Parties push dueling stimulus plans

October 13, 2008 6:39:54 PM PDT
Pollsters for ABC News describe the country's mood as a tornado of economic discontent. A Record 90-percent of those polled believe the country is on the wrong track. That's the highest number since that question was first asked in 1973.

President Bush's job approval rating is at 23 percent -- just one point away from the lowest figure in 70-years of polling. His disapproval rating is the highest ever.

Because of the economy, Barack Obama holds a 10 point lead over John McCain. No presidential candidate has ever come back from an October deficit that large in more than 80 years.

Congress is even considering another economic stimulus package, but Speaker Pelosi seemed lukewarm on sending out another round of checks to taxpayers.

The economic stimulus package that Congressional Democrats are working on is part of what they're calling an economic recovery plan.

"To rebuild America, to provide relief for the middle class, to encourage consumer confidence and to have regulatory reform by rewriting the rules for financial institutions," said Speaker of the House Nancy Pelosi.

Pelosi talked about providing aid to states for children's health care and for senior citizens food programs, using federal money for rebuilding bridges.

And Pelosi deferred to Barack Obama, who she said ad a better idea of what's needed.

In Toledo Ohio, he unveiled more his own plans to stimulate the economy.

"If Washington can move quickly to pass a rescue plan for our financial system, there's no reason we can't move just as quickly to pass a rescue plan for our middle class that will create jobs, provide relief and help homeowners," said Democratic Presidential nominee Sen. Barack Obama.

The Obama plans include:

  • A temporary tax cut for firms that create new jobs. It would allow penalty free withdrawals from 401k's and IRA accounts up to $10,0000 a year for this year and next.
  • A 90-day moratorium on home foreclosures.
  • And he's also advocating the federal government lend money direction to state and municipal governments.

    U.C. Berkeley economist Thomas Davidoff says that directly lending idea is best of the bunch.

    "If the federal government can do certainly lending if there are certain loans it can make without worrying the borrower is just going to run away with the cash, because it feels like it has the ability to underwrite the loans, then I think that's a much more direct and effective way of getting money moving back into the economy fairly quickly," said Davidoff.

    In Virginia, John McCain touted his own economic plans.

    "I have a plan to protect the value of your home and get it rising again by buying up bad mortgages and refinancing them, so if your neighbor defaults he doesn't bring down the value of your house with him," said Republican presidential nominee Sen. John McCain.

    And he went after Barack Obama on experience.

    "The next president won't have time to get used to the office, he won't have the luxury to study up the issues before reacts. He'll have to act immediately," said McCain.

    Meanwhile in a joint appearance with Italy's prime minister at the White House, President Bush said the administration is moving quickly to implement the $700 billion rescue program.

    On Wednesday, McCain and Obama meet for the third and final presidential debate. We expect both candidates will be focused on the economy and their plans to help it recover.


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