WASHINGTON — Not since at least 1980, when the United States was reeling from the oil shocks, inflation and slow growth of the previous decade, has the economy been in worse shape heading into the heart of a presidential campaign. The crush of bad economic news — six consecutive months of job losses, rising rates of home foreclosures, gasoline prices seemingly headed toward $5 a gallon — is increasingly setting the contours of the race between Senators Barack Obama and John McCain.
Both candidates plan to spend this week focusing almost entirely on the economy. But both face political problems with the issue.
Mr. McCain, Republican of Arizona, has been shadowed by his statements earlier in the campaign that he is not expert in the subject of the economy and by the likelihood that voters will associate him with the economic policies of the Bush administration. He has embraced President Bush’s stands on central issues like tax cuts and trade policy.
Mr. Obama, Democrat of Illinois, has had difficulty connecting with working-class voters, and his more ambitious responses to economic problems like expanding access to health insurance would be paid for in part by tax increases, always a risky proposition.
The two campaigns are retooling strategies and preparing for what aides said would be months of economic speeches, town-hall-style meetings on the economy and economic proposals, both new and repackaged — testimony to how the campaigns view the electoral environment.