• Research
  • Strategic Europe
  • About
  • Experts
Carnegie Europe logoCarnegie lettermark logo
EUUkraine
  • Donate
{
  "authors": [
    "John Judis"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "",
  "programs": [],
  "projects": [],
  "regions": [
    "North America",
    "United States"
  ],
  "topics": [
    "Political Reform",
    "Economy"
  ]
}

Source: Getty

In The Media

President Obama’s Jobs Wake-Up Call

The United States is headed into a political and economic cul-de-sac. Obama needs to make clear to the country that budget cuts are threatening the recovery.

Link Copied
By John Judis
Published on Apr 5, 2013

Source: New Republic

The country is headed into a political and economic cul-de-sac. It’s mostly the fault of the House Republicans, who insist on policies that undermine the recovery, but it’s also the fault of the Obama administration for failing to dramatize the choices that Americans face.

The recovery’s stalling was made only more evident from the employment figures released Friday. Don’t pay attention to the official unemployment rate, which fell from 7.7 to 7.6 percent, largely because more Americans who were out of work stopped looking for jobs and weren’t counted among the unemployed. If you look at the labor participation rate from 1984 to the present, it fell to an all-time low of 63.3 percent last month.

I’ve written at length about why I think the recovery has faltered.  In the Great Recession, like the Great Depression of the 1930s, the accumulation of debt has held down the recovery in the private sector. In addition to that, the introduction of automation has held down employment even among businesses that are expanding their output. The only way to create and preserve jobs, while the private economy is sloughing off its backlog of debt, is through government spending—which creates jobs directly or subsidizes private sector jobs in fields like health care. But the Obama administration and Congressional Democrats have acceded to the demands of Congressional Republicans to cut government spending. After increasing in 2009, government spending as a percentage of gross domestic product has fallen each year. That has created a drag on job creation.

The Obama administration and Congressional Democrats need to do something about this.  It’s more important than gun control or immigration.  If the economy is allowed to stall, it’s likely that the party in power—the Democrats—will suffer, as they did in 2010. And if the current Republicans can keep the House and, perhaps, win back the Senate, they’ll be in a position to do even more damage to the economy and to undo whatever advances the Democrats think they have won on gun control and other social issues.

The economy is fundamental. Obama seemed to understand this after the awful fiasco in the summer of 2011 when he caved during the battle over the debt ceiling. He won re-election by carrying the fight over spending cuts and taxes on the wealthy to the Republicans. After the election, he forced the Republicans to agree to tax increases on the wealthy. But the President appears to have let down his guard. He is not focused on the economy and hasn’t been for weeks. If you look at what he was doing this week, he spent Wednesday promoting gun control in Denver and Thursday championing climate control in San Francisco. And Friday—in the wake of stories that the sequester is denying cancer patients their treatments under Medicare—he is said to be contemplating a budget that cuts Medicare and Social Security. That’s just plain wrong—morally and politically.

When Obama takes an issue to the country, as he did financial reform in the spring of 2010, or as he did during the debate over the fiscal cliff, conservative Republicans complain vociferously that he is degrading the office of the president—forgetting, of course, that Ronald Reagan and George W. Bush campaigned energetically for their policies. And lo and behold, the pressure works. Obama needs to get back out there and fight the budget battle. He has to make clear to the country that the cuts are threatening the recovery, and he has to make clear that what Republicans want to do is make further cuts to Medicare and Social Security. These are popular programs. These are not Solyndra or the Post Office. Obama can win this fight, but he has to get out of the White House and carry it on.

This article was originally published in New Republic.

About the Author

John Judis

Former Visiting Scholar

As a visiting scholar at Carnegie, Judis wrote The Folly of Empire: What George W. Bush Could Learn from Theodore Roosevelt and Woodrow Wilson.

    Recent Work

  • In The Media
    This Election Could be the Birth of a Trump-Sanders Constituency

      John Judis

  • In The Media
    Policy Chops

      John Judis

John Judis
Former Visiting Scholar
John Judis
Political ReformEconomyNorth AmericaUnited States

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Europe

  • Ukraine Russia Black Sea Food
    Commentary
    Strategic Europe
    A Black Sea Truce Is About Global Food Security, Too

    A summer of escalation in the Black Sea has hurt Ukraine economically and is exacerbating world food security. A truce is needed—as is a broader reframing of Europe’s Ukraine strategy.

      Thomas de Waal

  • Commentary
    Strategic Europe
    The Speech Ursula von der Leyen Can’t Deliver

    European Commission President Ursula von der Leyen is about to give her annual address on the state of the EU. Here’s what she won’t—but should—say.

      • Rym Momtaz

      Rym Momtaz

  • Le Pen France Far Right
    Article
    How Europe’s 2027 Elections Could Test EU Governance

    Radical-right parties are expected to do well in upcoming elections in four of the EU's biggest member states. If successful, they could prevent the union from addressing key challenges ahead.

      Stefan Lehne

  • Carney Canada EU Trump
    Commentary
    Strategic Europe
    Taking the Pulse: Is Canada Leading a Third Way?

    Canadian Prime Minister Mark Carney has twice inspired praise for standing up to U.S. President Donald Trump: at the 2026 World Economic Forum in Davos and on Canada-U.S. trade negotiations. Is Carney showing a third way better than the EU has in dealing with the Trump administration?

      • Rym Momtaz

      Rym Momtaz, ed.

  • Pituffik base greenland US Denmark
    Article
    Europe’s Overseas Countries and Territories as Geopolitical Assets

    European states control several Overseas Countries and Territories around the world that carry strategic, economic, and environmental weight. As great powers challenge the rules-based order, defending them is a geopolitical imperative for Europe.

      Marc Pierini

Get more news and analysis from
Carnegie Europe
Carnegie Europe logo, white
Rue du Congrès, 151000 Brussels, Belgium
  • Research
  • Strategic Europe
  • About
  • Experts
  • Projects
  • Events
  • Contact
  • Careers
  • Privacy
  • For Media
  • Gender Equality Plan
Get more news and analysis from
Carnegie Europe
© 2026 Carnegie Endowment for International Peace. All rights reserved.