Obama Seeks Way Out of Jobs Gloom - Wall Street Journal

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[h=3]By LAURA MECKLER and CAROL E. LEE[/h]Trying to limit damage from a weak jobs report, the White House is pressing for bigger action from Congress and searching for ways to prod Europe to do more to pump up global economic activity.
But President Barack Obama has limited options to stimulate the economy because of resistance from both European leaders and congressional Republicans. So much of the Obama team's attention for now is focused on blaming the GOP for blocking actions, both in the past and present.
The Obama campaign is working to position the election as a choice between two men with contrasting economic philosophies, but a weaker economy increases the chances that voters will view the vote as a referendum on the incumbent. The jobs report Friday, which showed the U.S. economy added just 69,000 jobs in May, also could make it harder for Mr. Obama to keep Republican candidate Mitt Romney's record at the center of the race.
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With most polls showing a neck-and-neck race, it is unclear how the Obama efforts to paint Mr. Romney in a negative light are playing out among voters.
The campaign is attempting to highlight Mr. Romney's jobs record as governor of Massachusetts, arguing the state ranked poorly in job creation under his watch.
But in the wake of the weak jobs report, outsiders offered a few ideas. Jared Bernstein, a former White House economist who works at the left-leaning Center for Budget and Policy Priorities, said Sunday that Mr. Obama could shake up the race by proposing a new grand bargain with Republicans, this time aimed at preventing scheduled year-end tax increases and spending cuts.
"The question is, does the urgency of the economic moment, amplified by Friday's job report, lead the grown-ups in the room to take over?" said Mr. Bernstein, referring to politicians who would compromise on budget matters.
Obama strategists have long accepted that the economy won't be strong by November's election, but they have hoped it will be improved enough to make voters feel like the worst is behind them.
That was the case in 1984, when President Ronald Reagan stood for re-election with a 7.2% unemployment rate. Though that rate was historically high, it had steadily fallen since January 1984, when it stood at 8%, lending to a sense that the economy was on the mend.
At this point in the campaign calendar, Mr. Obama's political standing is stronger than it was for President George H.W. Bush, the most recent incumbent to lose re-election. In May 1992, 21% of the country approved of the job the elder Mr. Bush was doing in handling the economy, vs. 43% for Mr. Obama last month. And voters' feelings about Mr. Obama are about as warm as they were for the last two winners of re-election fights, Presidents Bill Clinton in 1996 and George W. Bush in 2004.
It wasn't clear Sunday what new domestic proposals, if any, by the White House were in the works. One key piece of pending legislation is a transportation bill, a major source of funding for highway, bridge and other infrastructure projects. That bill is stalled in Congress because of a dispute over construction of the Keystone XL oil pipeline. But the disappointing jobs report may put pressure on the White House to move away from its opposition to that project.
White House ideas face stiff headwinds across the board because of resistance from congressional Republicans to virtually all of the president's initiatives. Mr. Obama and his campaign are trying to focus blame for inaction on the GOP, but that effort poses its own risk because it may appear to some voters that the president is admitting he can't make things happen in Washington.
One pollster who has conducted extensive focus groups for Democrats running in competitive states told congressional Democrats in a private briefing last month that Mr. Obama's approval ratings aren't rising because, while voters blame Republicans for not getting things done on the economy, they aren't convinced Mr. Obama can change that.
Mr. Obama plans a campaign speech for later this month centered on the economy. It was conceived as an outline of his second-term vision, but its focus has not been set. It is possible he will introduce new economic ideas in it though economists said there is little the White House could do to boost the economy in a way that will be felt before Election Day.
Meanwhile, the Obama administration has stepped up its involvement in helping solve the euro-zone crisis, casting attention on the continuing drama in Europe. U.S. officials have increased their discussions with European officials, and Mr. Obama has kept in close contact with counterparts in Germany, France and Spain ahead of the Group of 20 summit later this month in Mexico.
"Obviously we are doing everything we can to keep Europe from having a crisis," a senior administration official said Sunday.
Write to Laura Meckler at [email protected] and Carol E. Lee at [email protected]

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