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.
More government- Brilliant! The more filters you place between peoples decisions and the natural consequences of those decisions, the worse those decisions become. Individuals, businesses, and governments.
Obama AND Hillary are clueless to the point of being dangerous about the economy. Both show themselve to be nothing more than SOCIALISTS in “Progressive” clothing. Either one of them in the office of the Presidency would be the WORST possible detriment to our country at this point in history.
Their answer for the normal flow of the economic cycle is to Tax, Spend and Regulate. That is a recipe for the total collapse of the American economy as we know it.
I have to laugh (to keep from crying)… Hillary wants to train people? For what? If they regulate and tax business and the wealthy to the point where they no longer can function as the real “Job Creators,” you can train people till the cows come home but there won’t be any jobs for them to work at!! Unless we’re ready to become the full blown socialist empire tat they both obviously prefer.
America, wake up…PLEASE. Vote McCain.
The number one problem in this Country is the big, wasteful Federal and State Governments. Over regulation and taxation coming from all levels of government is nothing more than a huge drag on the economy. We certainly don’t need higher personal and business income taxes ! We don’t need higher sales taxes and government fees ! We don’t need higher property taxes! People are sick and tired of all the taxation…and the democrats want to raise taxes? What America needs is belt tightening…we simply can’t afford
all this uncontrolled spending. Government needs to lead the way and make cuts across the board. Let’s Save America !
It all sounds so perfect with Obama — until we find out what the “working family” really means. Regulation only allows big business to pass on the expense to– guess who — the working family.
More regulations and more spending of taxpayers money will fix the economy? These two democratic contenders sound like they are quoting the government from “Atlas Shrugged”. The founding fathers did not want a government that people depend on to provide for them; they declared a government that gave people the freedom to do for themselves.
Also:
I know that, if my pastor said the things reverend Wright said, I would get up, walk out, and find another church.
Also:
If I told my friends and family that I landed in Bosnia under snipper fire running for cover and it was not true, they would not say I “mis-spoke” they would say I lied, and they would be right.
What a sad set of choices we have this election year.
I would suggest them insted of giving the tax break they could reduce the realestate tax by 25% and eliminated the realestate tax for 2008 completly and refund 2007 realestate tax those would dont have kids and kids under the age 6 or more than 18 years for age . This way will help the home sales and there by the economy can improve because citizens may show interst in buying the house if there is no realestate tax
Both of these pitch Marxist-like plans for “the good of the many”, while finding even more ways to make ME pay for other peoples issues. Need job training? Go to school, or get a job and get training there. Nobody handed me squat, and I wouldn’t have taken it if they did.
Hey, let’s have them choose our housing plans and our doctors too.
Communism is collapsing all over the world for a reason, why would we want to bring it here?
Excuse Me, what happened to being responsible for your actions? As Americans we have the freedom to choose to go into a contract of purchasing a home, car or getting married. If one of the above fails, who is responsible? Not the government, or my next door neighbor (a tax payer). Therefore ‘I’, me, an American am obligated to find a solution to MY decision. MY Government is there to protect and serve, not pay for MY mistakes. This country will go down in flames if the Government starts trying to BAIL OUT everyone. GET A JOB, DO IT YOURSELF! OR BE HUNGRY!
The Cookie MOM
Excuse Me, what happened to being responsible for your actions? As Americans we have the freedom to choose to go into a contract of purchasing a home, car or getting married. If one of the above fails, who is responsible? Not the government, or my next door neighbor (a tax payer). Therefore ‘I’, me, an American am obligated to find a solution to MY decision. MY Government is there to protect and serve, not pay for MY mistakes. This country will go down in flames if the Government starts trying to BAIL OUT everyone. GET A JOB, DO IT YOURSELF! OR BE HUNGRY!
Obama wouldn’t recognize a recession if it crawled up and bit him on the rear end. Not a clue. He has continually said zilch about anything that made sense.
H Clinton is just as bad with her “misspoke” and continued fantasies about her so called plans to deal with the economy, war, and other things. She out and out lies.
I voted Democratic in years past, but will vote Republican this year since one of these two bimbos will run against McCain.