Protecting the Middle Class News

An America Built to Last: Strengthening Economic Security in Retirement

In his State of the Union message last week, President Obama laid out a blueprint for an America that’s built to last—where hard work pays off and responsibility is rewarded. Today, the Departments of Treasury and Labor are taking steps to strengthen economic security for our nation’s seniors by giving Americans greater investment information and access to more choices to plan for a secure retirement. These steps will be of particular importance to women, who tend to live longer and have fewer retirement assets and lower retirement income than men. 

The Department of Labor is taking action to require 401(k) plan providers to better disclose the cost and nature of the services they provide, while Treasury and the IRS are announcing steps that will ease regulatory barriers in the market for annuities and other forms of lifetime income. The Council of Economic Advisers (CEA) has prepared a detailed report describing the significance of today’s actions, which can be accessed here. 

Today’s announcements complement previous Administration initiatives to make retirement more secure for American families. In September 2009, President Obama announced expanded opportunities for automatic enrollment in retirement savings plans. The President has also championed an automatic IRA legislative proposal through which tens of millions of workers without access to a workplace retirement plan would be automatically enrolled in IRAs through payroll deposit contributions, while remaining free to opt out. And the Administration has proposed easing requirements on the timing and amount of distributions from retirement accounts for many retirees, reducing the compliance burden and providing elderly Americans with greater control over their retirement assets.  

CFPB Director Richard Cordray's Response to Administration Housing Announcement

In response to press inquiries received on today’s housing announcement by the Obama administration, Consumer Financial Protection Bureau Director (CFPB) Richard Cordray issued the following statement: 

“The principles articulated by the Obama administration today are good guideposts for much-needed reforms in the mortgage market. The problems that plague consumers are well-documented. Too many consumers were steered into complicated mortgages that they did not understand and couldn’t afford. Too many families were forced into foreclosure because paperwork was lost, phone calls went unanswered, errors were not resolved, or documents were falsified.   

“To protect consumers, there must be clear rules of the road and real consequences for breaking them. The Consumer Bureau is already hard at work making the costs and risks of mortgages clear upfront through our Know Before You Owe project. The financial reform law also requires us to create new mortgage servicing rules that hold servicers accountable for disclosing fees and fixing problems. We are also working with other federal agencies to develop common-sense national servicing standards. But having rules in place isn’t enough. We are closely monitoring mortgage servicers to make sure that no one gains an unfair advantage by breaking the law. Taking these steps to fix the mortgage market is good for consumers, honest businesses, and our entire economy.” 

The CFPB’s draft simplified mortgage disclosure is available online at: http://www.consumerfinance.gov/wp-content/uploads/2012/01/Jan2012_Estimate_Honeylocust.pdf

Weekly Wrap Up: An America Built to Last

A quick look at what happened this week on WhiteHouse.gov:

State of the Union: In his third State of the Union Address on Tuesday, the President outlined his vision for “an America that lasts”—one that will bring about a new era of American manufacturing, and promote homegrown and alternative energy sources—and presented a blueprint to achieve that vision. Check out this video that goes behind the scenes as President Obama prepared the speech.

Blueprint for Manufacturing: During his visit to New Hampshire following Tuesday’s State of the Union address, Vice President Biden highlighted the Administration’s plan to help businesses bring jobs back to America through manufacturing. He echoed the President’s message that we need to commit to train workers with the skills they will need to compete in the growing sectors of our economy.

Talking Energy in Las Vegas: From a UPS facility in Las Vegas, the President spoke about the future of American-made energy. “[Even] with all this oil production, we only have about 2 percent of the world’s oil reserves,” the President said, “So we've got to have an all-out, all-in, all-of-the-above strategy that develops every source of American energy—a strategy that is cleaner and cheaper and full of new jobs.”

#WHchat: Throughout the week, more than thirty administration officials have answered questions about President Obama’s State of the Union Address and issues Americans care about through a series of Office Hours on Twitter—addressing queries about everything from the economy to disability policy. Vice President Biden—known in the twitterverse as @VP—answered questions submitted by people across the country in his first-ever Twitter interview from an advanced manufacturing facility in Rochester, New Hampshire.

NHL Champs: On Monday, the President welcomed the Boston Bruins to the White House and congratulated them on their Stanley Cup victory in June—marking the team’s sixth Cup championship, and their first one in nearly forty years. Their triumph, the President said, “proved that teamwork is everything.” After their visit to the White House, the players led a hockey clinic—affirming that being a champion doesn’t end when you hang up your skates.

Vice President Biden Holds First Twitter Interview

Vice President Biden participates in a Twitter interview at Albany Engineered Composites in Rochester, NH, Jan 26, 2012. January 26, 2012. (Official White House Photo by David Lienemann)

This afternoon, Vice President Biden answered questions tweeted by people across the country in his first-ever Twitter interview. From an advanced manufacturing facility in Rochester, New Hampshire, the Vice President answered your questions about taxes, the DREAM act and even his Super Bowl pick.

The Blueprint for an America Built to Last

Tonight, the President outlined a series of ideas to build an economy that works for everyone, one that will bring about a new era of American manufacturing, and promote homegrown and alternative energy sources.

Taken together, those ideas represent a blueprint for the future.

For decades, economic security for the middle class has been unraveling. Jobs that were once the source of stable livelihoods were shipped overseas. Those at the very top watched their incomes skyrocket, while the majority of Americans were stuck with stagnant salaries and rising costs. And all of this was happening before the worst economic crisis in generations.

What's it going to take to address this crisis?

We need to promote new skills and better education so that all Americans are prepared to compete in a global economy. That's why, tonight, the President said every state should require all students to stay in high school until they earn a diploma or turn 18. That's why the President called for a new partnership between community colleges and businesses to help train and place 2 million skilled workers.

Regional Roundup: Insourcing American Jobs

Yesterday, the White House hosted the “Insourcing American Jobs” forum with business leaders from across the country to discuss one topic: bringing jobs back to the United States.  For too long factories have closed their doors and companies have shipped jobs overseas, where workers were cheaper. It’s damaged the economy and hurt middle class families all across the nation.  The President believes we can change that. 

Right now, we have a great opportunity for those jobs to come back – and the business leaders that joined President Obama yesterday understand that.  We’re seeing an increasing trend of insourcing, where companies are bringing jobs back and making additional investments in America. Over the past two years American manufacturers have now added 334,000 jobs. Manufacturing production has increased by 5.7 percent. That’s a good thing, but we need to do more. That’s why the President called on companies to follow this trend and invest in America.  

The President is working to restore the economic security for the middle class and those trying to reach it. He’ll continue to build an economy where hard work pays off and responsibility is rewarded. He knows this is a make or break moment for the middle class, and he’ll continue to do everything he can to give folks a fair shot and a chance to succeed.  

He knows that America shouldn’t be a nation known for financial speculation and outsourcing. As he said yesterday, America should be known for making products and selling them all over the world stamped with three proud words: “Made in America.”  

The next generation of manufacturing jobs shouldn’t take root in countries like China or Germany – they should take root in cities across America. Some companies are already leading the way. Let’s take a look at news coverage of yesterday’s event from across the country: 

McClatchy/Charlotte Observer/Miami Herald - Rebuilding a business, bringing jobs back

WASHINGTON – North Carolina has lost tens of thousands of furniture-making jobs over the past decade. 

But Bruce Cochrane, who worked as a consultant in China and Vietnam after his family sold their furniture business in 1996, says rising Chinese wages and an increase in shipping costs have created an opportunity for him back home. 

Cochrane has invested $5 million and is hiring 130 workers to build middle- to higher-priced solid-wood furniture in the same sprawling Lincolnton, N.C., warehouse that his family once ran. He even moved into his dad’s old office. 

Now, President Barack Obama wants to know what Cochrane saw and why he’s taking such a chance in a region and industry battered by outsourced jobs. Cochrane stood Wednesday in the East Room of the White House as Obama said the Lincolnton man was proof that you don’t have to be a big manufacturer to make a difference. 

Resurgence of the American Auto Industry

Yesterday, the North American International Auto Show kicked off in Detroit, with companies unveiling their new vehicles and folks eager to get their first peek. Transportation Secretary Ray LaHood was on hand for the opening events, and Commerce Secretary John Bryson, Energy Secretary Steven Chu, EPA Administrator Lisa Jackson, and the Labor Department’s Director Office of Recovery for Auto Communities and Workers Jay Williams are all taking part in auto show activities this week. 

The auto industry had a strong year in 2011. It’s easy to forget, but just a few years ago many people doubted whether there would even be an American auto industry in 2011.

When President Obama took office, we faced the worst recession since the Great Depression, and the American auto industry was hit hard. Hundreds of thousands of jobs were lost in the auto industry, and entire communities that depended on a dealership or a parts manufacturer were affected.   

Both GM and Chrysler faced the stark choice of seeking government support or facing almost certain uncontrolled liquidations, which would have had a ripple effect across the industry, causing at least one million more jobs to be lost. The President refused to let that happen.

In the face of stiff opposition, the President made a tough choice to help provide the auto industry the temporary support it needed to rebuild their companies and get moving again. This was a difficult decision, and came with significant risk. But the President was not willing to walk away from these workers and this great American industry.

Today, the American auto industry is coming back, creating jobs and moving cars off the line. Last month, the automotive industry added nearly 11,000 positions, bringing the total number of jobs added in the fourth quarter of 2011 to 36,000. The industry added 100,000 jobs over the course of 2011.

Since Chrysler and GM emerged from bankruptcy in June of 2009, the auto industry has added back more than 170,000 jobs, the best period of job growth in more than a decade. While there’s more work to be done, it’s clear the auto industry is moving in the right direction. 

In December, we saw auto sales climb for the seventh consecutive month. The Big Three -- Ford, GM and Chrysler -- all saw sale increases for December, and the year as a whole.

In addition, because of the President’s leadership, we have put in place historic higher fuel economy standards, which will save Americans $1.7 trillion in fuel costs and reduce oil consumption by 12 billion barrels. That means families will begin saving money at the pump this year.

But there’s a lot more work to do to get the American people back to work. The President will continue to fight to restore the economic security for the communities that were hit just a few years back, to strengthen the middle class and rebuild an economy where hard work pays off and responsibility is rewarded.

Folks in Detroit and in auto communities across the country know what it takes to get the job done. They know a little something about hard work. They know what it takes to fight to rebuild their community and we’ll continue to stand right by their side every step of the way.

President Obama meets CFPB

President Barack Obama delivers remarks at the Consumer Financial Protection Bureau in Washington, D.C., Jan. 6, 2012. CFPB Director Richard Cordray, left. (Official White House Photo by Pete Souza)

Two days after appointing Richard Cordray to head the Consumer Financial Protection Bureau, President Obama headed over to the CFPB offices to help staff welcome their boss and talk about the day's economic news.

First, the President discussed the new jobs figures:

This morning, we learned that American businesses added another 212,000 jobs last month. Altogether, more private sector jobs were created in 2011 than any year since 2005. And there are a lot of people that are still ... hurting out there. After losing more than 8 million jobs in the recession, obviously we have a lot more work to do. But it is important for the American people to recognize that we’ve now added 3.2 million new private sector jobs over the last 22 months -- nearly 2 million jobs last year alone. So after shedding jobs for more than a decade, our manufacturing sector is also adding jobs two years in a row now.  So we’re making progress. We’re moving in the right direction.

But as the economy starts to rebound, the President said, we have a responsibility to do more than just get back to where we were before the financial crisis. We have to remake the system so that the middle class knows that hard work pays off, that everyone plays by the same set of rules.

West Wing Week: 01/06/2012 or The Annual Resolutions Edition

This week, the President traveled to Cleveland, Ohio, to discuss appointing Richard Cordray to lead the Consumer Financial Protection Bureau -- which will protect families from predatory lenders -- spoke on a comprehensive review of our defense strategy, and the White House staff shared its New Year's resolutions.