CE Week #15: “Obama outlines spending plan”
Program focuses on infrastructure, modernizing public buildings
WASHINGTON – On the heels of more grim unemployment news, President-elect Barack Obama on Saturday offered the first glimpse of what would be the largest public works program since President Dwight D. Eisenhower created the federal interstate system in the 1950s.
Obama said the massive government spending program he proposes to lift the country out of economic recession will include a renewed effort to make public buildings energy-efficient, rebuild the nation’s highways, renovate aging schools and install computers in classrooms, extend high-speed Internet to underserved areas and modernize hospitals by giving them access to electronic medical records.
“We need to act with the urgency this moment demands to save or create at least 2 1/2 million jobs so that the nearly 2 million Americans who’ve lost them know that they have a future,” Obama said in his weekly address, broadcast on the radio and the Internet.
Obama offered few details and no cost estimate for the investment in public infrastructure. But it is intended to be part of a broader effort to stimulate economic activity that will also include tax cuts for middle-class Americans and direct aid to state governments to forestall layoffs as programs shrink.
House Speaker Nancy Pelosi, D-Calif., has called for spending $400 billion to $500 billion on the overall package. Some Senate Democrats and other economists have suggested spending even more – potentially $1 trillion – in the hope of jolting the economy into shape more quickly.
On Friday, the government reported that 533,000 jobs were eliminated in November, the largest one-month drop since 1974, raising unemployment to 6.7 percent. And last week, the National Bureau of Economic Research officially declared that the country has been in a recession since last December.
Republicans in the House oppose Obama’s plan, saying they favor a series of tax cuts that they say would put money in people’s pockets and encourage businesses to expand domestically.
Democrats said that even if a recovery act quickly passed the House early next year, it could take longer in the Senate, where fiscally conservative Republicans have expressed concern about adding to the soaring deficit with a massive new round of government spending. Even with at least 58 Democratic votes in the new Senate, Republicans could easily hold up a final vote, they said.
In his address, Obama offered the first outline of how he wants to direct the public works spending.
The largest share would go to roads and bridges and could be used to accelerate long-delayed repairs and expansions. Responding to concerns that new transportation money might be caught up in red tape at the state level, Obama said states must quickly invest in road and bridge construction and repair or lose the federal dollars.
Obama would also direct a “massive effort” to make federal buildings energy-efficient by replacing aging heating systems and installing efficient light bulbs. Obama said the effort to “green” the federal government would save taxpayers billions.
Much of the public works program would be aimed at improving technology. The government would pay for new computers in schools, new medical technology in hospitals and doctors’ offices, and a nationwide push to bring broadband to parts of the country that cannot yet access the Internet at high speeds.
I thought we had made significant progress when gas prices started dropping recently (I’d say the average around here is about $1.64 per gallon), but there’s so much more to the economy. Obama’s plan will draw attention to public transportation systems, school remodels, building renovations, and medical field advances. The plan sounds pretty good except for the fact that “Obama offered few details and no cost estimate for the investment in public infrastructure” (Michael Shear), although it’s a step forward since he’s not even in office yet, so he can’t put his plan into effect for a little less than a month. Since it was announced a while ago that the country is indeed in the midst of a recession, it’s no surprise that Obama has presented Americans with this economic plan. What did surprise me, however, was the great amount of emphasis Obama is placing on technology advances. I guess these changes will help in the end, though, since they will help with the medical field. There’s still a lot of hype about fuel-efficient cars, and I’m really excited to see where this issue goes from here. People may pay less attention to the topic nowadays since gas prices have lowered, but I know experts and researchers are still working hard to find the ultimate “cure” for our energy-transportation problem.
Connection: FDR’s “fireside chats.” When the country was suffering through the Great Depression, FDR was there to comfort the American people by delivering convincing and personal speeches on the radio. Obama is doing a similar thing these days by delivering weekly addresses during this time of national recession. Hopefully, Obama will be just as successful as FDR was at relieving the people’s fears of total economic meltdown. The voters seemed to be pretty confident of his abilities, so now Obama is simply racing against the clock (even though the re-building process could take much longer than four years). “In his address, Obama offered the first outline of how he wants to direct the public works spending” (Michael Shear).
I’m sure conservative congressmen are all up in a huff about this one. Big government involvement in the economy is exactly what they are against. The fact that they are out-numbered in the House of Representatives doesn’t help either. It is not a good time to be a conservative right now.
Barack Obama has some very interesting ideas for the future and how we can recover from the recession that we are apparently in. It is true building up infrastructure will create lots of jobs (2 million) and fixing aging schools, rebuilding highways and equipping schools with high-Tec technology are all really good ideas. However it is necessary to consider whether or not this is the right time to be doing all of this. People are losing their jobs and are keeping their wallets closed as a result of the staggering economy. Any federal bill passed by congress to distribute new computers or fix local roads comes from the tax payer’s wallets. For the bill to be passed tax payers have to approve it. Maybe I am missing something. Maybe the government can just use tax payer’s money without approval, but I don’t think so. This being said, how is there even a foundation for Obama’s plan. It will be enlightening to see what the total estimated cost of this infrastructure plan will be. Nancy Pelosi estimated 400-500 billion dollars…that is a lot of money.
Connection: We have talked in class about how the Democrats are going to have the majority in the House for the next couple of years. This is a good thing for them because maybe they will get a lot of bills passed which democrats favor. However it is also a perfect example of how our bicameral legislature system is supposed to work. A bill won’t pass as easily in the Senate because it is more balanced and if a bill needs both the approval of the House and the Senate, then there is the perfect balance of power.
I do hope for America and our next President. If the Democrats and Mr. Obama are able to turn our country around, then they deserve to be reelected. Right now our country is in a time of economic recession, two wars, and high unemployment. I don’t care who gets us the heck out of recession as long as it happens. I think that’s how most Americans feel. Again, if Mr. Obama is successful with his new plans I’m positive he will be reelected in 2012 if he decides to run again. The spending plan at point here is very interesting. It sounds like a great plan, but how can we keep on cutting taxes and yet spend more? I realize the middle-class needs a break financially, but how can we do it? This works program sounds great, but spending all this money will mean we need more money. Hopefully, that money comes without borrowing even more money from China and other countries. If that does happen, this is not the change Obama has promised. Unfortunately, there are no right answers to fix our economy and other national issues – just differing opinions on how to do it. But please Mr. Obama, change something. That’s, after all, what got you the election – along with the media of course!
Connection: This relates to unification in the country. I would also consider the last election to be a critical election, given the amount of power the Republicans lost and the amount the Democrats gained. Everyone wants the economy to get better. Everyone wants unemployment to go down. It’s just how to accomplish that that makes the difference. Change and hope seem to be words of joy this holiday season. Let’s sure hope so. I hope that Mr. Obama can change the country around. But we’ll see.
I’m not so excited about the highway improvements part of the plan, only because I know that in Spokane it takes a lifetime for one intersection to even get fully completed (highway 2 and Farwell rd). But the rest of the plan sounds like the best way to help improve the economy. Going green often saves billions of dollars. Plus, accomplishing better technology in the education system and in hospitals would ensure a proper future for students and more efficiency in providing better healthcare. As of 2010, all incandescent light bulbs in Australia will be replaced in order to go green, and if all of Europe was to replace its incandescent light bulbs, they would save 10 billion Euros each year! We should be doing the same thing or something similar. As far as the economy in general, yes, the costs are large, and jobs are scarce, but if confidence is restored than the economy will follow. As of right now, literally, on NBC news a national survey revealed that 64% of people would gladly take a pay-cut if it meant keeping their job, helping out the economy, and funneling money back into the market to ensure the confidence of succeeding the recession. There are thousands of ways to save money and to save jobs. We just have to think of the ways to do it first and truly believe that things will get better. The more money that is funneled around through customers hands and businesses, the more the economy will increase and bring jobs back again. The Obama spending plan may take a while to improve things, but it will bring money, employment, proper education, and improved technology.
Connection: The Economy and the Stock Market/business cycle-
We have discussed in class earlier this year that the stock market fluctuates all the time. One day the stocks may make us all millionaires and the next day it can drop to rock bottom. Right now, our economy has officially hit the recession mark and has decreased for 2 continuous quarters. Jobs have also reached a 6% unemployment rate, and the general status is that our economy has gone down the gutter-preventing consumers from purchasing items. The only way our economy can improve at this point is to funnel around more money, which will increasing the DOW, which will increase a person’s chances of putting more money back into the market, and so on until our economy is seemingly “back on top” again. The business cycle will continue on just as it always does.
Fiscal republicans are so stupid. Well, perhaps that label is slightly unfair…fiscal republicans’ typical economic strategy will not, currently, provide national economic satisfaction. In other words, tickle-down economics has previously (in times of economic prosper: 1960s, 1990s) complemented and replenished our economy; now, that tactic would deepen the hole that is the United States’ debt. At this point, I don’t think there is a tax cut significant enough to “encourage businesses to expand domestically” and “put money in the people’s pockets.”
But, despite the fact that our nation’s current situation reveals emotional pessimism and financial vulgarity, hope lies in the opportunity to act against our current burdens. Hope demands the United States of America to reform, to flexibly bend and reflect a shape that is the people, that is for the people, and which is created by the people. Obama seems to understand basic elements of hope…which is typically an area where fiscal republicans fall short. Therefore, I am thankful for democratic dominance in the House! May Obama’s “massive effort” reload the economy and amplify hope.
Connection: Divided Government (period lasting 1960s- now. Usually republicans are the party in power, and democrats rule the house)…is over come inauguration day. Now, the democrats will rule the white house, Senate, and House of Representatives. Now, democratic interest will, more easily, become policy.
I’ve got to admit, I’m starting to like this guy. I am not an economy expert, or pundit, but I would say this plan sounds pretty picturesque. Then again, I always have been a dumbie for a picture perfect idea. Truth is Obama is trying to change things, which at this point, I think we all need. I for one completely agree that our highways and roads need some serious attention, and if you disagree try driving a small car down almost any side street in Spokane. Putting people to work is one of the best things for the country at this point, especially since 533,000 people lost jobs in November alone. By making energy-efficient buildings we are not only saving money, but getting the ‘tree-huggers’ to lay off a bit. The only part of this plan that sketches me out is the fact that “Obama offered few details and no cost estimate for the investment in public infrastructure.” That kind of throws up a red flag in my mind, but let’s see how this plan develops. As I stated earlier, I’m not an economist or anything like that, but I have no problem with trying something new. President-Elect Obama is trying, and when somebody is thrown into a mess like this, that’s really all he can do.
Connection:
All semester we have been talking about the economy. In fact, that and the presidential election have probably been what we’ve talked about the most. When Obama ran for President he said he represented change, and frankly, this is some kind of change. It may not be the kind of change people expected, but hey, it’s a start.
In some ways, this article shows exactly what I like about Obama. He honestly cares for the general public. Instead of saying that he is going to use large sums of money to bail out the banks or help out Wall Street, he says that he is going to “renovate aging schools and install computers in classrooms, extend high-speed Internet to underserved areas and modernize hospitals. “ All these things help out not only our country, but take care of our citizens. I think that it is so sad that 533,000 jobs were lost in one month!! Maybe this is the result of the aging schools around our country. If Obama could modernize our schools with the proper teaching tools, maybe a simultaneous bi-product would be an increased employment rate. I also believe that Obama’s idea to make federal buildings energy-efficient is a great way to not only save these company’s money, but to also help the environment. Think about how many federal buildings there are and how much energy just one of them wastes a day. It seems like Obama literally wants to get rid of the old and bring in the new. This public works program seems to be just the thing the country needs.
Connection:
We’ve talked in class about how it is good for there to be a mix of Republicans and Democrats so that there are different ideas about how to fix our problems. This article talks about how the Republicans don’t like Obama’s idea, how they want more tax cuts. Although Obama might not take their advice, at least he always has a differing opinion.
The fact that Obama is trying to ease tension about the economy is awesome. Hopefully this shows how he is going to do while he is in office. Obama gave us tidbits of information about his spending plan and I found what he gave us to be reassuring, except for the projection of cost given to us by Nancy Pelosi. Isn’t the country already in debt? How can we get out of this when we are simultaneously spending billions of dollars and making tax cuts? That doesn’t seem like a good thing to me.
I found that the best part of Obama’s plan was the increase in technology. I think we will be able to use this to educate people who will in turn make better decisions and improve living in the country. I think technology is important if we are going to continue to fulfill our role as a superpower. I also like the improving transportation part of the plan. I don’t like driving on crapy highways. Improving the highways will improve the flow of traffic and maybe even ease tension on a commute. I really like the spending plan Obama has laid out for this country, I just hope it doesn’t come with enlarging the country’s debt.
Connection: I can connect this to FDR’s “Fireside chats.” Even though Obama isn’t president yet he is still trying to comfort Americans with weekly addresses. This is a really clever move I think. He is able to assure the American people while not trying to be the nation’s second leader. This shows how he will be able to bring hope to the country when he is president.
In response to Bruce:
Uh. The last time I checked, the national debt was what us as Americans, American. What would we do without the constant and unrelenting burden that we continually shove aside and ignore? I rather think we wouldn’t know what to do. So really, even if Congress succeeded in spending such moneys, we’d know that it’s going to make us more American. Besides, according to Obama, the money is going to places that would benefit a whole lot of people. Perhaps those people, in return, would get somewhat successful in the job market and decide that they wanted to pay back Uncle Sam for his generous services. Oh, and on top of that, suddenly decide that debt is a huge waste of time that frugal living is the way to go. Seem impossible? Well, it is.
Though the idea of a better infrastructure does pique my fancies. I wouldn’t mind the flow of traffic being increased in order to get rid of, or at least decrease, the effects of rush hour and the such. Also, better roads would be better for gas and maintenance. The less bumps there are, the happier you and your pocketbooks will be. Plain and simple.
Connection: All that Obama is doing now reminds me of only one thing: FDR’s New Deal. Back in that time period, people found it rather inspiring that the president would care so much for them as to create loads of new jobs building things the country needed or could culturally benefit from. I know Obama is sort of tapping into this legacy because he knows of its success before; he knows that this is what the people really need right now. I wish him luck, though if luck were really on his side, World War 3 would break out, and the US would be boosted even higher than they were for its predecessor.