In the second installment of 2008 Elections Handbook, a series outlining the 2008 presidential candidates stances on issues key to college students, the spotlight is on Barack Obama's economic history and plans for the U.S. economy if elected president. 

In the first part of the 2008 Elections Handbook economic series, the Tennessee Journalist outlined Sen. John McCain's plans for the future of the U.S. economy, as well as a brief history of his economic legislation.

As with the rest of the series, the first half of each installment is the politician's self-described plan, while the second half will be detailed information about the politician's history on the issue. 

Check back soon for the economic postitions of leading third-party candidates as well as information about presidential candidates opinions about education, healthcare and the war in the Middle East are a few of the issues to be covered in the series.

Senator Barack Obama, Democratic Party

IN HIS OWN WORDS

RAISE THE MINIMUM WAGE

Barack Obama will raise the minimum wage, index it to inflation and increase the Earned Income Tax Credit to make sure that full-time workers earn a living wage that allows them to raise their families and pay for basic needs.

PROTECT STRIKING WORKERS

Obama supports the right of workers to bargain collectively and strike if necessary. He will work to ban the permanent replacement of striking workers, so workers can stand up for themselves without worrying about losing their livelihoods.

ENACT A WINDFALL PROFITS TAX TO PROVIDE A $1,000 ENERGY REBATE

Barack Obama will enact a windfall profits tax on excessive oil company profits to give American families an immediate $1,000 emergency energy rebate to help families pay rising bills. This relief would be a down payment on Obama's long-term plan to provide middle-class families with at least $1,000 per year in permanent tax relief.

SIMPLIFY TAX FILINGS

Obama will dramatically simplify tax filings so that millions of Americans will be able to do their taxes in less than five minutes. Obama will ensure that the IRS uses the information it already gets from banks and employers to give taxpayers the option of pre-filled tax forms to verify, sign and return. Experts estimate that the Obama proposal will save Americans up to 200 million total hours of work and aggravation and up to $2 billion in tax preparer fees.

Barack Obama believes that companies should not get billions of dollars in tax deductions for moving their operations overseas. Sen. Obama's Web siteEND TAX BREAKS FOR COMPANIES THAT SEND JOBS OVERSEAS

Barack Obama believes that companies should not get billions of dollars in tax deductions for moving their operations overseas. Obama will also fight to ensure that public contracts are awarded to companies that are committed to American workers.

BOOST THE RENEWABLE ENERGY SECTOR

The Obama plan will create new federal policies, and expand existing ones, that have been proven to create new American jobs. Obama will create a federal Renewable Portfolio Standard (RPS) that will require 25 percent of American electricity be derived from renewable sources by 2025, which has the potential to create hundreds of thousands of new jobs on its own. Obama will also extend the Production Tax Credit, a credit used successfully by American farmers and investors to increase renewable energy production and create new local jobs.

CREATE A NATIONAL NETWORK OF PUBLIC-PRIVATE BUSINESS INCUBATORS

Barack Obama will support entrepreneurship and spur job growth by creating a national network of public-private business incubators. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. Obama will invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.

ESTABLISH A CREDIT CARD BILL OF RIGHTS

Obama will create a Credit Card Bill of Rights to protect consumers. The Obama plan will:

• Ban Unilateral Changes
• Apply Interest Rate Increases Only to Future Debt
• Prohibit Interest on Fees
• Prohibit "Universal Defaults"
• Require Prompt and Fair Crediting of Cardholder Payments

OBAMA'S ECONOMIC TRACK RECORD

VOTED AGAINST LIMITING CREDIT TO 30 PERCENT, BECAUSE 30 PERCENT IS TOO HIGH

Clinton and Obama battled over their votes on bankruptcy bills and an amendment to cap interest charged on credit, at 30%. Obama claimed, "I thought 30% potentially was too high of a ceiling."

Obama did vote against--and Clinton voted for--an amendment that would have placed a 30% cap on the interest rate that could be charged on any extension of credit. The amendment failed by a vote of 74 to 24 in 2005. When the amendment came up for a vote, Obama was standing next to Sen. Paul Sarbanes, D-MD, the senior Democrat on the banking committee and the leader of those opposing the landmark bill, which would make it harder for Americans to get rid of debt.

As for whether the 30% cap was too high, that's certainly a matter of opinion. Sen. Mark Dayton of Minnesota, sponsor of the amendment, said on the Senate floor that such a cap "is still consumer abuse" but is much better than rates of more than 300%, which he said were being charged by some loan operations in the country.

Source: FactCheck.org on 2008 Congressional Black Caucus Dem. Debate Jan. 21 2008

 

 

BUSH DUG A BUDGET HOLE, IT WILL TAKE YEARS TO DIG OUT

Q: Would it be a priority of your administration to balance the federal budget every year?

A: Over the last seven years, what we've seen is an economy that's out of balance because of the policies of George Bush and the Republicans in Congress. Not only do we have fiscal problems, but we've got growing inequality. People are working harder for less and they're seeing costs go up. So what I want to do is get the long-term fundamentals right. That means that we are investing in education & infrastructure, structuring fair trade deals, and also ending the war in Iraq. That is money that can be applied at home for critical issues.

Q: So a priority to balance the federal budget, or not?

A: We are not going to be able to dig ourselves out of that hole in 1 or 2 years. But if we can get on a path of sustained growth, end the war in Iraq, end some of the special interest loopholes and earmarks that have been clogging up the system, then I think we can return to a path of a balanced budget.

Source: 2007 Des Moines Register Democratic debate Dec 13, 2007

 

REJECTS FREE MARKET VISION OF GOVERNMENT

In a 2005 commencement address, Obama described the conservative philosophy of government as "to give everyone one big refund on their government, divvy it up by individual portions, in the form of tax breaks, hand it out, and encourage everyone to use their share to go buy their own health care, their own retirement plan, their own child care, their own education, and so on. In Washington, they call this the Ownership Society. But in our past there has been another term for it, Social Darwinism, every man or woman for him or herself. It's a tempting idea, because it doesn't require much thought or ingenuity." Obama has rejected this free market vision of government, preferring to see the power of the state as something that can serve the public interest. According to Obama, "We're going to put more money into education than we have. WE have to invest in human capital."

Source: The Improbable Quest, by John K. Wilson, p.155 Oct 30, 2007
GOVERNMENT REGULATION NEEDED WHEN MARKET FAILS

In the era of George Bush's running up huge federal deficits, Obama advocated fiscal restraints, calling for pay-as-you-go government. He waxed on about the power of the free market to create wealth and change lives. From Promise to Power, David MendallIn the era of George Bush's running up huge federal deficits, Obama advocated fiscal restraints, calling for pay-as-you-go government. He waxed on about the power of the free market to create wealth and change lives. But he also had an afterthought on a market-based economy straight from liberal economist Paul Krugman: "Sometimes markets fail, and that's when labor laws and government regulation are necessary correctives." In other words, he was saying that capitalism is magnificent, but it does have its drawbacks. It would be hard for anyone to argue with such a balanced statement. "Obama figures out ways to present himself like a conservative to conservatives." Said [one advisor]. "He has the whole venture capital industry here in Chicago, nothing but Republicans, thinking he is their champion. He has supported entrepreneurship. It is a pro-growth message."

Source: From Promise to Power, by David Mendell, p.248-249 Aug 14, 2007

VOTED 'NO' ON PAYING DOWN FEDERAL DEBT BY RATING PROGRAMS' EFFECTIVENESS

Amendment intends to pay down the Federal debt and eliminate government waste by reducing spending on programs rated ineffective by the Program Assessment Rating Tool (PART).

Proponents recommend voting YES because:

My amendment says we are going to take about $18 billion as a strong signal from the Congress that we want to support effective programs and we want the taxpayer dollars spent in a responsible way. My amendment doesn't take all of the $88 billion for the programs found by PART, realizing there may be points in time when another program is not meeting its goals and needs more money. So that flexibility is allowed in this particular amendment. It doesn't target any specific program. Almost worse than being rated ineffective, we have programs out there that have made absolutely no effort at all to measure their results. I believe these are the worst offenders. In the following years, I hope Congress will look at those programs to create accountability.

Opponents recommend voting NO because:

The effect of this amendment will simply be to cut domestic discretionary spending $18 billion. Understand the programs that have been identified in the PART program are results not proven. Here are programs affected: Border Patrol, Coast Guard search and rescue, high-intensity drug trafficking areas, LIHEAP, rural education, child abuse prevention, and treatment. If there is a problem in those programs, they ought to be fixed. We ought not to be cutting Border Patrol, Coast Guard search and rescue, high-intensity drug trafficking areas, LIHEAP, rural education, and the rest. I urge a "no" vote.

Reference: Allard Amendment; Bill S.Amdt.491 on S.Con.Res.21 ; vote number 2007-090 on Mar 22, 2007

 

TAKE CHINA "TO THE MAT" ABOUT CURRENCY MANIPULATION

Q: You had said that if China is actually manipulating their currency, the US needs to "take them to the mat." What exactly did you mean by that?

A: We have legislation that says that if, in fact, they are manipulating their currency--and I think there's no dispute that they are--that we need to take strong action. It's in the Banking Committee. I will say that it's actually a blunt tool. I'd prefer not doing this legislatively. The problem is we've had a president that has shown no leadership on it. So when I am in the White House, I will meet directly with the Chinese leadership and indicate we have to restore balance. And, by the way, we have to mobilize our allies, such as the European Union, to have that conversation with us. This is an imbalance that is not good for any economy over time. It's not sustainable, the trade imbalances that we have.

Source: 2007 Democratic radio debate on NPR Dec 4, 2007

 

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Check back soon for the following presidential candidates economic plans: Libertarian Bob Barr, Socialist and Liberationist Gloria La Riva, Prohibitionist Gene Admondson and Green Cynthia McKinney. Upcoming series also include candidates' positions about

Also, be sure to do your own research for more detailed information about Obama's past regarding economic issues as well as the Senator's plans for the future.