Obama defends economic record

US president Barack Obama today defended his economic policies and slammed the Republican opposition as he courted the powerful…

US president Barack Obama today defended his economic policies and slammed the Republican opposition as he courted the powerful US labour movement for support in November 2nd congressional elections.

Firing up a key part of Democrats' traditional support base for the upcoming electoral fight, Mr Obama said helping organised labour would not hurt American businesses.

"It is my profound belief that companies are stronger when their workers are getting paid well and have decent benefits and are treated with dignity and respect," Mr Obama told leaders of AFL/CIO union federation.

Strong backing from trade unions in the 2008 presidential campaign helped sweep Mr Obama into office, and he is now trying to keep working-class Americans on his side despite signs of flagging support amid high US unemployment and tepid growth.

"We are going to keep fighting for an economy that works for everybody and not just a privileged few," he said.

Mr Obama is under pressure from Republicans and some in the business community for reforms he has championed which they claim will hurt profits in the future.

Emphasising he would continue to push for pro-union legislation, Mr Obama urged labour leaders to re-enlist the membership to battle on behalf of Democrats.

"You have to remind them for the next three months this election is a choice," Obama said, recalling Republican hostility toward unions when they held power, while he was enforcing trade rules to shield jobs and preventing federal dollars being spent on "union busting".

"That is not something we believe in. That's not right. That's tilting the playing field in an unfair way," he said, citing his nominations to the national mediation board to ensure workers got a better deal.

Former Republican vice presidential candidate Sarah Palin was quick to return fire, tweeting: "Obama's Blame Game@ AFLCIO today: predictable/tiring/ineffective/hypocritical, as he pushed & voted 4 fiscal irresponsibility while in Congress."

Trade unions have stood behind Mr Obama's massive economic stimulus program and sweeping overhauls of the healthcare system and financial regulations.

But there are signs of frustration among union leaders and the rank-and-file that he has not done more to boost job creation, with unemployment stuck at 9.5 percent despite the resumption of growth after the worst recession in 70 years.

Approval ratings have slipped for Mr Obama and his Democratic Party could lose control of Congress in November, when all 435 seats in the House of Representatives and 37 of the 100 seats in the Senate will be up for grabs.

The president insisted the economy was on the right track, although "it is going to take a lot longer than any of us would like" to fill the hole caused by the recession.

Reuters