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| North Carolina edges towards recovery but voters lukewarm on Obama | North Carolina edges towards recovery but voters lukewarm on Obama |
| (4 months later) | |
| The world's biggest residential furniture fair took place in High Point, a small town in North Carolina 90 minutes drive away from Charlotte, this week. For the first time since the recession hit the United States almost five years ago, Alex Bernhardt thinks that this year there is reason to be optimistic. But he's not going overboard. | The world's biggest residential furniture fair took place in High Point, a small town in North Carolina 90 minutes drive away from Charlotte, this week. For the first time since the recession hit the United States almost five years ago, Alex Bernhardt thinks that this year there is reason to be optimistic. But he's not going overboard. |
| "Things are better than they were in 2008 but not nearly as good as they were in 2007", the chairman of Bernhardt Furniture said from his plant in Lenoir. | "Things are better than they were in 2008 but not nearly as good as they were in 2007", the chairman of Bernhardt Furniture said from his plant in Lenoir. |
| "We're halfway back." | "We're halfway back." |
| The company, Bernhardt says, was devastated by the collapse in the housing market – the worst the US has ever suffered – in the aftermath of the sub-prime mortgage crisis. But in recent months there have been signs that a combination of time and the colossal stimulus provided to the economy have started to work. | The company, Bernhardt says, was devastated by the collapse in the housing market – the worst the US has ever suffered – in the aftermath of the sub-prime mortgage crisis. But in recent months there have been signs that a combination of time and the colossal stimulus provided to the economy have started to work. |
| Prices are gently rising, the number of new buildings is rising, forced sales are dropping. The unemployment rate nationally has dipped below 8%, and – according to Bernhardt – among his 1,000 workers the "fear has abated" for those with a job. But there's a long way to go. | Prices are gently rising, the number of new buildings is rising, forced sales are dropping. The unemployment rate nationally has dipped below 8%, and – according to Bernhardt – among his 1,000 workers the "fear has abated" for those with a job. But there's a long way to go. |
| In Bernhardt's Caldwell County unemployment is still 13%. | In Bernhardt's Caldwell County unemployment is still 13%. |
| The essence of Barack Obama's pitch to the American people is that government action is starting to repair the damage to the economy. His period in office has seen 5m private sector jobs created, the auto industry saved from bankruptcy, and a commitment by the Federal Reserve, to keep interest rates low until America is fully back to work. | The essence of Barack Obama's pitch to the American people is that government action is starting to repair the damage to the economy. His period in office has seen 5m private sector jobs created, the auto industry saved from bankruptcy, and a commitment by the Federal Reserve, to keep interest rates low until America is fully back to work. |
| Consumers are more hopeful than they have been in five years, according to the latest University of Michigan poll. But that rise has to be put into the context of the worst half-decade for the US economy since the Great Depression of the 1930s. | Consumers are more hopeful than they have been in five years, according to the latest University of Michigan poll. But that rise has to be put into the context of the worst half-decade for the US economy since the Great Depression of the 1930s. |
| The glacial pace of America's recovery – highly unusual for a country that until the 1990s had a tradition of coming out of recession fast – has made this year's presidential race a knife-edge contest. US voters are susceptible to the question posed by Ronald Reagan in his contest with Jimmy Carter in 1980: do you feel better off than you did four years ago? | The glacial pace of America's recovery – highly unusual for a country that until the 1990s had a tradition of coming out of recession fast – has made this year's presidential race a knife-edge contest. US voters are susceptible to the question posed by Ronald Reagan in his contest with Jimmy Carter in 1980: do you feel better off than you did four years ago? |
| Obama's approach to running the economy has been cautious. Early in his presidency he announced a stimulus package worth almost $800bn; it was attacked as reckless extravagance by the Republicans, but as timid and inadequate by Keynesian economists such as Paul Krugman. | Obama's approach to running the economy has been cautious. Early in his presidency he announced a stimulus package worth almost $800bn; it was attacked as reckless extravagance by the Republicans, but as timid and inadequate by Keynesian economists such as Paul Krugman. |
| Unlike Franklin Roosevelt in the 1930s, he has not sought to punish Wall Street for its role in blowing up the economy. The current incumbent of the White House could not say, as FDR did when seeking re-election in 1936: "Wall Street hates me and I welcome that hate." | Unlike Franklin Roosevelt in the 1930s, he has not sought to punish Wall Street for its role in blowing up the economy. The current incumbent of the White House could not say, as FDR did when seeking re-election in 1936: "Wall Street hates me and I welcome that hate." |
| The stock market has rallied strongly in the past four years, and one of Obama's problems is that Wall Street has done a whole lot better than Main Street, affected by the triple whammy of high unemployment, a depressed housing market and a squeeze on wages. Simon Johnson, economics professor at MIT, said the failure to crack down harder on the financial sector was "shocking and appalling given the damage caused by Wall Street". | The stock market has rallied strongly in the past four years, and one of Obama's problems is that Wall Street has done a whole lot better than Main Street, affected by the triple whammy of high unemployment, a depressed housing market and a squeeze on wages. Simon Johnson, economics professor at MIT, said the failure to crack down harder on the financial sector was "shocking and appalling given the damage caused by Wall Street". |
| North Carolina, where the unemployment rate is two points above the national average and nudging 10%, is a state Barack Obama narrowly won in 2008 but looks likely to lose to Mitt Romney next month. | North Carolina, where the unemployment rate is two points above the national average and nudging 10%, is a state Barack Obama narrowly won in 2008 but looks likely to lose to Mitt Romney next month. |
| The state's economy was once based around the three Ts –textiles, tobacco and timber – but diversified in the wake of the decline of traditional manufacturing. This recession hit new industries as well as old. | The state's economy was once based around the three Ts –textiles, tobacco and timber – but diversified in the wake of the decline of traditional manufacturing. This recession hit new industries as well as old. |
| Charlotte, where Obama held the Democratic party convention this year – is the home of Bank of America, which has slashed jobs by the thousands in recent years. Its biggest private sector employer is Carolinas Healthcare System, which employs more than 20,000 people in the city and 60,000 across the state. | Charlotte, where Obama held the Democratic party convention this year – is the home of Bank of America, which has slashed jobs by the thousands in recent years. Its biggest private sector employer is Carolinas Healthcare System, which employs more than 20,000 people in the city and 60,000 across the state. |
| Even the healthcare industry felt the pinch as companies cut back insurance and people who lost jobs, and their health coverage, deferred procedures. | Even the healthcare industry felt the pinch as companies cut back insurance and people who lost jobs, and their health coverage, deferred procedures. |
| Joe Piedmont, president and CEO, said he had been surprised by the severity of the recession. "We believed healthcare tended to be insulated from the general economy, but we found elective procedures and discretionary spending on health dropped." | Joe Piedmont, president and CEO, said he had been surprised by the severity of the recession. "We believed healthcare tended to be insulated from the general economy, but we found elective procedures and discretionary spending on health dropped." |
| Life is getting better, he said, but its not just the economy that is holding business back. The bitter political infighting that has characterised Obama's first term remains a real drag on the economy, he said. Decisions are delayed, investments put on ice as business leaders worry about what the future holds. | Life is getting better, he said, but its not just the economy that is holding business back. The bitter political infighting that has characterised Obama's first term remains a real drag on the economy, he said. Decisions are delayed, investments put on ice as business leaders worry about what the future holds. |
| "People really don't want four more years of the last two years of gridlock. I can remember the 60s and in my lifetime I can't recall anything like this. This is a very big philosophical divide." | "People really don't want four more years of the last two years of gridlock. I can remember the 60s and in my lifetime I can't recall anything like this. This is a very big philosophical divide." |
| Natalie English, senior vice-president for Charlotte's chamber of commerce, agrees. "I have never seen political deadlock like this. It's really bad for business. There are decisions about infrastructure that need to be made for this community that are just stuck because of political infighting. No one will compromise." | Natalie English, senior vice-president for Charlotte's chamber of commerce, agrees. "I have never seen political deadlock like this. It's really bad for business. There are decisions about infrastructure that need to be made for this community that are just stuck because of political infighting. No one will compromise." |
| At the Democrats' Charlotte office Sam Spencer, president of the Young Democrats of North Carolina, is organising the final push before voting begins. Spencer says the economy is issue number one but while the present remains difficult he believes Obama has proven he is on the right track. | At the Democrats' Charlotte office Sam Spencer, president of the Young Democrats of North Carolina, is organising the final push before voting begins. Spencer says the economy is issue number one but while the present remains difficult he believes Obama has proven he is on the right track. |
| "People are aware that the president inherited an economic disaster," says Spencer. "We were on track for economic collapse, we saw the abyss and we are still standing." He says local voters are keen to push back against the more extreme Republican elements and that their hardline stance on social issues is winning over voters. | "People are aware that the president inherited an economic disaster," says Spencer. "We were on track for economic collapse, we saw the abyss and we are still standing." He says local voters are keen to push back against the more extreme Republican elements and that their hardline stance on social issues is winning over voters. |
| Bernhardt is far less keen on four more years of Obama. Not least because he believes Obama is anti-business. "He has been antagonistic to business. He's populist, he attacks the banks. He's much more liberal than most business people," he said. | Bernhardt is far less keen on four more years of Obama. Not least because he believes Obama is anti-business. "He has been antagonistic to business. He's populist, he attacks the banks. He's much more liberal than most business people," he said. |
| But on one thing they both agree. "It's going to be very close," said Bernhardt. | But on one thing they both agree. "It's going to be very close," said Bernhardt. |
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