Blue Spot

Obama pledges second stimulus package | Freep.com | Detroit Free Press

WASHINGTON -- On the same day Republican presidential contender Sen. John McCain held a town hall in Warren, Democratic rival Sen. Barack Obama pledged to UAW members his support for a second economic stimulus plan with funding for low-interest loans to automakers, saying "America cannot truly prosper unless Michigan prospers."


"By providing tax credits and loan guarantees for our automakers and by expanding consumer tax incentives for ultra-efficient vehicles, I will provide real solutions necessary to help this industry compete and win in the global economy," Obama said in the letter released by his campaign today.

Obama and other Congressional Democrats have said they would push for a second stimulus plan in September that could reach $50 billion, an idea that the Bush administration has not favored so far. McCain opposes the loan program, as his campaign says his proposals -- a $5,000 consumer tax credit for efficient vehicles, a $300 million prize for electric vehicle batteries and strict goals for flex-fuel vehicles -- would accomplish the same goals.

Labels: Economy, Obama

Here we go again. Just like right after 9-11. The government is telling us to save the American economy by going shopping! I know my $600, and I suspect it's the same for many of you, is already gone. Oh well...guess that flat screen tv is going to have to wait.

Labels: cartoon, Economy

Larry Kudlow on Barack Obama and Tax Policy on NRO Financial

It’s rather amusing watching the liberal media launch a full-scale attack on George Stephanopoulos and Charles Gibson, with General Tom Shales of the Washington Post leading the charge. ABC’s Stephanopoulos and Gibson had the audacity to ask Obama some tough questions during the Democratic debate Tuesday night. Challenge Obama with well-informed questions on tax policy and politics? Wound the media favorite? How dare they?

The fallout is fascinating. With members of the mainstream liberal media lunging at each others throats, it’s kind of like watching Hillary and Obama go at it.

But here’s the deal: During the debate, Obama bungled his answers on tax policy, big time. Period. End of sentence. End of story. To my liberal friends in the media, all I can say is: Get over it. Your guy has a very poor grasp of basic economic principles.

First off, you don’t raise taxes during a recession. That’s a no-brainer. Second, doubling the capital-gains tax rate will affect Americans up and down the income ladder, not just rich hedge-fund managers. In addition, capital-gains tax cuts are self-financing, and they stimulate jobs and the economy. You want to raise budget revenues and spark economic growth? Cut the cap-gains tax rate. That’s what history shows.

The Wall Street Journal’s Steve Moore points out that in 2005, almost half of all tax returns reporting capital gains came from households with incomes under $50,000, while more than three-quarters came from households earning less than $100,000.

Obama also proposed uncapping the payroll tax, another blunder that will hit people up and down the income ladder. While Obama pledges tax hikes only for folks earning more that $200,000 a year, his tax hike on payrolls would actually slam middle-income earners. The cap on wages subject to the payroll tax is presently $102,000. By eliminating that cap Obama will be soaking veteran firemen, cops, teachers, and health-service workers, along with a variety of other occupations.

Labels: Debates, Economy, Election 2008, Media, Obama

Greenspan bashes Bush policies - U.S. Business - MSNBC.com

WASHINGTON - Former Federal Reserve Chairman Alan Greenspan, in his upcoming book, bashes President Bush for not responsibly handling the nation’s spending and racking up big budget deficits.

A self-described “libertarian Republican,” Greenspan takes his own party to task for forsaking conservative principles that favor small government.

“My biggest frustration remained the president’s unwillingness to wield his veto against out-of-control spending,” Greenspan wrote.

Labels: Economy, Financial, Record deficits

John Perkin, author of "The Secret History of the American Empire." Here he talks about how he participated as an "economic hitman" to third world countries.

Labels: Corporatocracy, Economy, Poverty

Clinton outlines broad economic vision - Yahoo! News

MANCHESTER, N.H. - Presidential hopeful Hillary Rodham Clinton outlined a broad economic vision Tuesday, saying it's time to replace an "on your own" society with one based on shared responsibility and prosperity.

The Democratic senator said what the Bush administration touts as an ownership society really is an "on your own" society that has widened the gap between rich and poor.

"I prefer a 'we're all in it together' society," she said. "I believe our government can once again work for all Americans. It can promote the great American tradition of opportunity for all and special privileges for none."

That means pairing growth with fairness, she said, to ensure that the middle-class succeeds in the global economy, not just corporate CEOs.

"There is no greater force for economic growth than free markets. But markets work best with rules that promote our values, protect our workers and give all people a chance to succeed," she said. "Fairness doesn't just happen. It requires the right government policies."

Labels: Economy, Election 2008, Hillary