By Michael Ruhl, University of New Mexico – Talk Radio News Service

President Barack Obama
Photo by Michael Ruhl

Today President Barack Obama announced a new effort to stimulate tomorrow’s economy by reviving higher education through expanding Pell Grants and removing barriers to success. The public face for his new initiative is to be Dr. Jill Biden, wife of Vice-President Joe Biden and Community College Professor.

Obama’s plan, detailed at opportunity.gov, would help the unemployed go back to school to build new skill sets, with the goal of helping them gain future employment through specialized technical training.

“The idea here is to fundamentally change our approach to unemployment in this country, so that it’s no longer just a time to look for a new job, but is also a time to prepare yourself for a better job,” Obama said. “Our unemployment system should be not just a safety net, but a stepping stone to a new future.”

Among the barriers to success that the President wants to break down are state programs in which a worker might lose temporary financial support if they were to enroll in an education program. Obama said that in some places a worker may be unemployed, but may not qualify for federal assistance to get an education because of the salary they had a year ago but no longer make. The President said that he is committed to working with states to change these laws.

The President said that knowledge is the most valuable skill that one can sell. He encouraged all Americans to aim for getting at least 1 year of higher education, whether it is a community college, a four year school, vocational training or an apprenticeship.

“By 2020, America will once again have the highest proportion of college graduates in the world,” Obama said optimistically.

This announcement came on the same day as the release of April’s unemployment statistics, which saw the loss of more than half a million jobs. The unemployment rate for April was 8.9 percent, up from 8.5 percent in March and 8.1 percent in February. April’s numbers have already surpassed both the White House’s and the Federal Reserve’s projections for all of 2009, which were 8.1 percent and 8.8 percent, respectively.

Acknowledging that unemployment is as its highest rate in 25 years, the President urged patience, reminding us that the economic problems didn’t happen overnight, and couldn’t be fixed immediately.

“We’re still in the midst of a recession that was years in the making and will be months or even years in the unmaking,” Obama said. He continued, “We should expect further job losses in the months to come.”

Obama said that the Economic Stimulus Package is yielding real results, manifest in higher consumer spending and home sales, and an increase in construction spending. He praised the Recovery Act, and said, “Because of this plan, cops are still on the beat and teachers are still in the classroom; shovels are breaking ground and cranes dot the sky; and new life has been breathed into private companies.”

Fixing the economy and reforming education are two goals Obama has set for his administration. He said that in the weeks to come he would start working towards more education initiatives.

by Suzia Van Swol, University of New Mexico-Talk Radio News Service

Senator Lindsey Graham (R-S.C.) questions Secretary of Treasury Timothy F. Geithner at the Senate Budget Committee Hearing about how much money is going to be spent and if more money will be needed to fix housing, Geithner doesn’t seem to have the answers. (2:26)

 

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Rep. Gregory Meeks (D-N.Y.) says dealing with the housing crisis is vital because it shows that the government wants to help all people. (1:03)

 

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Rep. Spencer Bachus (R-Ala.) says that while high foreclosure rates do not help anyone, the government should not mandate bailing out all borrowers. (1:31)

 

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Rep. Barney Frank (D-Mass.), Chairman of the House Financial Services Committee, said he has seen “encouraging signs,” in efforts to reduce foreclosures in the U.S. During a Financial Services Committee hearing today, Frank said it would be very important to the economy to reduce foreclosures and to use the rescue plan to put money into the economy.

Chairman Frank stated that taxpayer dollars wouldn’t be used to help others “pay their mortgages,” believing there was “zero likelihood” that that would happen. Frank also felt that decisions on the housing crisis are “unmakeable” in government currently, adding, “Someone has got to have the authority to make a decision.”

Rep. Spencer Bachus (R-Ala.) said that while the U.S. should work to reduce foreclosures, “We need to be careful to prevent all foreclosures.” Bachus stated, “If a homeowner is under water, if the house is worth substantially less than the mortgage, it is predictable that many are going to walk away from their obligation. In fact, we are seeing a good percentage of foreclosures in which the homeowner is under water and they are walking away.” He added, “I don’t see any practical way of preventing that.”

While Bachus agreed that the government could not allow an economic collapse, he asked “Where does it stop?” Bachus did praise government’s intervention in the crisis to this point, saying “So far, we’ve made a terrible situation better,” but advocated the need for an “exit strategy.”

Rep. Paul Kanjorsky (D-Pa.) made a reference to homeowners, saying that it was important to “keep them afloat.” He added that current foreclosure rates have “decimated some communities.”

According to Rep. Randy Neugebauer (R-Texas), it is important not to “encourage borrower behavior that is not appropriate.” He did think that if dialogue between borrowers and lenders is encouraged, “there will be some effort” to keep people in their homes.

Benjamin Allensworth, Senior Legal Counsel for the Managed Funds Association, said “the wave of foreclosures has placed downward pressure on home prices, which in turn has eroded home equity and consumer confidence in the mortgage market.” He advocated “effective mortgage modifications over foreclosure whenever possible.”

Thomas Deutsch, Deputy Executive Director of the American Securitization Forum, felt that government assistance in the crisis is vital and while mortgage lenders have made efforts to prevent “avoidable foreclosures,” “Macro economic forces bearing down on an already troubled housing market are simply too strong for private sector loan modification alone to counteract the nationwide increase in mortgage defaults and foreclosures.” Deutsch felt the housing crisis could not be resolved without government assistance.

Former Housing Secretary Jack Kemp called on Sen. Obama “to lower taxes during a recession” in a teleconference today. Kemp said he didn’t know any economist who advocated “for a tax increase” during such a time.

Kemp also said it was important to “stop the hemorrhaging” of home ownership. He claimed Sen. McCain will help homeowners in default by renegotiating their payments. Senior McCain Advisor Doug Holtz-Eakin said Obama’s plan of a “90 day mortgage moratorium” doesn’t fix the inherent problem of home ownership.

Holtz-Eakin said he had noticed “daily shifts in the Obama tax plan.” He stated that while Obama started his campaign by saying that everyone making under $250,000 would get a tax cut, Obama said recently that only those making under $200,000 would see a tax cut. In addition, Holtz-Eakin said that Sen. Biden claimed that the tax cut would only be given to those making under $150,000.

Virginia Delegate Chris Saxman said in reaction to Obama’s tax plan, “I don’t want Joe the Plumber’s money. I want him to invest.”

Speaking about McCain’s chances in the battleground state of Virginia, Saxman said that Mark Warner and Tim Kaine, current and former governors of the state, “both ran as centrist democrats.” He said
Sen. Obama is not running as a centrist, as evidenced by his plan to raise taxes.

Former Housing Secretary Jack Kemp explains why Sen. McCain is the best candidate to deal with the housing crisis. (1:15)

 

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Doug Holtz-Eakin, McCain-Palin’s 2008 senior policy adviser, explains how taxpayers can use the new housing policy Senator John McCain (R-Ariz.) announced at last nights debate. (1:08)

 

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In an exclusive interview with the former Chief of Staff John Podesta, Bureau Chief Ellen Ratner discusses Podesta’s book “The Power of Progress: How America’s Progressives Can (Once Again) Save Our Economy, Our Climate, and Our Country”. Podesta discusses what he calls “robber barons in Washington”, as well as ways to transform America’s economy. He concludes by citing important factors that he believes would help our nation’s housing crisis. (7:33)

 

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At a Domestic Policy Subcommittee of the House Oversight and Government Reform Committee hearing on the impact of the subprime mortgage crisis on neighborhoods, Chairman Dennis Kucinich (D-Ohio) says that while “the meltdown of subprime lending has been a genuine tragedy” for individuals, the “totally blameless victims” are the neighborhoods affected by vacant and abandoned property.  Kucinich lists the repercussions of abandoned properties, including falling property value, loss of rental units, rise in crime, and loss in tax revenue. (1:00)

 

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