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.
Well i think regulations might be a decent idea, but not like obama is thinking. The main reason our economy is having a hard time recovering is because the price of oil is way too high. I say we open the reserves at $50 a barrel. Then we cap gas prices based on $50/barrel. This will accomplish many things. First we will be putting extra money into the government to help with the national deficit. Second we would be telling OPEC that we won’t pay their prices because they are too high. Third, we will lower gas prices and keep money in the pockets of americans so they can buy more stuff and pay bills. We will also lower the price of everything because we will have lowered the cost of transportation. This will also put more money into the pockets of americans and give our companies a stronger edge in the world markets. At the end of the day we will have more money in our pockets, OPEC will have been forced to lower their prices, and we can rebuild our reserves using OPEC oil for the next time they try price gouging.
Obama talks about economic woes for working families but he is taking donations from sub prime lenders. This is a piece of article from internet:
On Monday, the Obama campaign responded to Hillary unveiling comprehensive plan to deal with the housing crisis by attacking her for taking contributions connected to sub prime lenders. Campaign manager David Plouffe said: “If we’re really going to crack down on the practices that caused the credit and housing crises, we’re going to need a leader who doesn’t owe those industries any favors.”
As it turns out, those were just words… Today, Senator Obama gives an economy speech followed by a fundraiser at - you guessed it - one of the top 10 issuers of sub prime loans in America, Credit Suisse. In fact, Senator Obama has taken more money from the top 10 issuers of sub prime loans than BOTH Senator Clinton and Senator McCain
- Obama has taken $1,180,103 from the top issuers of sub prime loans. [cq.com]
- Obama received $266,907 from Lehman. [Cq.com]
- Obama received $5395 from GMAC. [Cq.com]
- Obama received $150,850 from Credit Suisse First Boston. [Cq.com]
- Obama received $11,250 from Countrywide. [Cq.com]
- Obama received $9052 from Washington Mutual. [Cq.com]
- Obama received $161,850 from Citigroup. [Cq.com]
- Obama received $4600 from CBASS. [Cq.com]
- Obama received $170,050 from Morgan Stanley. [Cq.com]
- Obama received $1150 from Centex. [Cq.com]
- Obama received $351,900 from Goldman Sachs. [Cq.com]
Obama is on the right track and his choice of venues has been very very telling and interesting and he seems to follow the footsteps of really great leaders before our time.
This guy is a once in a lifetime type leader and guys need to see that and for any cynicals wake up.
Clinton and her scorched earth approach is very selfish and ought to step down while she has a little dignity left.
Hmm, didn’t we try strict governmental control of various industries: What happened in the 70’s when we tried it then? Oh, yeah a new term was created “stagflation”. Why do liberals think that regulation and taxation are the answers to everything? Eventually, bills have got to be paid. If we pay the proce now for our lack of judgement as a country and people, we just might be better off long term. Look at the depression era and the type of people that it generated. thrift, savings, and making the most of what you had. People stoll alive today that lived through the depression still carry themselves that way. Perhaps we need to let others fail in order to leanr their mistakes and not repeat them. the cliche goes: if we fail to learn the lessons of history, we are doomed to repeat them. Sounds like Clinton and Obama want to learn them the hard way.
Here they go again. Liberals Hillary and Obama are proposing socialist big government supposed solutions to our current economic downturn. McCain is right … the government shouldn’t have to bail out speculative lenders, encouraging irresponsible behavior again and again if they know the government will rescue them when they run into problems.
If Hillary or Obama is elected president watch the federal deficit go through the roof.
Liberals also don’t understand how the economy works either. There is no way to prevent occasional recessions. The Republicans have a much stronger record keeping the economy going than the Dems, but recessions are inevitable, as any economist will tell you.
Ill say it again and again, what does a guy who has only been a senator for 4 years, know anything on anything???????????? Come on people, your blind sided by this guy who says he will bring a different type of politics to the US. People are starting to see that his different politics isnt going to be what anyone wants. Look at his charitable contributions. Didnt start giving anything til he decided to run for President 2006!!!! Hello!! Most of it went to Church of Trinity in Chicago. What does that tell you? I do agree with the polls, if Obama gets the nomination, they will either vote for McCain or no one…Come on Obama, quit being unjust Politician and let the People in florida and Michigan re-vote… I just want to know, what is not fair about that? Just because you know what this will do to you, how could you even accept the nomination with out those two states????? At least Hillary is willing to re-vote and take that chance of not winning those two states, so whats your problem Obama?? I have to give her credit for that and its not just because she won those states in january, its because they way this election has gone so far, it has been all over in every direction, so to me she wins my vote for that.
A $1,000 tax cut for working families? This should raise questions in people’s minds. Does it? Or are Obama supporters just buying this hook, line, and sinker because it sounds nice? Who in Obama’s mind are “working families”? How did he arrive at a $1,000 figure? Why not $250, or $1,400 or some other amount? Does he intend to reduce government spending to offset this? Come ON, people!! Have you ever met the Up Brothers — as in GROW and WAKE?? A Democrat telling you he wants to cut your taxes is like Charles Manson saying he wants to be a priest! Get real!
Yep…big government and big regulation. A surefire winner. NOT!!!
Seriously people This is rediculous!!! Obama,Clinton and the Media want us to be scared into a recession. I know jobs are not the precursor to how well the economy is preforming, but President bush has created more new jobs than any other president in our history. So, why are we talking about recession? I want to talk about the economy, and the well being of our economy, but give us a break. Everytime a presidential campain rolls around the dems want to turn the economy into a recession…….The media is fueling the fire when it comes to anything that has to do with their interests ( the democrats ). Start doing yourselves a favor; think for yourself and don’t believe the media when it comes to politics. Obama needs a plan, and if the above staed is his plan then he keeps reaffirming to me that he still has no plan.
His opponent claims he is just words with no substances. I don’t know what she is saying nowadays especially after hearing this kind of detail economic plans from him. I think she has forgotten that “you can not stop the chosen one”. The only wish his opponent can do is to pray for him to stumble a little bit. Always the chosen one never falls down.
Goodluck Barack!
Barack comes from the name Baraka in kiswahili, means the “blessed one”.