Issue #3

Today’s issue….The Economy

John McCain on the Economy:

We've laid a $10 trillion debt on our young people
Q: What's the fastest solution to bail people out of economic ruin?
McCAIN: We obviously have to stop this spending spree that's going on in Washington. Do you know that we've laid a $10 trillion debt on young Americans, $500 billion of it we owe to China? We've got to have a package of reforms and it has got to lead to reform prosperity and peace in the world. And I think that this problem has become so severe, that we're going to have to do something about home values.
OBAMA: It's not enough just to help those at the top. Prosperity is not just going to trickle down. We've got to help the middle class. Part of the problem is that for many of you, wages and incomes have flat-lined. For many of you, it is getting harder and harder to save, harder and harder to retire. Sen. McCain is right that we've got to stabilize housing prices. But underlying that is loss of jobs and loss of income. That's something that the next treasury secretary is going to have to work on.
Source: 2008 second presidential debate against Barack Obama Oct 7, 2008

I have fought against excessive spending my entire career
Q: Are you willing to acknowledge that this financial crisis is going to affect the way you rule the country, as president?
A: We have to obviously cut spending. I have fought to cut spending. We can adjust spending around to take care of the very much-needed programs including taking care of our veterans. A healthy economy with low taxes, with not raising anyone's taxes, is probably the best recipe for eventually having our economy recover. And spending restraint has got to be a vital part of that. One of the major reasons why we're in the difficulties we're in today is because spending got out of control. We owe China $500 billion. And spending can be brought under control because I have fought against excessive spending my entire career. And I've got plans to reduce and eliminate unnecessary and wasteful spending. If there's anybody here who thinks there aren't agencies of government where spending can be cut and their budget slashed, they have not spent a lot of time in Washington.
Source: 2008 first presidential debate, Obama vs. McCain Sep 26, 2008

Can't pass trillions of dollars of debt to our children
Government has grown by 60 percent in the last eight years, because the Congress and this administration have failed to meet their responsibilities. Next year, total federal expenditures are predicted to reach over $3 trillion. That is an awful lot for us to be spending when this nation is already more than $9 trillion in debt--or more than $30,000 in debt for every citizen. That's a debt our government plans to leave for your children and mine to bear. That is a failure not only of financial foresight, but of moral obligation. It won't be today's politicians who suffer the consequences. It will be American workers and their children who are left with worthless promises and trillion-dollar debts. We cannot let that happen. I'll order a top-to-bottom review of every federal program, department, and agency. We're going to demand accountability. We're going to make sure failed programs are not rewarded and that discretionary spending is going to essential priorities.
Source: McCain-Obama speeches at 99th NAACP Convention Jul 12, 2008


To avoid recession, stop out-of-control spending
Q: If we're talking about a recession in the next few months, in 2008, what kind of short-term, more immediate government fixes would you propose to try to keep the slowdown diminished or to reverse it? And would you support them even if they added to th government deficit?
A: The first thing we need to do is stop the out-of-control spending. Out-of-control spending is what caused the interest rates to rise. It causes people to be less able to afford to own their own homes. We need to stop the spending And the way we can get our budget under control is to have strong, fundamental fiscal underpinnings. The second thing that we need to do, of course, is stop spending $400 billion a year overseas to oil-producing countries that come right out of our economy immediately. Some of that money goes, unfortunately, to fund terrorist organizations. We've got to develop technologies to reduce this dependency on foreign oil, and eventually eliminate it, and stop this outflow of some $400 billion a year.
Source: 2008 GOP debate in S.C. sponsored by Fox News Jan 10, 2008


Barack Obama on the Economy:

When Bush came in, we had a surplus; now we have a deficit
Q: How can we trust either of you with our money when both parties got us into this global economic crisis?
OBAMA: I understand your frustration and your cynicism. Most of the people here, you've got a family budget. If less money is coming in, you end up making cuts. Maybe you don't go out to dinner as much. Maybe you put off buying a new car. That's not what happens in Washington. And you're right. There is a lot of blame to go around.
But I think it's important just to remember a little bit of history. When George Bush came into office, we had surpluses. And now we have half-a-trillion-dollar deficit annually. When George Bush came into office, our national debt was around $5 trillion. It's now over $10 trillion. We've almost doubled it.
And so while it's true that nobody's completely innocent here, we have had over the last 8 years the biggest increases in deficit spending and national debt in our history. And Sen. McCain voted for 4 out of 5 of those George Bush budgets.
Source: 2008 second presidential debate against John McCain Oct 7, 2008


Bush & GOP dug budget hole; need 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


Save $150 billion in tax cuts for people who don't need them
Every proposal I've put forward during this campaign we have paid for, and we have specified where that money is going to come from. Let's just look at our tax code because it's a great example of how we could provide relief to ordinary citizens who are struggling to get by. Right now we've got a whole host of corporate loopholes and tax havens. There's a building in the Cayman Islands that houses supposedly 12,000 US-based corporations. That's either the biggest building in the world or the biggest tax scam in the world, and we know which one it is. If we close some of those loopholes, we've put forward tax relief plans, that will not only restore fairness to our tax code, but it also puts money into the pockets of hard-working Americans who need it right now, who will spend it, and will actually improve our economic growth over time, particularly at a time when we're seeing a credit crunch. But it requires leadership from the white house that restores that sense that we're all in this together.
Source: 2007 Des Moines Register Democratic Debate Dec 13, 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


Sarah Palin on the Economy:

Predatory lenders got us into the housing crisis
Q: Who is to blame for the subprime lending meltdown?
PALIN: It was predator lenders who tried to talk Americans into thinking that it was smart to buy a $300,000 house if we could only afford a $100,000 house. There was deception, and there was greed and there is corruption. Joe Six Pack, hockey moms across the nation, we need to band together and say never again. We need to demand from the federal government strict oversight of those entities in charge of our investments and our savings. Let's do what our parents told us before we probably even got that first credit card. Don't live outside of our means.
BIDEN: Barack warned about the sub prime mortgage crisis. We let Wall Street run wild. John McCain thought the answer is that tried and true Republican response, deregulate, deregulate. And guess what? The middle class needs tax relief. They need it now.
Source: 2008 Vice Presidential debate against Joe Biden Oct 2, 2008


We should not reward poor financial decisions
Q: Do you support a moratorium on home mortgage foreclosures?
A: That's something that John McCain and I have been discussing. Some decisions that have been made poorly should not be rewarded. [Decisions by] consumers--and those who were predator lenders also. But again, it's got to be a comprehensive, long-term solution found for this problem that America is facing today. As I say, we are getting into crisis mode here.
Source: 2008 CBS News presidential interview with Katie Couric Sep 24, 2008

Taxpayers cannot be looked to as Wall Street bailout
Q: Both you and Senator McCain supported the bailout of Fannie Mae and Freddie Mac. You both opposed the bailout of government intervention as it relates to Lehman or Merrill. But now we read this morning that AIG is going to get some type of government bailout. Was that the right call?
A: Well, first, Fannie and Freddie were different because they're quasi-government agencies where government had to step in because of the adverse impacts all across our nation, especially with homeowners. It's just too impacting, we had to step in there. I do not like the idea though of taxpayers being used to bailout these corporations. Today it was AIG, important call there, though, because of the construction bonds and the insurance carrier duties of AIG. But first and foremost, taxpayers cannot be looked to as the bailout, as the solution to the problems on Wall Street.
Source: 2008 Fox News interview on "Hannity & Colmes" Sep 17, 2008



Firm believer in free market capitalism
I am a conservative Republican, a firm believer in free market capitalism. A free market system allows all parties to compete, which ensures the best and most competitive project emerges, and ensures a fair, democratic process.
I will communicate progress on gasline negotiations to the public. My Administration will pursue the plan that is best for ALL Alaskans. All qualified and viable proposals and applicants will be considered.
Source: Palin-Parnell campaign booklet: New Energy for Alaska Nov 3, 2006


Joe Biden on the Economy:

Obama's economic plan focuses on middle class
Q: Was the bailout the worst of Washington or the best?
BIDEN: It's evidence that the policies of the last 8 years have been the worst policies we've had. Obama laid out criteria for a rescue plan. He, first of all, said there has to be oversight. Second, he said you have to focus on folks on Main Street. Third, he said that you have to treat the taxpayers like investors. And, last, you have to make sure CEOs don't benefit from this. We're going to focus on the middle class, because when the middl class is growing, the economy grows and everybody does well.
PALIN: A good barometer is go to a kid's soccer game and turn to a parent and ask, "How are you feeling about the economy?" You're going to hear fear. Two years ago, it was John McCain who pushed so hard with the Fannie & Freddie reform measures. There will be greater oversight, thanks to John McCain's bipartisan efforts that he was so instrumental in bringing folks together, even suspending his own campaign to put politics aside.
Source: 2008 Vice Presidential debate against Sarah Palin Oct 2, 2008


Deregulation got us into the housing crisis
Q: Who is to blame for the subprime lending meltdown?
BIDEN: Barack warned about the sub prime mortgage crisis. We let Wall Street run wild. John McCain thought the answer is that tried and true Republican response, deregulate, deregulate. And guess what? The middle class needs tax relief. They need it now.
PALIN: It was predator lenders who tried to talk Americans into thinking that it was smart to buy a $300,000 house if we could only afford a $100,000 house. There was deception, and there was greed and there is corruption. Joe Six Pack, hockey moms across the nation, we need to band together and say never again. We need to demand from the federal government strict oversight of those entities in charge of our investments and our savings. Let's do what our parents told us before we probably even got that first credit card. Don't live outside of our means.
Source: 2008 Vice Presidential debate against Sarah Palin Oct 2, 2008



Balancing budget is about priorities; GOP made wrong choices
Q: Would it be a priority of your administration to balance the federal budget every year?
A: You don't have to make a choice of balancing the budget and/or leading with the priorities that most of us feel strongly about, from health care, to education, to the environment. And I'll just put it in real stark terms: It's about priorities. Just by eliminating the war, & eliminating the $200 billion in tax cuts that goes to the top 1%, if you add it all up, [with $350B in cuts to military special programs], that would allow me to do everything I want to do -- my priorities on education, health care and the environment -- and still bring down the deficit by $150 billion. So, the Republicans are trying to sucker us into this, "You either have to balance the budget and do nothing to make people's lives better, or you're going to balloon the deficit." They have ballooned the deficit with their bad priorities.
Source: 2007 Des Moines Register Democratic debate Dec 13, 2007


Invest in new programs by ending war & eliminating tax cuts
Q: On your website you say about programs for energy research, health insurance, tuition deductions--all noble goals for Democrats, but it's more money, more money. Where you going to get it?
A: First of all, we're going to end this war. It's $100 billion a year we're spending.
Eliminate the tax cuts for people making over a million bucks --that's $85 billion a year.
Eliminate the tax break for investment on dividends--$195 billion.
We have a fancy word--a new "paradigm" [about crime, health, and energy]: Investment in these areas saves money. But you need start-up dollars. I'd start off with $220 billion a year by the tax cuts and ending the war.
Q: But, senator, we have a deficit. We have Social Security and Medicare looming.
A: The answer is you have to put it all on the table. We put Social Security on the right path for 60 years. Social Security's not the hard one to solve. Medicare, that is the gorilla in the room, and you've got to put all of it on the table.
Source: Meet the Press: 2007 "Meet the Candidates" series Apr 29, 2007