with community colleges to help students gain the skills they will need in the emerging workplace. It also encourages workforce development strategies, job training programs and job placements.

Obama says the initiative could help prepare 500,000 community college students for careers in manufacturing.

“Right now, there are people across America with talents just waiting to be tapped, sparks waiting to be lit. Our job is to light them. And there’s no time to lose when we’ve got folks looking for work, when we’ve got companies that need to stay competitive in this 21st-century economy,” he said.

The president’s remarks come a week after recent economic indicators showing that manufacturers cut 5,000 jobs in May, the first loss in that sector in seven months. The unemployment rate also ticked up to 9.1 percent.

Before Obama’s remarks, he toured the college’s Automotive Training Program including a General Motors Automotive Services classroom and a lab with hybrid vehicles.

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Just ahead of the government’s monthly jobs report for May, investors got a disappointing look at the trend in hiring over the last few weeks. The monthly report from ADP Employer Services, the payroll processing firm, said that private employers added 38,000 jobs in May, lower than expectations and the smallest increase since September 2010.

Economists said that the figure in the ADP survey, far less than the 175,000 jobs that had been forecast, could have been a reflection of severe storms in many parts of the country that month, while automobile manufacturers have temporarily laid off workers in response to a disruption in supply chains. Economists from Capital Economics Ltd. said in a research note that the dip also reflected a slowdown in the growth in the service sector.

Worried investors are funneling their funds into bonds, a much safer investment vehicle, illustrating a lack of faith in the much-touted economic recovery.

Read the rest on The New York Times.

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Blacks in the survey reported feeling less stress from the economic situation than whites or Hispanics. Fifty-six percent said the current economic situation has not been a cause of stress for them while 56 percent of whites and 58 percent of Hispanics says it has.

Whites had a distinctly more negative view of President Obama’s economic program than blacks or Hispanics. Eighteen percent of whites said Obama’s policies had improved the economy, 36 percent said they had made it worse, 39 percent said they had no effect and 6 percent offered no opinion.

Read more at  Daily Beast

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ILLINOIS — Some Chicagoans are heading to the suburbs to fill up their tanks, as gas prices continue to climb in the city limits.

According to the latest Lundberg Survey of fuel prices, Chicago has the highest gas prices in the country. While the average price of gas reportedly rose by 12 cents in the past two weeks, Chicago is well above the national average–paying about $4.27 per gallon.

Many Chicagoans are paying more than that, however. Chicagogasprices.com reports that a Northwest Side BP station is charging $4.69 per regular gallon, and prices remain in the $4.30-$4.50 range throughout much of the city.

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“That’s why I’m only putting 10-bucks in here and then going up to the suburbs in Lake County and put the rest, that’s my plan right now,” Chicagoan Mark Jacobsen told Fox Chicago.

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Prices in the suburbs range from $4.07 per gallon at the Costco station in Melrose Park to the $4.20 range in some southwest suburbs, according to Chicagogasprices.com.

President Obama discussed the issue of high gas prices in his weekly address, and told donors in Los Angeles that prices at the pump have quite an impact on his polling numbers.

“These gas prices are killing you right now,” Obama said at Facebook headquarters in Palo Alto, acknowledging that many Americans can’t afford new fuel-efficient cars and must drive older models.. For some, he said, the cost of a fill-up has all but erased the benefit of the payroll tax holiday that he and congressional Republicans agreed on last December.

Illinois Sen. Mark Kirk pitched some ideas for alleviating pain at the pump in Illinois last week. He said exploring natural gas supplies, speeding up the offshore drilling permit process in the Gulf of Mexico and easing federal regulation would bring down prices quickly.

“If the market saw Congress moving in this bipartisan direction, it would see larger supplies in the future and that would directly affect the futures market. The price of gasoline right now is artificially high because the markets see a constriction of supply,” Kirk said, according to WBEZ.

The Associated Press reports that the latest Lundberg Survey puts the average price for a gallon of regular gas at $3.88, as of April 22. The national average for a gallon of mid-grade is $4.02, and $4.13 a gallon for premium.

Roland Martin and the Washington Watch roundtable discuss the budget battle on Capitol Hill. Are the proposed GOP budget cuts about helping the economy, lowering the deficit or is it simply ideology? Will the Republican budget cuts ultimately hurt the economy?

WATCH:

Roland Martin talk with Harold Lewis a franchisee and a member of the BMOA (Black McDonald’s Operators Association) about McDonald’s announcement to fill 50,000 jobs on April 19th, 2011. According to Lewis McDonald’s hopes to fill a wide variety of positions ranging from entry level to management and corporate positions.

LISTEN:

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Even so, the survey highlights a central challenge Obama will face in his campaign for re-election. The president will have to convince a lot of voters who are still feeling financial hardship that things are getting better.

Obama’s approval ratings have held steady at around 50 percent over the past month. But the disconnect between negative perceptions of the economy and signs that a rebound are under way could provide an opening for Republicans at the outset of the 2012 campaign.

In the survey, just a sliver of Americans – 15 percent – said they believed the economy had improved over the past month, compared with 30 percent who had thought that in January. Only a third were optimistic of better times ahead for the country, down from about half earlier this year. And 28 percent thought the economy would get worse, the largest slice of people who have expressed that sentiment since the question was first asked in December 2009.

“It’s in a poor state,” said Billy Shirley, 74, a Democrat from Commerce, Ga. “Everything’s going to the bad. Everyone’s spending more on gas, food, everything. The prices on everything are going up, and that’s hurting the nation.”

Recent economic indicators paint a more positive picture: The unemployment rate, though still high at 8.9 percent, has been declining, and consumer spending and personal income were both up last month. The gross domestic product was growing at an annual rate of 3.1 percent as last year ended.

Americans are acutely focused on their financial well-being, even as turmoil in the Middle East commands international attention. And the foreign unrest is directly affecting them by boosting oil prices. More Americans – 77 percent, up from 54 percent last fall – now say gas prices are highly important to them.

Obama’s job-performance ratings haven’t suffered as people’s attitudes about the economy have shifted over the past month.

Half still approve of how he’s doing his job, and half say he deserves to be re-elected. His rating on handling the economy was unchanged: 47 percent approved. In fact, twice as many people said Obama “understands the important issues the country will need to focus on during the next two years” as said that about Republicans in Congress.

That’s not to say that Obama is escaping responsibility for the economic situation.

Annale Iltis, 26, of Sarasota, Fla., faults big business, the federal government and, to a lesser extent, the president.

“I do a bit,” she said, “but at the same time he has good ideas. He just doesn’t have the backers in the House and the Senate to get them done.” The self-described independent voter, who supported Obama in 2008 and says she would do so next year, is concerned that deep budget cuts that Congress is considering will hurt the fragile economic recovery.

“It seems stable now but I fear it’s going to go downhill quickly,” she said.

Article continues after gallery:

Henry Kugeler, 49, of Chicago, likened the situation to the fable about the crawling tortoise that wins the race against the speedy hare, saying: “Right now, the country is the tortoise. I don’t think the economy is getting worse. The recovery that’s happening is real, but it’s incredibly slow.”

The Democrat doesn’t blame Obama or other politicians, saying: “They haven’t helped but I don’t know that they’ve hurt.”

Obama inherited an economy in recession. Republicans angling for the chance to challenge him next fall have been blaming him for the slow recovery and arguing they could do better. Presidential advisers are hopeful that the positive economic trends continue, giving Obama an opportunity to make the case for keeping him in office rather than risk an economic backslide.

As the slow-to-start GOP nomination fight starts in earnest this spring, the poll shows that candidates clearly have work to do.

More than or nearly half of Republicans surveyed say they don’t know enough about the following potential contenders to even express an opinion about them: Mississippi Gov. Haley Barbour, Indiana Gov. Mitch Daniels, former Utah Gov. Jon Huntsman, former Minnesota Gov. Tim Pawlenty, former Pennsylvania Sen. Rick Santorum and Minnesota Rep. Michele Bachmann.

Roughly two-thirds of Republicans expressed favorable views of former Arkansas Gov. Mike Huckabee and former Alaska Gov. Sarah Palin, while former House Speaker Newt Gingrich and former Massachusetts Gov. Mitt Romney got slightly lower marks.

Even though many of the candidates aren’t well-known, about half of Republicans say they are satisfied with their choices.

The poll comes just as Republicans and Democrats on Capitol Hill wrestle over the federal budget, and there could be a partial government shutdown without further action by Congress.

The Republican-controlled House has approved some $60 billion in spending cuts. The Democratic Senate is looking at $33 billion. Without agreement, some Republicans say they won’t approve funding to keep the government operating.

The issue of federal spending isn’t just something lawmakers talk about. It’s clearly weighing on the public.

Roughly half in the survey said they expected enormous federal budget deficits to cause a major economic crisis for the country for the next decade, and most said they worry that mounting federal debt will hamper the financial future of their children and grandchildren.

In the shorter term, people in the poll view everyone negatively when it comes to handling the deficit, but lawmakers get worse marks than the president. Only about a third of those surveyed approve of how Republicans and Democrats are dealing with the issue, while 41 percent approve of Obama on the matter.

People also are evenly divided on which party would best handle the deficit.

The Associated Press-GfK Poll was conducted March 24-28 by GfK Roper Public Affairs and Corporate Communications. It involved landline and cell phone interviews with 1,001 adults nationwide and had a margin of sampling error of plus or minus 4.2 percentage points.

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CNN Money’s Poppy Harlow joins Roland Martin on the Tom Joyner Morning Show to discuss comments made by the head of industrial conglomerate 3M (MMM, Fortune 500).

3M CEO George Buckley blasted the president as being “anti-business,” saying that the policies of this administration make business want to do business elsewhere.

DETROIT — As more U.S. buyers head back into auto dealerships, automakers are jostling for their attention with sweetened deals.

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The major automakers knocked a little extra off sticker prices in February, giving additional momentum to a recovery in sales that started last year. The good news for buyers is that discounts are likely to continue into the spring, as older models like the Toyota Corolla and Chevrolet Malibu duke it out with newer models like the Ford Focus and Hyundai Elantra.

“Sales rates are starting to exceed expectations. It’s an opportunity to grab sales from others if you’re aggressive enough and you have the right product,” said Jesse Toprak, vice president of industry analysis at auto pricing site TrueCar.com.

All the major car companies reported double-digit gains for last month. Improving economic conditions and consumer confidence could mean more gains in the months ahead.

But automakers’ results came on a day when oil again approached $100 per barrel on continued unrest in the Arab world. Rising oil prices could still put a damper on the industry’s recovery, GM CEO Dan Akerson cautioned on the sidelines of the Geneva Auto Show.

“I don’t think the industry learned a lot of lessons from 2008. They will this time around,” Akerson said of the 2008 spike in U.S. gas prices to above $4 per gallon, which rapidly changed buying habits.

So far, gas prices aren’t having much impact on buying decisions. At AutoNation Inc., the country’s largest dealership chain, customers are increasingly considering fuel prices when they decide what model to buy. But there are other factors, said President and Chief Operating Officer Mike Maroone. The company sees the “freak-out point” that changes people’s car-buying behavior at $4.25 to $4.50 per gallon, he said.

“We’re still a long ways from that,” he said. The nationwide average for a gallon of regular gas Tuesday was $3.375, according to AAA.

Auto sales rose 27 percent in February as the economic recovery continued and consumers felt more comfortable taking on a car payment. The strongest showing came from General Motors Co. and Toyota Motor Corp. with increases of more than 40 percent.

The monthly sales rate, when adjusted for seasonal differences and projected out for a full year, was 13.4 million vehicles. That would make it the highest rate since the government’s Cash for Clunkers rebates juiced sales in the summer of 2009.

Discounts are one reason for the impressive sales.

Automakers had largely been able to wean themselves off deals, which hurt their profits, since the industry ran into financial trouble in 2009. But GM fell off the wagon in January, raising incentives by $400 per vehicle. Competitors followed in February, with Chrysler, Ford, Nissan and Toyota all increasing spending on incentives by 6 percent or more over the previous month, TrueCar estimated.

Chrysler Group offered zero-percent financing for 36 months on the new 200 sedan. GM offered $7,000 in dealer cash on the Cadillac DTS and STS sedans. Toyota put $4,000 on the hood of the 2010 Lexus HS hybrid.

Still, incentives are only part of the story.

“A $400 increase doesn’t drive these kinds of share gains and sales gains,” GM’s vice president of U.S. sales Don Johnson said.

Also in the mix is economic recovery, better auto loan availability, low interest rates, increasing consumer confidence and a return of leases, which were almost absent in February of last year because used-car values dropped so dramatically during the downturn. GM said 22 percent of its individual buyers were leasing in February, up from 15 percent in January.

“I would connect all the dots together,” said Paul Ballew, a former chief economist at GM who is now at insurance firm Nationwide.

Analysts don’t expect the incentive skirmish to reach a full-blown discount war. Detroit automakers have fewer factories and no longer have to offer huge amounts of cash on their cars and trucks to keep the plants going. GM, for instance, had average incentives of $4,750 per vehicle in March of 2009, its highest level in 10 years as it headed toward bankruptcy, according to Edmunds.com. Last month, incentives cost GM $3,849 per vehicle. Johnson said discounts should be lower as the year goes on.

Rising gas prices didn’t dampen Americans’ appetites for trucks and SUVs. GM said sales of its full-size pickup trucks rose 65 percent compared with February of last year, a sign that businesses are continuing to replace work trucks. Sales of Chrysler’s Ram truck brand rose 81 percent.

Crossovers like the Chevrolet Equinox — which saw sales jump 92 percent — also continued to be a force in the marketplace. Overall, GM saw a whopping 49 percent jump in sales compared with February of last year.

Toyota’s gain was similar, at nearly 42 percent. But sales in the comparable month were poor because of a string of highly publicized safety recalls. Toyota said it saw strong sales toward the end of the month as it launched its “Number One for a Reason” marketing campaign. The RAV4 crossover was up 85 percent, while the Camry — the top-selling car in the U.S. — was up 64 percent.

Ford’s 10 percent gain was the weakest among the major automakers. Ford said it cut low-profit sales to rental-car companies and didn’t resort to big incentives. One of its best performers was the new Ford Explorer, which saw sales more than double in the month.

“Consumers are going to place a value on each manufacturer’s product. Right now, they’re saying to us, with the incentives balancing out, we still want to be in a Ford,” said Ken Czubay, Ford’s vice president for U.S. sales.

Ford’s Lincoln luxury brand continued to struggle, with an 11 percent drop in sales. One car from Cadillac — the CTS — outsold all of Lincoln combined.

Other automakers reporting Tuesday:

— Chrysler said its sales rose 13 percent on strong sales of Ram trucks and the new Jeep Grand Cherokee.

— Nissan Motor Co. said its sales were up 32 percent. The Rogue small crossover was up 86 percent.

— Honda Motor Co. said sales were up 22 percent. The CR-V crossover saw a 61 percent gain, while the Fit subcompact was up 44 percent.

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“You saw joy back in the holiday season,” said Sherif Mityas, partner in the retail practice at A.T. Kearney.

A strong Christmas Eve rounded out a great season for retailers. The National Retail Federation predicts that holiday spending will reach $451.5 billion this year, up 3.3 percent over last year.

That would be the biggest increase since 2006, and the largest total since a record $452.8 billion in 2007. And a strong week after Christmas could make this shopping season the biggest of all time. Final figures won’t be available until next week.

The economy hasn’t drastically improved from last year. Unemployment is 9.8 percent, credit remains tight and the housing market is moribund. But recent economic reports suggest employers are laying off fewer workers, and businesses are ordering more computers and appliances. Shoppers are spending with more confidence.

“I was unemployed last year, so I’m feeling better,” said Hope Jackson, who was at Maryland’s Mall in Columbia on Friday morning. Jackson bought laptops and PlayStation 2 games for her three daughters earlier in the season but was at the mall on Christmas Eve to grab $50 shirts marked down to $12 at Aeropostale.

Much of the spending growth has been online, driven by more free shipping offers and convenience. So far this year, $36.4 billion has been spent online, a 15.4 increase over last year, according to MasterCard Advisors’ SpendingPulse.

Taubman Centers and Mall of America have reported strong sales in fashion, which were a hard sell last year. Jewelry sales sparkled throughout the season.

Stores expect solid profits because they didn’t have to resort to desperate, fire-sale discounts to move merchandise, analysts say.

Some shopping habits learned from the recession linger. One big lesson taught by the recession: using cash, not credit. Shoppers also hunted for deals, a trend that doesn’t seem to be going away anytime soon.

“You’re constantly looking for bargains. Anything at a bargain,” Danny Colon said as he walked into a Sears in Hialeah, Fla., on Friday.

Bargains will abound Sunday, when after-Christmas sales begin. The week after Christmas accounts for more than 15 percent of holiday spending, research firm ShopperTrak says. That business has become more important over the years as gift cards became more popular.

The key question is whether the shopping frenzy will continue beyond Jan. 1.

“There will be improvement over 2010, but there’s no reason to go crazy,” Mityas said. “We are happy about the holidays, but it will be a slow climb back to the heyday.”

Still, stores were encouraged by what they saw in the final stretch of the holiday season. Malls were packed.

Best Buy in Union Square in New York had about 300 people in the store Friday morning, said manager Amy Adoniz. And she said more than 100 online orders for e-book readers, laptops and other gizmos were coming in every hour for store pickup.

“People are in the holiday spirit. They’re feeling more at ease,” she said.

Even pets made it back onto gift lists this year. Three Dog Bakery is a pet-supply chain whose specialties include $15.99 jars of banana-nut dog cookies and $65 dog coats. Its Clinton Township, Mich., location, which opened three years ago at the start of the recession, reported its biggest day ever Wednesday.

“We opened at the worst possible time in the world. Everyone was pulling back,” said Chad Konzen, who owns the store. “Gourmet all-natural dog treats are not a necessity – a luxury. But now people are feeling more comfortable. You can only be thrifty for so long.”

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The latest data confirm that the economy is improving, even though too few jobs are being created to lower the 9.8 percent unemployment rate.

The number of people seeking unemployment benefits edged down by 3,000 to a seasonally adjusted 420,000, the Labor Department said Thursday. That was the second drop in three weeks.

Weekly unemployment applications at around 425,000 signal modest job growth. But economists say applications would need to dip consistently to 375,000 or below to indicate a significant decline in unemployment. Weekly applications peaked during the recession at 651,000 in March 2009.

The four-week average, a less volatile measure, rose slightly to 426,000. The average had fallen for six straight weeks to the lowest level in more than two years.

Orders for long-lasting manufactured goods, excluding the volatile transportation category, rose by the most in eight months in November, the Commerce Department said. Factories saw demand increase for computers, appliances and heavy machinery.

Total orders for durable goods dropped 1.3 percent, the Commerce Department reported Thursday. That decline reflected sagging demand for aircraft and autos. But excluding transportation, orders rose 2.4 percent, the best showing since last March.

Personal spending rose modestly last month, giving the economy a lift before the holidays. Spending increased 0.4 percent in November, the fifth straight monthly increase.

Consumers’ incomes grew 0.3 percent last month, lifted by gains in stock portfolios. Wages and salaries barely budged. Hiring slowed to a crawl in November and paychecks got thinner.

Housing remains a drag on the economy. More people purchased new homes in November, though not enough to signal better times are ahead for the battered housing industry. Sales rose 5.5 percent to a seasonally adjusted annual rate of 290,000 units, the Commerce Department said. That’s less than half the rate that economists consider healthy. And the increase follows a dismal October sales pace that nearly matched the lowest level in 47 years.

The economy is expected to pick up next year as consumers spend more freely. But growth probably won’t be fast enough to rapidly reduce unemployment. Most Americans will have more cash to spend because of a cut in Social Security taxes, which was approved by Congress earlier this month.

Many analysts are predicting that the economy will grow at a 3.5 percent to 4 percent annual pace next year. That would be up from an expected 2.8 percent pace this year.

Still, by one estimate, the economy needs to grow by 5 percent for a full year to bring down the unemployment rate by one percentage point. Many economists expect the unemployment rate to be near 9 percent by the end of next year.

The recent decline in the number of people seeking unemployment benefits has encouraged economists. Applications have fallen by more than 20,000 in the past month. That should translate into more hiring in December than the previous month, according to most economists. The economy added a net total of only 39,000 jobs in November and the unemployment rate rose to 9.8 percent.

Weekly applications are a real-time snapshot of the job market. If they continue to move down, hiring is more likely to pick up. Applications reflect the level of layoffs but can also indicate whether companies are willing to add workers.

Fewer people are receiving unemployment benefits. The total unemployment benefits rolls dropped by 103,000 to little more than 4 million in the week ending Dec. 11, the department said.

That doesn’t include millions of additional laid-off workers who are receiving emergency aid under extended unemployment benefits programs set up during the recession. About 4.7 million people are receiving extended benefits for up to 99 weeks. All told, about 8.9 million people obtained unemployment benefits during the week of Dec. 4, the latest data available. That was about 150,000 fewer people than the previous week.

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His departure would leave Treasury Secretary Timothy Geithner as the only member of President Barack Obama’s original top-tier economic team. Summers, 55, and the president have discussed his future plans, according to one person.

Read more at Bloomberg

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New applications for unemployment insurance reached the half-million mark last week for the first time since November, a sign that employers are likely cutting jobs again as the economy slows.

The Labor Department said Thursday that initial claims for jobless benefits rose by 12,000 last week to 500,000, the fourth increase in the past five weeks. Wall Street economists forecast that claims would drop.

The four-week average, a less volatile measure, rose by 8,000 to 482,500, the highest since December. There were no special factors that distorted the numbers, a Labor Department analyst said.

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The increase suggests the economy is creating even fewer jobs than in the first half of this year, when private employers added an average of about 100,000 jobs per month. That’s barely enough to keep the unemployment rate from rising. The jobless rate has been stuck at 9.5 percent for two months.

Stock futures fell on the news. The Dow Jones industrial average futures had risen more than 50 points before the report was released. They dropped quickly and were down as much as 20 points afterward.

Jobless claims declined steadily last year from a peak of 651,000 in March 2009 as the economy recovered from the worst downturn since the 1930s. After flattening out earlier this year claims have begun to grow again.

The number of people continuing to receive benefits fell by 13,000 to 4.5 million, the department said. The continuing claims data lags initial claims by one week.

But that doesn’t include millions of people receiving extended unemployment insurance, paid for by the federal government. About 5.6 million unemployed workers were on the extended unemployment benefit rolls, as of the week ending July 31, the latest data available. That’s an increase of about 300,000 from the previous week.

During the recession, Congress added up to 73 extra weeks of benefits on top of the 26 weeks customarily provided by the states. The number of people on the extended rolls has increased sharply in recent weeks after Congress renewed the extended program last month. It had expired in June.

RELATED: Black Female Unemployment Has Steepest Decline In May

Private employers added only 71,000 jobs in July. But that increase was offset by the loss of 202,000 government jobs, including 143,000 temporary census positions.

July marked the third straight month that the private sector hired cautiously. Economists are concerned that the unemployment rate will start rising again because overall economic growth has weakened significantly since the start of the year.

In a healthy economy, jobless claims usually drop below 400,000. But the recent increases in claims provide further evidence that the economy has slowed and could slip back into a recession. Many analysts are worried that economic growth will ebb further in the second half of this year.

After growing at a 3.7 percent annual rate in the first quarter, the economy’s growth slowed to 2.4 percent in the April-to-June period. Some economists forecast it will drop to as low as 1.5 percent in the second half of this year.

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EDISON, N.J. (AP) — President Barack Obama on Wednesday cast his latest economic pitch as a matter of patriotism, urging the Senate to ditch its partisan mode at least long enough to pass a package of tax cuts and loan relief for small businesses. “This is as American as apple pie,” the president said.

On his way to his own political activity — two high-dollar fundraisers for Democrats — Obama sought his own classic American setting. He ate a meat-stacked sandwich and then spoke at the Tastee Sub Shop, a tiny one-story building meant to serve as the essence of the American small business.

In Washington, Senate Majority Leader Harry Reid was hoping to schedule a Senate vote on the small business bill for Wednesday evening, though he would need Republican support for a vote that soon. Republican leaders said they would like the opportunity to offer amendments to the measure.

“Surely, Democrats and Republicans ought to be able to agree on this bill,” Obama said despite the consistent lack of any such consensus on Capitol Hill. Obama said he told Republican leaders at the White House a day earlier that key elements of the bill are ones that the GOP has supported for years.

“Helping small businesses, cutting taxes, making credit available,” Obama said from a presidential lectern that had been brought into the restaurant. “This is as American as apple pie. Small businesses are the backbone of our economy. They are central to our identity as a nation. They are going to lead this recovery.”

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The bill in question is designed to help small businesses get the capital they need to buy equipment, hire workers and expand their operations. Obama took the opportunity to recite the stories of local business owners and tout his efforts to help them before acknowledging that more government help is needed.

A short time earlier, Obama stepped up to the counter and ordered a “Super Sub,” which is packed with a variety of sandwich meats. The president begged off on getting the 12-inch version, noting that he is about to turn 49 and needs to go for a sandwich one-half the size.

The business message was but a stop on Obama’s broader mission on Wednesday. He was stepping up his fundraising efforts as the midterm elections draw closer and Democrats need money to battle a Republican Party energized in part by voter concern over government spending and regulations.

In New York, Obama was to tape an interview on the daytime talk show “The View” that will air on Thursday. And then he was attending fundraisers for the Democratic National Committee.

Asked about the image of Obama’s attending ritzy fundraisers while much of the country is still struggling with the recession, White House spokesman Bill Burton said: “Obviously we’re focused on the economy today. This evening the president is doing what the president traditionally does, which is helping to raise money for the campaign season as things approach.”

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Overall, Obama is headlining four Democratic fundraisers in three days and hosting another four events next week. For now he’s playing it safe, appearing at events in noncompetitive states or in a friendly if competitive place, his home state of Illinois.

White House officials say Obama will campaign vigorously throughout the nation ahead of the fall elections. At stake is control of the House and Senate.

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FROM AOLNews.com:

Middle-class black Americans dipped into their retirement accounts to stay afloat during the recession at a higher rate than their white counterparts did, broadening the “retirement gap” between whites and African-Americans, according to a new study.

Nearly half of all blacks making at least $50,000 a year dipped into savings and retirement accounts over the past two years, compared with 31 percent of whites, according to the 2010 Black Investor Survey commissioned by Ariel Investments.

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SAN FRANCISCO – A new study says legalizing the recreational use of marijuana in California could sharply drive down prices for the drug and possibly undercut the tax windfall that supporters have touted.

The study published Wednesday by the RAND Drug Policy Research Center says “considerable uncertainty” surrounds the state ballot initiative. It would allow adults, 21 and over, to possess an ounce of marijuana and cities and counties to license and tax commercial pot sales.

The authors predict that retail marijuana prices could drop from $375 an ounce under the state’s current medical marijuana law to as low as $38 per ounce.

According to the RAND analysis, consumers would pay more than that — about $91 an ounce — once taxes imposed by local governments are figured in. That is a 76% drop in price.

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From Mashable.com:

YouTube is an often overlooked tool for business, not only as an engagement and marketing platform, but as an educational resource. There are YouTube channels dedicated to sound business advice, but distilling them from oceans of video junk can be a daunting task.

We’ve pulled out five subscription-worthy channels that produce regular, valuable content, and whose viewerships are already substantial. Adding these to your daily diet of social business resources is another great way to stay on top of trends and gather up new ideas for your business.

RELATED: Top 6 Traits Of A Successful Small Business Owner

1. Harvard Business Publishing
At over 17,000 subscribers, Harvard Business School’s YouTube channel produces regular “ideacasts” with a focus on “practical insights, tools and resources.” The show offers interviews with prominent Harvard professors, authors, and business leaders who speak to issues in markets large and small.

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RELATED: Small Business Owner Lends Helping Hand To South African Winemakers

2. Google Business
Make no mistake, the Google Business YouTube channel is a promotional tool for Google’s products. But there’s no sales pitch here — just really valuable insights on how to use many of the free and low-cost platforms offered by the search giant. Looking to optimize your AdWords campaign or glean a better view of the marketplace through search analysis? Stacks of short, well-produced instructional videos are at your fingertips with a subscription here.

RELATED: OPINION: Why Obama’s Small Business Plan May Fail

3. U.S. Small Business Administration
Of all the places to find valuable resources online, you may not immediately think of the U.S. Government. But the Small Business Administration has done a good job stocking their YouTube channel with important information about government initiatives, government loans, legislative changes, and general small business advice about technology and marketing.

Click here to read complete list.

RACINE, Wisconsin (AP) — President Barack Obama on Wednesday lashed out at Republicans as out of touch with the daily problems of Americans, hoping to sharpen the contrast with the opposition party as midterm elections loom and economic anxiety still runs high.

Speaking to a town hall in his latest getaway from Washington, Obama reveled in what the Democratic Party sees as two recent political gaffes by Republicans — one House lawmaker’s apology to BP oil and another’s characterization of the nation’s financial collapse as an “ant.”

More broadly, Obama said of Republicans: “Their prescription for every challenge is pretty much the same — and I don’t think I’m exaggerating here: basically cut taxes for the wealthy, cut rules for corporations and cut working folks loose to fend for themselves.”

Yet it is Obama and Democrats, as the party in power, who stand to take the most heat from the public concern about swelling government spending. The president jumped on a chance in the town hall to defend the rescue efforts for the auto companies and the big banks and to embrace the frustration about them.

“How do we get government spending under control?” he asked, giving voice to public complaints. “That’s a legitimate question. And whether you’re a Democrat, an independent or a Republican, all of us should be worried about the fact that we have been running the credit card in the name of future generations. And somebody’s going to have pay that back.”

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RELATED: Black GOP Candidate Calls Obama “Buckwheat”

Obama said the main culprit was not the costly emergency measures under his watch but a structural habit of the government spending more than it takes in. He said the answer is to reduce spending in a “gradual way” that doesn’t hurt people.

Obama spoke in Racine, south of Milwaukee, where the jobless rate stands at a troubling 14.2 percent, well above the national average.

Visit msnbc.com for breaking news, world news, and news about the economy

The stop in Wisconsin, a state Obama won in 2008, was ostensibly intended to allow the president to hear from residents in a format he favors. But with his economic leadership in deep question and national unemployment persistently near 10 percent, Obama seized a chance to defend his vision with gusto.

With the country fatigued by bailouts and worried about federal debt, Obama tried to remind people that, in his view, it was a hands-off government attitude that helped cause the problems he inherited. He said he did not want big government, but rather a “responsible government” that is on the side of the people.

“We’ve tried the other’s sides theories,” Obama said. “We know what their ideas are. We know where they led us.”

RELATED: Roland Martin Says It’s Time For Obama To “Go Gangsta” On GOP

Ticking off his grievances, Obama called out some Republicans for opposing a pending extension of unemployment benefits; a measure to raise the liability that must be paid by companies that cause environmental disasters; and a massive Wall Street reform bill.

Responding to House Minority Leader John Boehner’s gripe that the financial bill amounts to “killing an ant with a nuclear weapon,” Obama challenged Boehner to explain that to the people of Racine. The president also seized on Republican Rep. Joe Barton’s apology to BP — Barton later apologized for the apology — over the $20 billion victims’ compensation fund Obama pressured BP to establish. The president scoffed at Barton, the top Republican on the energy committee.

“Did you all read about that?” Obama said. “He apologized to BP that we had made them set up this fund — called it a tragedy that we had made them pay for the destruction that they’ve caused. … I mean, the tragedy is what the people of the Gulf are going through right now. That’s the tragedy.”

Once the audience got involved, Obama fielded questions about help for struggling homeowners, support for the military, the costly economic stimulus law and more.

The president seemed to enjoy the moment. And earlier, on his way into town, Obama found a different slice of happiness — at a pastry shop.

He made a surprise detour to O&H Danish Bakery, purveyor of a delicacy called a kringle — a large round flat pastry with a hole in the middle. He ordered one pecan and one cherry. A saleswoman recommended the cheese as well, so he said, “Let’s get a third!”

RELATED: Gov. Deval Patrick: GOP Borders On “Sedition”