Democrat presidential candidate Sen. Barack Obama, D-Illinois, today unveiled a new $210 billion federal spending plan that he says would create jobs in construction and environmental services.The Obama proposal would invest money over 10 years in two programs, the largest of which would be a $150 billion effort to create 5 million "green collar" jobs to develop more-environmentally friendly energy sources.
The remaining $60 billion would fund a National Infrastructure Reinvestment Bank to rebuild the nation's highways, bridges, airports and other public facilities. Obama said the construction fund would create nearly 2 million jobs, many of them in construction directly - - a sector hard-hit by the housing sector's correction - - the nation's most severe housing slump in more than 20 years.
Rival Democratic Sen. Hillary Clinton, D-New York, called Obama's effort unoriginal. Neera Tanden, Clinton's policy director, said Obama was offering ideas Clinton proposed months ago. "Voters may ask themselves that if Senator Obama cannot produce his own ideas on the campaign trail, how will he solve new problems as president?" Tanden said in a memo e-mailed to reporters, The Associated Press reported.
Furthermore, the Republican National Committee, which seeks to portray Obama as a tax-and-spend liberal, included Obama's plan on its 'Obama Spend-O-Meter.' The Republicans assert that Obama's announced programs would add $850 billion in federal spending over four years, including health care, education, national service and foreign aid programs, among others. The RNC's web site did not break down the asserted total by year, but economist Steve Affinito told BloggingStocks Wednesday, assuming equal, annual appropriations of $212.5 billion, the total would not be an unreasonable nor an unwarranted outlay, from an economic standpoint, in his interpretation.
"I don't know where the RNC obtained its $850 billion total, but for the sake of argument, even it was $220 billion per year, that's fairly modest, given the services it includes, including universal health insurance," Affinito said. "Also, given the current state of the economy we may find we may need another $150-$200 billion economic stimulus this year, just to keep the economy growing. So in that regard, Sen. Obama's proposal is insinc with the times and a net positive for the U.S. economy."
( President Bush today signed a $170 billion fiscal stimulus package that provides tax rebates and business investment incentives.)
Obama wasn't too pleased arguing "this agenda is paid for," according to The Associated Press . Obama said the money for his spending proposals will come from ending the Iraq War, cutting tax breaks for corporations, taxing carbon pollution and raising taxes on high income earners.
Economic Analysis: Upon initial review, both programs appear timely and prudent. An infrastructure / construction initiative should have been passed by the U.S. Congress a decade ago - - the nation's infrastructure [bridges, roads, mass transit systems, schools, hospitals, parks] is in that poor of a condition. Sen. Obama's plan represents only a modest start on that rebuilding effort. The energy program also has merit, given the need to develop cleaner energy sources in the decade ahead. [Note: More on Obama's federal government revenue plan, later.]
Political Analysis: After months of rhetoric, Obama is finally starting to talk about program specifics, which suggests the Obama campaign is increasingly confident it can hold its own against a Clinton strength - - namely, detailed program discussion/analysis and policy implementation. Further, the contours of Obama's ideology are coming into focus: Obama's campaign is increasingly striking populist, liberal activist-government cords. It's a philosophy that views government as an agent of good - -what political scientists and economists call the positive state - - and one that simultaneously enhances conditions for sustainable private sector economic growth.











Reader Comments (Page 1 of 1)
2-13-2008 @ 9:32PM
TX CHL Instructor said...
Obama (like Hillary, like McCain) will say ANYTHING to get elected. The end of the republic is at hand, since the populace has learned that it can vote itself the proceeds of the general treasury.
The only candidate that had any interest at all in restoring the US to a constitutional republic never stood a chance.
2-13-2008 @ 10:53PM
al pambuena said...
obama has the same idealist ideas that ted kennedy has. improve those problem areas with increasing the size of the government, create new agencies that you will never get rid of, dump billions into the global warming hoak, instead of drilling for oil in the united states, and off shore, and build nuclear power plants.
2-14-2008 @ 1:14AM
Stew said...
Who wrote this article? Someone on the Obama campaign staff? At least some specifics of an Obama adminisration are starting to be mentioned: ending the war (how and when Senator?); tax the rich and business (this appeals to the ignorant); taxing "carbon" polution (I still don't know what that is or how you tax it).
If Obama is elected and we have a Dem Congress, (both are a very real possibility) all I can say is "head for the hills."
2-14-2008 @ 6:24AM
TX CHL Instructor said...
At this point, it doesn't really matter which of the leading candidates get elected. The populace has learned that it can vote itself the proceeds of the treasury. McCain is a Liberal RINO, Monica's Boyfriend's
Wife is just a power-mad hypocrite, and Obama is a Socialist. The only good choice for president doesn't stand a chance because he won't promise all the goodies.
2-14-2008 @ 2:07AM
matt said...
Are you two first posters crazy? Did you just forget that someone who is a republican just proposed the biggest federal budget ever? Didn't he and a REPUBLICAN congress pass tons of bills that did nothing but spend on useless pork projects? At least this is BENEFICIAL to the economy.. over the last 6 years corruption has been pretty damn out of control with people passing the spending bills also on the same committees that do investigations on stuff like that. Maybe people who haven't become drunk with power or believe that, as you seem to believe, all the problems in this country is due to democrats. The last 7 years prove otherwise... and all of a sudden its like Hilliary and Obama were running the country during this time.
It doesn't matter anyway, they'll be some new way to discredit what I'm saying and your side does no wrong. Blind by your own beliefs you're echoing the same crap that's said over and over again on the conservative side without any basis in reality.. the echoing is proof enough that you're not a person who makes up their own mind and merely latching on to others beliefs in which you've identified your self as being. Great way to fit in with family and probably your community... but it does this country no good.
2-14-2008 @ 2:09AM
matt said...
Might I add that people exist on all "sides" of the political spectrum, but for some reason when its on the conservative side it seems to be especially hypocritical.
2-14-2008 @ 2:11AM
matt said...
er.. sorry exist on all sides of the political spectrum who are like you: unthinking and echoing the same stuff you hear by people whom which you have ingrained into yourself that you are one of. There's no critical thinking at all.
2-14-2008 @ 7:56AM
Michael Schneider said...
I think there should be some concern with the thought that billions of dollars will magically appear for the next President to spend if the Iraq war "ends." In the days of the Vietnam War (which was a substantially worse situation than Iraq) people often made that argument. The problem is that when we pulled out of Vietnam there wasn't a huge windfall. Instead, as I recall, the country was in economic trouble with rising inflation and economic stagnation and also rising oil prices. And the national debt was exloding. We already were spending huge amounts on the war on poverty and on Vietnam. We didn't have to worry about homeland security much in those years. Moreover, even if we pull out of Iraq we still have a war in Afghanistan and a need for heavy military spending.
2-14-2008 @ 8:55AM
Stephen said...
I think we should tax the "die-hard" Republicans in this country 80% of thier income to pay for the bombs, bullets, and bridges in Iraq. That way, the big mouthes that say "kick a--" can pay for it also. Put your money where your mouth is - Repubs. Change is a comin'
2-25-2008 @ 7:02PM
jungllady said...
Well if you tax Republicans for arms then you should tax Democrats 80% for welfare and we would be even!!!
2-14-2008 @ 9:19AM
JCastr1336 said...
I have been around for approx 50 plus years....I have seen many changes in the world. It is event that to a point, no matter what the public feels, sees, or does, votes, lives, this world is in an ever changing status and I don't know that we have any control over what is going on. I pray to this worlds higher, and I mean higher power to help direct this world and its people all over the world in it. I just wish for a while we could all live in peace and the suffering stop. The pointing of fingers as to who created what to stop. Is maybe what going on setting a trend for our childrens future and there childrens futures?....I hope that maybe by a large, and I mean a very large chance that the next administration try, all sections of our US government try to make the necessary changes for the world at hand. But on the other hand all of our candidates are people with plenty of funds....so how can they even begin to understand the real working class, lower class, middle class population......someone answer that. Thank you for allowing me to voice my short opinion.
2-14-2008 @ 10:05AM
uniteusnow said...
Obama's economic program, shows sound
judgment and widsom.
Creating 2 million jobs to improve our infrastructre will help plenty of families, and the businesses though families spend money.
Concurrently it will increase tax revenues and expand the tax base. This will reduce the the deficit and interest paid out to foreign countries.
2-14-2008 @ 11:40AM
FRANK said...
ONE NOTE, IF WE ALL HAVE JOBS. THE GOVERMENT GET IT'S TAX MONEY. NO JOBS, NO MONEY.EASY MATH.
2-16-2008 @ 8:31PM
cpick said...
People are underestimating the potential danger the economy faces period.
Falling house prices combined with the cost of living increases will take down consumer spending and cause employment levels to fall (and this is a re-inforcing cycle) also note i don't cite unemployment numbers because those do not include those who have stopped looking for a job (they are considered to have dropped out of the work force, nice way to politicize a statistic).
We absolutely need a gov't jobs program to be developed NOW, not when people realize that it was worse than they thought. How will it be paid for? let's see the same way the gov't funds iraq attack ( "war") sorry sheeple, not that i think securing recources for the future is a bad idea, it's just the propoganda behind it is a bad joke. It will be paid by increasing the deficit, as usual. Better to go in more debt to fund something that will actually produce something tangible in the economy, no? Obama's Plan if he has the will to implement it will be a building block for a country that is on the verge of getting a reality check.
Makes a little more sense than mailing people a 500$ check, wow.
Aren't you glad we have a central bank, so they we can go into debt and pay intrest on it, when we could have printed the money (and even with inflation) stayed out of debt. although no gov't has ever paid it's debt back in full.
4-08-2008 @ 12:21PM
Mozelle said...
Obama is proposing what Hillary already said she was going to do a year ago.... lol.
He stole her idea and speech, lol.
Great leader! lol. Great thinking!
No matter! Congress and the Senate run this country! They are the ones that VOTE yes or no on all matters concerning this country.
Blame them for the sorry state of our economy!
All new construction jobs created will go to Mexicans anyway. All illegal! They dominate construction in this country! Millions more will flock to this country! The money will go to Mexico! lol.
This country messed up big time. Instead of Congress raising the minimum wage, year after year, for inflation like they should have...(keeps prices up, and American companies working) they did nothing!
They in fact made it easy for companies to manufacture cheap stuff overseas to keep from paying the American worker more in wages!
American companies care nothing for Americans....They only care about money!
We must all stop buying made in China to turn things around!
Obama or Hillary should bring back our factories from China....Our jobs back from India...And real people on Phones when we call a company! By doing this they will create even more jobs! :)