American Morning

Tune in at 6am Eastern for all the news you need to start your day.
July 9th, 2009
07:05 AM ET

Economy could make Obama, Democrats vulnerable in 2010

[cnn-photo-caption image= caption="President Obama maintains that investing in key areas such as health care will help stabilize the economy."]

NEW YORK (CNN) - They are two presidents from different parties but have striking similarities

Former President Ronald Reagan and current President Obama are incredibly popular, and both faced rising unemployment early on.

Reagan's experience could be instructive for Democrats today; the GOP lost 26 seats in the 1982 elections. Reagan's popularity could not trump double-digit unemployment.

If we look back at 1982, as soon as the unemployment rate hit 10 percent, there was a political dynamic that changed significantly ... and it became much harder for the incumbent party to be able to make their case," said Daniel Clifton, head of policy research at Strategas, an investment strategy and policy research firm.

But Reagan was fighting joblessness, inflation and high interest rates. Obama has a full plate, but inflation and high interest rates are not on it.

Nonetheless, the jobless rate today is at 9.5 percent, which is above the peak of 8 percent the White House predicted earlier this year. The administration now concedes 10 percent is likely in the next couple of months.

While some economists have long forecast jobless rates this high, Vice President Joe Biden now admits that the administration "misread how bad the economy was."

Not exactly, according to the president.

Keep reading this story »

Filed under: Economy
soundoff (3 Responses)
  1. Bev - NYC

    Are people that naive to think a disaster 8 years in the making will be cured in one year? I guess we really are a fast food, I want it now people. The economy is not an entity you can turn on a dime and have it your way. I have friends who are out of work who will not accept jobs if they don't make equal or more than their prior salary, totally insane not to acept your new reality. I would accept whatever job I could get and wait for the market to turn around, but it's their life. These are the same people using their credit card like monopoly money and complain about the interest rates or buy homes they needed co-signers and roommates to afford. Let's worry about our personal economies and let the government worry about the country.

    July 9, 2009 at 12:05 pm |
  2. John

    Obama's failed economics policies will make the Dems velnerable in 2010. When the unemployment rate hits 11%, heads will roll.

    July 9, 2009 at 10:45 am |
  3. Larry

    Boehner, you can relax. You're going to get your pink slip in 2012.

    We've heard enough from you. Good time to update your resume.

    July 9, 2009 at 7:31 am |