5 Questions: Obama’s “Economic Framing Speech”

Tomorrow, President Obama will deliver what has been previewed as an “economic framing speech.” Five questions that need to be answered in the President’s speech.

1. 3 ½ Years In, When Will America See Robust GDP Growth? The Commerce Department revised down GDP growth for the first quarter of 2012 to 1.9 percent. GDP growth for all of 2011 was 1.7 percent. The Congressional Budget Office projects growth of just 2 percent in 2012 and 1.1 percent in 2013. The post-World War II average has been 3.3 percent.

2. With Household Net Worth Dropping 40 Percent, When Will Home Values Come Back? The Federal Reserve says the net worth of American households fell by almost 40 percent from 2007-2010. Median net worth fell from $126,400 to $77,300. Much of the drop is due to the housing market.

3. What is the Priority with High Unemployment – Public Sector or Private Sector? The Labor Department says unemployment has been over eight percent for a record 40 straight months. Private sector unemployment is at 7.8 percent (9.4 million workers) and government unemployment is at 4.2 percent (899,000 workers).

4. Is the Disparity in Compensation Among Public and Private Workers Healthy? Average total compensation (wages and benefits) for a private sector worker is $28.78 per hour. For a state and local government worker it is $41.16 per hour – 43 percent more.

5. What is Your Plan for More Manufacturing in the U.S.? Orders for goods from U.S. factories are at the lowest level in six months. Manufacturing has lost 433,000 jobs since Obama took office.