Reelection rumblings for Obama
February 3, 2012 Recent economic reports could have the Obama White House worried. All of the reports suggest the pace of economic growth is still slow, and that unemployment could rise, and not fall, by the end of the year. To make matters worse for Obama, the reports come as his likely Republican opponent, Mitt Romney, gains strength from the drubbing he gave Newt Gingrich in the Florida primary on Tuesday.
To be sure, things aren’t all bad for the White House. Unemployment dropped all the way to 8.5 percent in December, a trajectory that recalls Ronald Reagan’s presidency. Reagan was the last U.S. president to face double-digit unemployment, but the high jobless rate fell dramatically in the final half of his first term. On Wednesday, stocks soared on a report from ADP that found private companies hired 170,000 people in January. Construction spending also rose, sending the Dow Jones up more than 100 points in the morning.
2012 has been a good year for markets so far, despite unease over Europe. Every major index reported strong gains in January, and the rally on Wednesday continued a good year. Improving 401(k) plans might put voters in more of a mood to give Obama four more years in November.
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http://thehill.com/blogs/on-the-money/801-economy/208171-reelection-rumblings-for-obama
