Obamanomics

[molson_golden2002]

This is more pragmatic than simply 'Tax bad, spending cut good, ugh, ugh'

 

 

http://www.salon.com/tech/htww/2008/10/13/obama_rescue_plan/

 

 

The "Economic Rescue Plan for the Middle Class" includes tax credits for companies that create jobs in the United States, a 90-day moratorium on foreclosures, a lending facility for states and local governments, and, with a tip of the hat to McCain, penalty-free withdrawals from IRAs and 401Ks. As explained by Obama economic policy advisor Jason Furman on a conference call with reporters, the plan is designed to be acted upon immediately, although some elements would require Congress reconvening.

 

Other elements of the plan include suspending taxes on unemployment insurance and moving "aggressively" to help the auto industry.

 

On the conference call, Furman made an interesting comment responding to Fox News' Major Garrett, who had asked how much the package would cost. Short answer: $175 billion over two years -- a figure that would have seemed shocking six months ago, but now appears cheap compared to the price tag of bailing out the global banking system. But Furman also noted that the Obama camp had originally been counting on $50 billion of revenue from a windfall oil profits tax to partially offset the cost of its short-term middle-class rescue/economic stimulus package. The recent fall in the price of oil, however, had led the campaign to change its revenue assumptions. It was a small point, but revealing in the sense that it demonstrates the Obama campaign is paying realistic attention to current events. When you compare it, for example, to McCain's proposal of a government spending freeze in the middle of a recession, a maneuver many economists warn could easily deepen an economic downturn, the admission comes off as refreshingly pragmatic.

[SD Jarhead]

Salon huh? Um, OK...