Hillary Clinton's Economic Plan

By chance, I happened to watch two different network evening news programs Thursday night. Each had big stories about how we are facing a recession in early 2008.

I also caught the Republican debate in South Carolina. Every candidate was asked about it. They were all in denial.

Who's doing something about it? Hillary Clinton, who will announce an emergency spending plan today in California. The New York Times writes:

The Clinton package is to include $30 billion for an “emergency housing crisis fund” for states to help low-income families unable to make mortgage payments and in danger of losing their houses. Last year she proposed $5 billion for such a fund.

In addition, Mrs. Clinton’s package would channel $25 billion to help low-income families pay heating bills this winter, a tenfold increase of the existing federal program. Her proposal would also include $10 billion to extend unemployment insurance for people unable to find jobs.

For more details, see the Times article or this AP article.

Hillary is the first presidential candidate to come up with the plan. As the Times notes, others likely will follow suit.

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  • Display: Sort:
    Economic Plan (none / 0) (#1)
    by Angel on Fri Jan 11, 2008 at 07:23:01 AM EST
    This is the kind of "change" I'm looking for.

    it's......................interesting. (none / 0) (#2)
    by cpinva on Fri Jan 11, 2008 at 08:31:00 AM EST
    while i recognize it's but a skeletal description, i would hope that at least a part of the plan includes investigating the companies that helped contribute to this crisis, making billions of dollars in the process.

    the proliferation of "easy, no down payment" mortgages, inflated fees, no-confirmation applications, bundling high risk notes for investors schemes have all contributed, they are complex activities, lacking the 30 second sound bitedness of insider trading.

    geez, i never thought i'd suggest insider trading was simple to understand, by comparison to other financial schemes! oh, what a strange world we live in.

    a lot of "funny money" events have gone into creating the problems now erupting, like a pustule on the nation's skin. the bush administration has chosen to ignore them.

    paul krugman has written some pretty good columns addressing this issue, available on the nyt's archives.

    I realize it is a "plan" (none / 0) (#3)
    by Jlvngstn on Fri Jan 11, 2008 at 09:24:29 AM EST
    But it does nothing to stimulate the economy let alone help to repair it.  How is ANY candidate going to address record levels of debt by the gov't and personal debt?  This is a stop gap, much appreciated by those that are close to foreclosure, but it does nothing for the masses.

    What we need to see from the candidates is a job creation plan that will allow people to earn more income.  Credit crisis is to follow housing crisis, which will be followed by restructuring and layoffs.  I remember arguing just a couple months back with someone on this very site.

    Their argument that the economy is healthy seems rather ridiculous now. Perhaps there will be no recession, perhaps people will find bags of money under their porches and pay their credit down instead of buying more stuff that will end up in a landfill.

    What we need is economic stimulus through job creation.  I don't mind helping people not lose their homes, but this is not an economic plan, it is a social service plan.

    You need (none / 0) (#5)
    by Wile ECoyote on Fri Jan 11, 2008 at 03:18:11 PM EST
    to expand on why taxpayers need to take care of someones personal debt.  

    I hope she does have away to help all those (none / 0) (#4)
    by sarcastic unnamed one on Fri Jan 11, 2008 at 11:56:18 AM EST
    low income borrowers that got loans they couldn't afford due the initiatives of her husband and his HUD Secretary Henry Cisneros.

    Noble aspiration, that, increasing home ownership among low-income families, but they created a monster.

    From wiki:

    Role of government and regulators

    Some observers claim that government policy actually encouraged the development of the subprime debacle through legislation like the Community Reinvestment Act, which they say forces banks to lend to otherwise uncreditworthy consumers.[35] Economist Robert Kuttner has criticized the repeal of the Glass-Steagall Act as contributing to the subprime meltdown. [36] A taxpayer funded government bailout related to mortgages during the Savings and Loan crisis may have created a moral hazard and acted as encouragement to lenders to make similar higher risk loans. [37]

    In response to a concern that lending was not properly regulated, the House and Senate are both considering bills to regulate lending practices.[38]

    The Pander Bear (none / 0) (#6)
    by diogenes on Fri Jan 11, 2008 at 05:57:43 PM EST
    Giving away money isn't a plan.  It looks like she's again using the lessons from Bill, the first pander bear.  Does anyone still remember the "$1000 bond at birth?"