NPR 2009-01-31

With the nation's economy suffering its sharpest slowdown in more than a quarter century, President Barack Obama is hoping to connect with middle-class voters. NPR's Scott Horsley has more.

President Obama says the recession is deepening. He pointed 1 to new figures from the Commerce Department showing the economy hitting the breaks in the fourth quarter as more evidence that the Congress needs to act quickly on a massive stimulus 2 bill. Mr. Obama also wants to see to it that when the economy starts to recover, the benefits are widely shared. He ordered a new task force to investigate training opportunities and ways to improve the balance between work and family life. "We know we need to create jobs, but not just any jobs. We need to create jobs that sustain families and sustain dreams; jobs in new and growing industries; jobs that don't feel like a dead end, but a way forward and a way up. " Mr. Obama also signed several executive orders favorable to labor 3 unions saying strong unions can exist side by side with growing business. Scott Horsley, NPR News, the White House.

As for just how badly the US economy slowed in the final three months of the last year, the government announced today the gross domestic product shrank at a 3. 8% annual rate. While not as bad as some economists 5 had forecast, the news of economy was not good. Nigel Gault is the chief economist 4 for Global Insight, and says the amount of unsold goods in warehouses 6 and backlogs 7 has been building. "Because firms were piling up inventory 8 of unsold goods, that meant that the production decline wasn't as deep as the sales decline. That's bad news for the future, because those unsold goods are gonna have to be worked off probably with further steep production drops. " The fourth-quarter drop in GDP was the biggest since 1982.

Just the day after Illinois lawmakers removed their former governor from office, new Governor Pat Quinn signed an executive order authorizing 9 a reform commission. NPR's Cheryl Corley reports.

Illinois Governor Patrick Quinn surprised the throng 10 of reporters at the State House coming from behind him instead of through the front doors of the Governor's office to get to a press conference podium. Quinn said the state has suffered "a body blow" over the last several weeks as it's struggled with the corruption 11 scandal of former Governor Rod Blagojevich. But he says those days are over now. He signed his first executive order formally establishing a commission charged with finding ways to clean up state government. "We are sending a message to the people of Illinois that we understand that integrity is No. 1, when it comes to the government of the Land of Lincoln. " Quinn says he'll be busy working to mend the flaws in state government and he will be meeting with other Illinois officials to lay the groundwork for his administration. Cheryl Corley, NPR News, Springfield.

Former Maryland lieutenant 12 governor Michael Steele has been elected the new chairman of the Republican National Committee. Selection of Steele marks the first time an African-American has headed the Republican Party.

On Wall Street today, the Dow Jones Industrial Average fell 148 points to close around 8, 000. The NASDAQ lost 31 points.

This is NPR.

Federal officials say they have now launched a criminal investigation 13 into the salmonella outbreak blamed for as many as 8 deaths and sickening of more than 500 others. The head of the Food and Drug Administration's Food Safety Center announced today the Justice Department will now investigate possible criminal violations 14 by Peanut Corp. of America. State and Federal Health officials reported finding widespread contamination at a Georgia plant as well as evidence the plant management knowingly shipped salmonella-tainted products.

New York City Mayor Michael Bloomberg says he may have to slash 15 the city's workforce 16 by more than 20, 000 jobs. The mayor submitted his budget because of a $4 billion deficit 17 for next year. NPR's Robert Smith reports.

Blame Wall Street. Financial firms lost $47 billion last year, tens of thousands were laid off. And no surprise, tax revenues for New York City plunged 18. Now Mayor Bloomberg says there is only so much trimming that can be done without laying off people. His budget projects that the city payroll 19 will be shrunk by 23, 000. Among those who could lose their jobs, 14, 000 city teachers. "We are not walking away from our school system, but would you like to cut the entire police department to pay for it? " Bloomberg pleaded for New York State to increase its education funding to the city so that teachers wouldn't be fired. Bloomberg is also proposing increasing the city's sales tax by a quarter of a percent. Robert Smith, NPR News, New York.

Even with a 33% drop in fourth quarter earnings 20, it was still a pretty decent year at Exxon Mobil. Company says for all of last year it earned $45 billion, that's a record for a US company. The record earnings came amid a run-up in oil prices early in the year which sent the price of crude oil to near $150 a barrel in July.