Obama's Economic Plans

According to an article by Ann Sanner from the Associated Press, President-elect Barack Obama’s massive “public works plan” will focus on creating jobs, providing energy-efficient programs and investing in education. Obama will face a challenging task of generating new jobs and dealing with the economic crisis. Sanner showed that the Labor Department marks 533,000 job cuts in November. An article by Peter Nicholas and Janet Cook from The Los Angeles Times stated that the unemployment rate is now at 6.7 percent, the “highest” level in “15 years.” The article discussed how Obama and his team have been meeting with a variety of interest groups to develop his program, including representatives of Governor Arnold Schwarzenegger to discuss ways to improve California’s infrastructure. According to an article by Peter Baker and John M. Broder from The New York Times, Obama plans “the largest public works program since the interstate highway system.” The article stated that Obama is considering introducing “new-era jobs in technology” that are creative and efficient. Moreover, Obama hopes to improve “public utilities,” such as transportation and technology in schools, as well as create a “cleaner environment.” The cost of the programs could amount from $400 to $700 billion according to experts, and with the nation already with a “federal budget deficit” that could amount to “$1 trillion,” some economists and Republicans are wary of Obama’s plans. However, Obama stated that the money for the programs will be handled efficiently and responsibly with a ‘“use it or lose it strategy.”’

Started in '07, End in '09?

According to the National Bureau of Economic Research, the US economy has been in a recession since December 2007. Many economic experts have claimed that the recession will run at least deep into 2009. It is the worst recession since the 1980-1981 one.

President Bush, who formulated a $700 billion rescue package, has said that he will continue to use government intervention if it will help end the recession. An apologetic Bush expressed remorse for the economic downturn since it happened on "his watch", but wanted to stress that many of the failings were due decisions made on Wall Street almost a decade before he assumed the presidency. President Bush has been working keenly with President-Elect Obama on many issues, especially the economy, in hopes that Obama's transition will be a smooth one and that Obama will be ready to tackle the current crisis.

In more local news, Governor Schwarzenegger has declared a fiscal emergency in California, and has worked with state Democrats to develop a plan of tax hikes and spending cuts, but face stiff Republican opposition to the proposed rise in taxes. Seeing how the Democrats don't control the necessary two-thirds in the State Senate or Assembly, it will be tough to compromise on a plan to rescue the state from its current $11.2 billion deficit. 

Black Friday: Let the Holidays Begin

An article by Peter S. Goodman from The New York Times discussed how the “trampling” of a “Wal-Mart employee” by a crowd of shoppers speaks not only of the negative aspects of consumer culture, but also illustrates the economic difficulties of some Americans. Goodman compared the “American economy” to a “piñata,” because the goods are tantalizing the shoppers when in reality, they are unavailable to some Americans. Goodman stated that the feeling of inaccessibility creates a “frenzy” that is evident in the stampede of restless shoppers and the death of the worker. At the same time, an article by Steven Malanga from Real Clear Markets talked about “The Wal-Mart Effect,” indicating that Wal-Mart’s popularity among consumers stems from its successful business strategies. According to Malanga, economic experts, including Obama advisor Jason Furman, have recognized the chain’s “economic progress.” Malanga suggested that other companies could use a lesson from Wal-Mart.
“Black Friday” is ironic in its name because it goes beyond its original association with big sales for businesses, reflecting the harsh economic reality of some Americans. The people who are lining up at dawn in order to scout the sales rackets and get “the deals” are the ones who are the most affected by the economic crisis. An article by Andrea Chang for The Lost Angeles Times stated that consumers are more “cautious” about what they buy this holiday season because they are worried about “job stability and mortgage payments.” According to Chang, the “retailers” are facing more pressure to present better discounts and lower prices in order to attract consumers. An article from The Arizona Republic stated that this year, “sales prices weren’t enough,” and businesses have to take into account other strategies, such as “impulse purchases.”

Dear Obama

An overwhelming number of college students did their part and turned out at the polls to help you achieve an impressive victory, but we have some important expectations to ensure the favor is returned. Your official plans regarding funding for college education involve simplifying the application process for financial aid and creating a $4000 grant to be given in exchange for community service. You have claimed that this will go to “most” Americans, but you have not been able to give specific information as to where the cut off actually will be. As it stands now, there are many families who fail to qualify for any sort of federal grants towards college, but also struggle to finance their children’s education. Will this grant truly expand college opportunities or is it simply a modification of the system in place already?

It is also still unclear when this grant will be made available. With the economy continuing to decline, public education will be hit hard. We are aware of the work you have done already, in the senate, but the trend has to continue. The simplification of the financial aid system, as well as the establishment of the grant should be in place by the 2009-2010 school year.

New War?

There is a huge crisis going on in the Republic of Congo right now. CNN recently reported that Jaya Murthy, spokesman for the U.N. Children's Fund in Goma, said that 1.1 million North Kivu residents -- about 20 percent of the population -- have been displaced in violence since December 2006. The UN is warning the high risk of death for several children that will be affected by malnutrition, malaria, and respiratory infections. The UN is making attempts through helicopter to deliver milk to several of the hungary children, but it is very difficult. The international community has committed to sending the over 3,000 troops needed in the area, but no one country is taking responsibility for delivering those troops yet. Question is, what should the United States do about this? Should Obama commit to helping the atrocities happening in the Congo? As much as we need to work on our own economy, doesn't millions of people dying and being displaced take a little precedence? Even if its not in our country? There are several interesting articles about this topic in the Economist and New York Times if you want to check them out. The Economist especially had a good one called "What the Congo means for Obama."

Is Obama Leaning To a Republican Candidate?

According to CNN, Obama is getting advice from former national security adviser for the Bush Administration, Mr. Brent Scrowcroft. Shocking? Not anymore after knowing that Obama started talking to him before he was selected for president elect. When asked if he shall choose to select republicans in his cabinet, Obama commented, that he would at least choose one. May it be perhaps, that he already has a name to this Republican and it starts with a "B" and ends with a "t"? It would make sense, considering that Obama's aide quoted that the president-elect "respects and admires Gen. Scowcroft's bipartisan, pragmatic approach to foreign policy". He also opposed the war in Iraq. But will this seal the deal to remain in office?

Foreign Aid

Dear Barack,

You should increase US foreign assistance from $25 billion per year to ensure the US does its share to meet the Millennium Development Goals in your yearly budget. You may receive heavy criticism for this from Congress because of our ever increasing debt and financial crisis at home. However, doing this will signal to many of the most underdeveloped countries in the world that the United States wants to target new spending towards strategic goals, including helping the world's weakest states to build healthy and educated communities, reduce poverty, develop markets, and generate wealth. Foreign spending is always unpopular in America, but your best chance of passing this is while your popularity is high. That is not to say that you should not be focusing most of your attention on stimulating the economy, just that you need to keep in mind people are suffering outside of the United States too.