Obama Looks to Exports, Hoping to Create Jobs

August 19th, 2010 at 07:00am Under Economy Report

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

This is the VOA Special English Economics Report.

The International Monetary Fund has raised its prediction for world economic growth to four and six-tenths percent this year. That is a half-percentage point higher than the estimate in April.

The IMF credited expansion in Asia and growing demand in the United States. But the lender’s chief economist also warned that “downside risks have risen sharply.”

President Obama talked this week about the importance of building exports as a way to create jobs and economic growth at home.

BARACK OBAMA: “American exports grew almost seventeen percent over the first four months of this year, compared to the same period last year. Part of this, of course, is due to the global recovery. But we are also moving forward on improving conditions for America’s exporters.”

Mr. Obama re-launched the President’s Export Council. The group includes business and labor leaders who will advise on trade issues.

Last week the government reported that private employers added only eighty-three thousand jobs in June. Unemployment remains high even after six months of job growth. As the president points out, there are still five unemployed workers for each job opening.

Export-related jobs, he said, pay fifteen percent more than average. In two thousand eight, American exports supported almost seven percent of all jobs, including one-third of jobs in manufacturing.

In January, in his State of the Union speech, President Obama promised to double exports in five years. In his comments Wednesday, he said the United States must work to remove trade barriers and open new markets.

BARACK OBAMA: “Ninety-five percent of the world’s customers and fastest-growing markets are beyond our borders. So if we want to find new growth streams, if we want to find new markets and new opportunity, we have got to compete for those new customers, because other nations are competing for those new customers.”

He said the United States offers some of the world’s lowest barriers to trade — and expects free and fair access to other countries in return.

In late June, the World Trade Organization ruled that Airbus received billions in illegal European aid. The ruling was a victory for its American competitor Boeing.

American lawmakers have also long complained that China suppresses the value of the yuan to lower the price of its exports. China recently promised to let the yuan trade more freely against the dollar.

China passed Germany to become the world’s top exporting country last year. The United States was third.

Some American companies have been doing well in developing markets. For the first time, General Motors has announced higher sales in China, the world’s largest car market, than in the United States.

And that’s the VOA Special English Economics Report, by Mario Ritter with Kent Klein. I’m Steve Ember.

By admin Add comment

Major Economies Caught in Debate Between Debt, Growth

August 13th, 2010 at 07:25am Under Economy Report

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

This is the VOA Special English Economics Report.

Concerns about a double-dip recession were back in the news this week. Some economists warned of the possibility of another downturn if governments withdraw growth measures too quickly. But others warned of the dangers of letting deficits and debts continue to grow.

Leaders of the world’s biggest economies agreed Sunday to cut their deficits by half or more by twenty thirteen. They also promised to try to reduce the size of their government debt in relation to their economy by twenty sixteen.

Western countries have not faced such high debt levels in sixty years. Leaders like President Obama, however, argue that the recession would have been much worse without the spending.

At the close of the Group of 20 Summit in Toronto, Canada, the president noted moves in Europe to cut government spending.

BARACK OBAMA: “A number of our European partners are making difficult decisions. But we must recognize that our fiscal health tomorrow will rest in no small measure on our ability to create jobs and growth today.”

In the United States, stocks have been falling since April on concerns about the recovery. This week a business research group reported a drop in consumer confidence after three months of gains. The Conference Board said more Americans believed business conditions were bad and that jobs were hard to get.

New jobless claims rose in the latest government report. Still, employment expert John Challenger says his findings suggest that the nation’s employers are not expecting a double-dip recession. He points to a big drop in the number of planned job cuts announced by employers over the past six months.

Even so, other reports showed big drops in housing sales in May. That followed the end of a homebuyer’s tax credit. This week, Congress voted to extend the credit to the end of September — but only for people who signed a deal by April thirtieth.

Also this week, the House of Representatives passed a major bill to rewrite financial rules and add consumer protections. The bill provides a way for the government to close failing banks.

President Obama had hoped to sign a final bill by July fourth, Independence Day. But the Senate has delayed action on its version of the financial reform bill until Congress returns July twelfth. Democrats agreed to remove a proposed fee on banks, in hopes of securing passage.

The vote was delayed in part because of the death of longtime Senator Robert Byrd, a Democrat from West Virginia.

And that’s the VOA Special English Economics Report. You can read and listen to our programs at voaspecialenglish.com. I’m Mario Ritter.

By admin 9 comments