Obama Pitches Strict Regulations, Clinton Stresses Job Training in Dueling Economic Plans
March 27: Barack Obama speaks in the Great Hall of New York's Cooper Union school. (AP Photo)
The Democratic candidates offered competing plans to lift the sagging economy Thursday, with Barack Obama calling for taxpayer relief and tougher government regulations and Hillary Clinton calling for a sweeping government-backed job training program.
Clinton, speaking at a community college in Raleigh, N.C., bashed GOP nominee-in-waiting John McCain, saying the Arizona senator is unable to handle an economic emergency.
“The phone is ringing, and he would just let it ring and ring,” Clinton said, echoing the “3 a.m. phone call” TV ad she used earlier to suggest she was more qualified than Obama to handle a national security crisis. This time, she chastised McCain for opposing government intervention in the nation’s credit and mortgage crisis.
In her plan, she proposes $2.5 billion per year to help workers train for new jobs and improve skills for existing jobs.
“We may be competing in a new global economy, but our policies to equip American workers for the 21st century are stuck back in the 20th century,” she said.
Meanwhile, Obama said in New York City that the government must revive the economy by tightening regulations and reforming its own agencies to adjust to the realities of modern finance.
In a speech billed as a major address, the Illinois senator said most experts agree the U.S. economy is in a recession.
“To renew our economy — and to ensure that we are not doomed to repeat a cycle of bubble and bust again and again — we need to address not only the immediate crisis in the housing market; we also need to create a 21st century regulatory framework, and pursue a bold opportunity agenda for the American people,” Obama said.
“We do American business — and the American people — no favors when we turn a blind eye to excessive leverage and dangerous risks,” he added.
The presidential candidate spoke not far from Wall Street, hard hit by the mortgage meltdown and credit problems.
To fix the economy, Obama proposed relief for homeowners and an additional $30 billion stimulus package to address the nation’s economic woes. He also called for a $1,000 tax cut for “working families.” Working families received tax cuts under the 2001 and 2003 cuts proposed by President Bush and passed by Congress. Those are scheduled to expire in 2011.
“If we can extend a hand to banks on Wall Street, we can extend a hand to Americans who are struggling,” he said.
New York Mayor Michael Bloomberg, the almost candidate, introduced Obama but stopped short of an endorsement.
In bemoaning the nation’s economic woes, Obama too dismissed McCain’s approach as too hands-off.
On Tuesday, McCain derided government intervention to save and reward banks or small borrowers who behave irresponsibly. Obama said McCain’s plan “amounts to little more than watching this crisis happen.”
McCain fired back even before Obama took the stage, saying he has proposed reforms to prevent systemic risks and a repeat of the credit crisis.
“However, what is not necessary is a multi-billion dollar bailout for big banks and speculators, as Senators Clinton and Obama have proposed. There is a tendency for liberals to seek big government programs that sock it to American taxpayers while failing to solve the very real problems we face,” McCain said.
Obama said the next president should:
–Expand oversight to any institution that borrows from the government.
–Toughen capital requirements for complex financial instruments like mortgage securities.
–Streamline regulatory agencies to end overlap and competition among regulators.
Clinton is offering her own prescription for economic reforms. The Universal Worker Adjustment Assistance plan she pitched would help those who have lost jobs to get trained and find a new job. Her Preemptive Training Initiative would help workers who are on the verge of losing factory jobs that move overseas. The New York senator also calls for more Pell Grants to help people attend college while working.
Clinton’s camp hit Obama for his plan, saying he “announced a series of broad, vague principles while offering no new concrete solutions to provide Americans with greater confidence in the market or keep them in their homes.”
The political debate comes as a new government report shows the economy nearly sputtered out at the end of the year and is probably faring even worse amid continuing housing, credit and financial crises. Nonetheless, jobless numbers out Thursday showed a decline this week, though analysts said they expect more losses this year.
Obama was speaking at The Cooper Union from the podium used by presidential aspirant Abraham Lincoln in 1860 when he delivered his “Right Makes Might” address, which helped him win the Republican presidential nomination.
FOX News’ Shushannah Walshe and Aaron Bruns and The Associated Press contributed to this report.
Typical Democrat solutions—tax, tax, tax with no real solutions at all. When was the last time the government did anything right when they tried to intercede in a capitalist problem? I can’t think of one.
Now Obama and Clinton are telling the American people that they have the solution to the latest economic problem. What? Because they are running for the nomination for president they have all the answers? Isn’t it funny how a candidate for president or congress suddenly knows everything. They are experts with every problem.
Where do you think the money is coming from to pay for these government programs that won’t work because they never do? Out of your pocket and mine. You might as well empty your pockets down the toilet and flush.
I find it disturding that the two Democratic canidates believe that spending even more dough is going to help this economy, fools. Tipical politician. I don’t claim to be an expert but, perhaps they should consider a tax cut to attract business and manufacturing back to to USA. This goverment and it policies are driving these jobs out. For example , Dubia, very freindly to business and attract more every day.
By the way , can someone please define the working family? and while your at it who are the middle class?
Kindest Regards
Will
That is just what we need, more big government. I am tired of bailing out people that try to get rich quick and leave people like me holding the bag. I have saved my money and own one home. The interest I was counting on to help my SS check go a little farther is now cut because of these idiots that want to buy all these homes for profit. As dumb as I am, I was smart enough to see the “housing boom” had to bust. Get a grip, government “bailouts” cost the rest of us dearly.
I’m a teacher and if Obama were in my class I would fail him for copying Hillary’s work. Obama’s answers are all, “I say whatever she said.” This has been going on for so long that I don’t think Obama has any individual or unique ideas or solutions. It’s called copying and cheating, Obama. Obama is a follower, certainly not a leader.
Obama’s talk on the economy is the first sensible, organized approach I’ve heard so far in the discussions. Too bad it will be January before steps can be begun to address the things cited.
McCain, who has himself confessed to knowing little about the economy, has only talked about standing by and observing, and he has revived the old tired refrain about Democrats standing for tax & spend. My Friends, that’s no solution.
We need something a lot more thoughtful, and I believe that thoughtfulness (and forthright honesty) is what makes Obama so appealing as a candidate.
I could not DISAGREE more with Mr. Obama. Mr. McCain is right on the money by stating it is not the responsibility of government to bail out those businesses who loaned money to very risky applicants or to those applicants who signed on for more than they had the ability to pay. Even further, it is not the responsibility of the government to look over the shoulder of the people applying for loans to make sure they understand the documents they are about to sign. There are many real estate lawyers that are available to give this advice.
Why is it that Liberals never seem to be able to place blame where it belongs? The sub-Prime Housing Market was created by the Liberals, in an effort to ensure that those least able to get a Mortgage would not be “discriminated against” and could achieve “The American Dream”. Well unfortunately in the real world, “The American Dream” also requires the “Dreamer” to actually pay for the “dream”. Liberals want Government to pay. Well, here’s a little fact for you “Big Government” Liberals, there is no such thing as “Government Money”, that money belongs to the People of this Country, and if you didn’t pay anything into that pool, or if you came across an open Border in the dark of night, than you shouldn’t be a burden on those of us who have paid all their lives, unless WE decide we want to carry that burden. It shouldn’t be arbitrarily decided by the likes of Pelosi and Reid.(While Democrats scream about the Housing market, why are Obama’s and Reid’s very suspect land dealings not mentioned ?)
Has anyone noticed that the record unemployment numbers stopped shrinking and started to grow again when Pelosi pushed through her minimum wage increase, even though economists said that is exactly what would happen. Has anyone also noticed that the number one Corporate Contributor to Ms. Pelosi’s campaign (Dole) was miraculously left out of the minimum wage increase. ( They’re headquartered in Guam, which for some strange reason was specifically exempted from her bill).
It is so incredibly transparent that the only question is how thw American People can be so stupid as to allow this thievery to continue unchecked?
The ills of the economy are rooted in people getting too many credit cards and loans and then mortgaging the house and other assets whereby they have finally go broke. This situation is encouraged and accelerated by too eager lenders, who are more than willing to write off a few bad loans when rates are 25%. Then everyone yells Help. Us poor suckers who have enough sense to stick to a budget pay for the stupid and greedy people and company folly. This is NOT what the USA is about. You are free to win and to LOSE. You lose, you go bankrupt. Tough.
The TV and movies carry on like everyone should eat well, dress well, drive a swell car, and live in a great house - with all the toys. How many people hauling out HDTVs at Walmart are on welfare? How many young people driving tricked out cars can’t afford the gas anymore? Like my Dad used to say - you want a car? take the bus. He sure as heck would not have gotten me a cell phone and paid those bills. People think they deserve anything and everything.
Obama, you need to understand the problem (it is US) before you “solve it” by adding more government. Government is non-productive overhead that saps the productive population.
People and companies must be allowed to fail. You can’t let the country, all the rest of us fail, that is unless you really don’t like America and would just as soon see it fail. It that it?
Democrats!! Control the population! Control the population’s health! Control the population’s income! Control the population’s investments! You call this “hope” and you think this is “change” for the better?
Yes, more regulations, red tape, fines, fees, taxes and obligations. Those are what the economy needs. It’s hard to believe we can function as markets, industries and businesses with the few regulations we have right now. An Obama administration would dictate every facet of every transaction so that businesses no longer to do any thinking or innovating on their own because the government would do it for them.