Pres. Elect Obama’s Economic Plans – How Do They Affect You and the Nation?
By Randall | November 6th, 2008 | Category: Economic Crisis | 4 comments 954 views | 4 Comments » |
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Now that Pres. Elect Obama is done with the election, with a decisive victory, control of both the House and the Senate, what is in store for the country?
We still have a little over two months before he officially becomes president. With that kind of available time, there’s still significant things that can happen before he comes to office.
Second Economic Incentive Program – There are still rumors going around that Pres. Bush will implement a second stimulus package before Pres. Obama comes to office. Since Pres. Obama already supports this initiative, it’s a very real possibility. The stimulus package itself is rumored to focus on national infrastructure improvements, as well as direct support for taxpayers. As time winds down, we’ll see if this package materializes.
The First 100 Days
During his first days in office, it’s likely he’ll be presented with some bills that didn’t pass his predecessor. For example, some variation of the SCHiP (State Children’s Health Insurance Program). Speaker Nancy Pelosi has already stated that she plans to reintroduce legislation for covering children’s healthcare as one of the first bills presented to the new President. This would probably be a small but concrete step towards supporting what Pres. Obama said is one of his primary points (Healthcare Coverage).
I expect that the economy will be a huge focus for the early part of his term. He will need to act decisively while he has the will of the people, and the good will of his own party available to him.
Short Term Initiatives
Moratorium on Foreclosures – It’s highly likely that he will impose a 90 day moratorium on home foreclosures, allowing homeowners to stay in their homes longer. This would be only a temporary measure, but it would allow a further thawing of the credit market, and give the government time to formulate a longer-range solution.
Tax Cuts, and Reversal of Bush Tax Cuts – Another likely action is implementing his planned tax cuts for the middle class. These tax cuts would not raise taxes on anyone making less than $250,000 per year, but would be focused at getting more money back into the hands of the middle class. For those in the top 2% of the earnings brackets, he would be rolling back the Bush Tax Cuts, increasing taxes to their previous levels.
U.S. Auto Industry Loans – Like it or not, there’s a real possibility that the next administration will have to continue the support of some of our ailing industries. The next one that seems to be a target for capital investment is the auto industry. With Chrysler and GM in such a down economy, and losing money at a rate never before seen, there’s not much choice in the matter. It’s either support them until they can re-tool to newer, more gas-efficient vehicles, or take the hit of tens of thousands of jobs being cut. That big a blow to an already reeling economy could throw it into a huge tailspin, taking years to get out of.
Pres. Obama’s Economic Changes
Even these concrete economic steps aren’t going to have an instantaneous effect on the economy. It took years to get into this shape, and it will likely take years to get back out. In the meantime, a fiscally responsible, but supportive policy is what we need to re-invigorate our economy, and by extension, the world economy.
As Pres. Obama has to make harder and harder choices, he’s going to lose some of the goodwill he’s acquired during the campaign. Even in his acceptance speech he noted that it’s going to be a long fight.
“The road ahead will be long. Our climb will be steep. We may not get there in one year or even in one term. But, America, I have never been more hopeful than I am tonight that we will get there.”
From Pres. Elect Obama’s Presidential Acceptance Speech
The road will be long, but at least it sounds like we’re getting off on the right footing.
Do you think Pres.Elect Obama’s plans are going to improve our economy? Leave us a comment and let us know.
Some of my Blogger friends, with comments on the Obama Presidency
- How President Elect Obama’s Administration Will Affect Your Finances - CashMoneyLife
- The Economy and a Barack Obama Presidency. – Yielding Wealth
- Get Over It: 10 Challenges President Elect Obama Faces Going Forward – The Wisdom Journal
- President-Elect Obama’s Approach to the Economy – Consumerism Commentary
- Now That Obama Has Won, What’s Next?. – Bible Money Matters
I would point out that whatever governments do they can’t fix a resession. They can only decrease the depth and maybe the length of one. Then wait for the market to turn around on it’s own.
Simons last blog post..Best Flash Drive
I like what I am hearing so far concerning President – Elect Obama’s plans to improve the economy. I feel confident that the people that he has and will continue to consult with are experienced enough in this area to give him the straight facts on which he can make a decision. Although I am new on My Investment Journey and still learning; I am a little concerned about are current and proposed stimulus packages and that they may, in time, create more inflation and more problems for the economy. Again, I’m still learning. There are a few videos posted on my blog with Jim Rogers and I find his thoughts about stimulating the economy; interesting. When you get a moment; check it our and let me know what you think.
My thoughts about current proposals are simply this. I think a moratorium on home foreclosures is a great idea. But is 90 – days enough? Facing a possible foreclosure is a very stressful ordeal. And, the truth of the matter is that if someone is facing foreclosure, there is a very good possibility that they are also facing other life changing ordeals as well. Jobless, Serious Illness, Divorce, Depression, and a host of other trials that make it very difficult “to focus” on dealing with a pending foreclosure in just 90-days.
Tax cuts; I’m all for that!
Aiding ailing industries is something that I don’t fully understand. On one hand, I feel that it is most important to analyze (Six Sigma anyone?) the root causes of these problems and put solutions in place to address these root causes. I don’t think I hear much talk about that. Isn’t there a saying about throwing good money after bad? In the long run, where will it take the economy to just “bail out” but not address the root cause? Also, how are the taxpayers re-imbursed for bailing out failed companies? And I am really thinking about the taxpayers who are just barely making it themselves? Again, still trying to understand this. I wouldn’t want to see thousands of people lose their jobs and I understand that that is what would happen if there was not bail out. I’m still learning. Thanks for listening. Be well.
Alisas last blog post..Will You Be Apart of the Change in America?
@Simon. I don’t think any reasonable person is expecting a magic wand being waved or anything like that. We’re in this for the long haul, but hopefully going in the right direction to get us out of this recession as quickly as possible.
@Alisa. A lot of the proposals are the ‘I hope this works’ type, because no one’s ever really dealt with something like this before. There’s good reasons (at the time) for doing everything they’ve been doing, that might be looked back upon by history as completely wrong. 20/20 hindsight is a nice thing to have, but we’ve got to try to move forward. I’m not a big fan of bailout either, but I look at it like this “What does the LEAST damage?” Would letting possibly two of the ‘Big Three’ automakers go under be more damaging than giving them loans until things stabilize? I think most are leaning towards that direction, even if it sets us up for a LONG payback and recovery. At least the patient is still alive until they start to get better.
If the automakers were to go under, it’s tens of thousands of jobs there, plus the auto parts companies that depend on them, plus the car dealerships, plus, plus, plus,… It’s a chain of events that can cause more damage than just paying to keep them around. Now if they can just tie some mandated improvements in management, gas-efficiency in vehicles, and process improvements for thei companies, that would at least be a step in the right direction.