On Labor Day, Obama and Biden sound bullish on economy

Associated P_ress

WASHINGTON

Boosted by recent economic gains, President Barack Obama is sounding more bullish about the nation's recovery from the Great Recession and the White House is encouraging Democrats to show similar optimism as they head into the November mid-term elections.

Despite turmoil in the Middle East and along the Ukraine-Russia border, the top issue with Americans remains the economy. And while consumer confidence appears to be improving, the public remains anxious over the recovery's reach and sustainability.

On Monday, Obama scheduled a Labor Day speech in Milwaukee, Wisconsin, to promote the economy in a state that was the epicenter of a fight over the collective bargaining rights of public employees. He's also pressing the case for a federal increase in the minimum wage — a top issue for Democrats. Vice President Joe Biden took a similar Labor Day message to Detroit, telling hundreds of union members today they deserve a "fair share" of any improvement in corporate profits.

Until now, Obama and his aides had been cautious about drawing too much attention to positive economic trends, worried that some may prove illusory or that, even if true, not all Americans were benefiting from them.

White House aides still insist they are not declaring full victory over the lingering effects of a recession that ended five years ago.

But White House officials believe it is time to highlight recent improvements, in part to strengthen what is a difficult political environment for Democrats and to counter public perceptions that are eroding the president's public approval. Officials say Obama's most compelling case is to compare the economy now with what he inherited in 2009 in the aftermath of a near Wall Street meltdown.

"The one thing that I can say is that because of the incredible resilience and strength of the American people, but also because we made some good decisions even though they were tough at the time, we are better off as a country than we were when I came into office," Obama said at a fundraiser Friday.

In an August memo to House and Senate Democrats, Obama's top two economic advisers underscored the positive news: more than 200,000 jobs created per month for six consecutive months, a six-year high in auto sales, second-quarter economic growth that exceeded expectations and an expanding manufacturing sector.

Other positive signs:

— The unemployment rate stands at 6.2 percent, dropping 1.1 points over the past year. The rate reached a high of 10 percent in October of 2009.

— The economy grew at a rate of 4.2 percent in the second quarter of the year, though a weak start in the first quarter has lowered projections for the entire year.

— The stock market has rallied, nearly tripling in five years. The Standard & Poor's 500 index closed above 2,000 for the first time last week.