Sunday, February 5, 2012

Review of the Week: Jan 29 - Feb 4


  • Obama receives Jobs Figures Boost
  • Romney makes big gains over struggling Gingrich
  • Democrats introduce "Buffet Rule" Legislation in Senate
  • Articles of the Week


Good US Jobs Figures for Obama
President Obama received encouraging news on jobs in the US, as the improved economic start to 2012 continued. Unemployment is now at its lowest rate since February 2009, just after Obama came to power, and currently stands at 8.3%. In the last month, 243,000 jobs were created in the private sector, the 23rd consecutive month that jobs have been created.
The news is good, but the overall picture remains poor and Republicans are attempting to capitalise on this. Frontrunner for the GOP nomination, Mitt Romney, said: "We welcome the fact that jobs were created and unemployment declined. Unfortunately, these numbers cannot hide the fact that President Obama's policies have prevented a true economic recovery."
The American public remain unconvinced by Obama’s record. According to Gallup, the President is still struggling to improve his approval figures. His approvals are holding steady at 45%, still below his disapprovals which currently stand at 48%. He will hope this good economic news will have an impact on his polling.

Romney makes big gains on Gingrich
Former Massachusetts Governor Mitt Romney recovered from his surprisingly heavy defeat in South Carolina to win the Florida primary and the Nevada caucus this week, reasserting himself as the front-runner in the on-going primary season and presumptive Republican nominee.
Romney’s victory in Florida by 14 points over closest rival Newt Gingrich was backed up by an even bigger in victory in Nevada, where he won by 18 points. These results helped him restore a national lead over Mr Gingrich, the former House Speaker. Having been trailing by a point last week, Romney now leads by 8. It was also a week where Mr Romney received the endorsement of Donald Trump. In fact, the only bump was when he “misspoke” in a comment where he said that he was “not concerned about the very poor”.
Newt Gingrich meanwhile is relying on more favourable results in southern, more conservative states in March. However, there is speculation that he may not last until then. He is now coming under fire for his relationships with the bailed-out housing market companies Fannie Mae and Freddie Mac.
Mr Gingrich received $1.6mn dollars in consultancy fees from Freddie Mac after he left Congress in 1999 and he has attempted to play down his links to the company which was at the heart of the sub-prime crisis of 2007-8. However, it is now emerging that his association with them went back farther than previously appreciated and the issue is fast becoming another millstone around Mr Gingrich’s neck, his campaign having already been hampered by his chequered personal history.

Senate Democrats introduce “Buffett Rule” Legislation
Democrats in the US Senate have introduced legislation to enforce the so-called “Buffett Rule” into the US Federal Tax Code. The proposed rule would ensure that people who earned $1mn a year from salaries or investments paid at least 30% in tax.
The rule, which has been adopted by President Obama and other Democrats, gained its name from the wealthy investor Warren Buffett, who expressed horror at the fact that he pays a lower rate of tax than his secretary. It ties into with the election issue of fairness in the tax system which was highlighted recently when Republican front-runner Mitt Romney released tax returns which revealed that he pays around 14% tax on earnings of over $50,000 a day.
Should the legislation pass the Senate, it will have a very hard time getting through the House of Representatives which has a comfortable Republican majority. The Republicans oppose the legislation saying that taxing investments will stifle the economy and impact jobs. Democrats dismiss this, saying that it is a tax code which takes from the fortunate few to help middle class families and the poor.

Articles of the Week
Amy Gardner in The Washington Post on the potential for a Romney-Paul strategic alliance

Upcoming Votes this Week
Tuesday 7th February: Colorado Republican Caucuses, Minnesota Republican Caucuses, Missouri Republican Primary

Saturday 11th February: Maine Republican Caucuses

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