Analysis: Obama suffers political setback in deal

President Barack Obama suffered a defeat in the battle over raising the U.S. debt limit that may have repercussions for his efforts to restore growth to the U.S. economy and win re-election in 2012.
The outcome of the debt battle dismayed Obama's liberal base just when he needs them for 2012 fundraising and support, and emboldened his Republican adversaries who forced him to accept more spending cuts than he wanted.
The debate also did nothing to help Obama clear his biggest hurdle to re-election -- the country's 9.2 percent jobless rate. In fact, it ratcheted up the bar by generating so much uncertainty that businesses sharply cut back investing and hiring.
"While Washington has been absorbed in this debate about deficits, people across the country are asking what we can do to help the father looking for work," Obama said on Tuesday.
Now Obama will likely turn his attention to a big push on measures to help the economy and keep it from dipping back into recession. That could include an extension of a payroll tax cut and approval of stalled trade deals with Panama, Colombia and South Korea.
That, and time, could help him overcome the damage from the debt debate. It could, in fact, be a blip on the screen as voters consider Obama against a field of Republican candidates that many analysts see as weak.
"I think he gets credit for being the reasonable guy in the room," said Democratic strategist Bob Shrum. "I think he has to take a temporary hit looking like he wasn't able to command the whole process."
PASSING BLAME
Americans seem to blame Republicans more for the crisis that almost drove the United States to an unprecedented default, and that will help Obama. A Reuters/Ipsos poll last week found 31 percent of Americans ...