Will Obama's Economic Plan Help Americans?

On Monday, October 13, Democratic presidential nominee, Barack Obama unveiled his new economic proposals to address the current economic crisis, despite the October 3rd passing of the Senate’s revised $700 billion bailout plan

Obama is calling for temporary but costly new programs to help employers, automakers, homeowners, the unemployed, and state and local governments. He has proposed giving employers a $3,000 tax credit for each new employee to encourage job creation. He said he would seek to allow Americans of all ages to borrow from retirement savings without a tax penalty, to eliminate income taxes on unemployment benefits and to double, to $50 billion, the government’s loan guarantees for automakers.

Obama called on the Treasury and the Federal Reserve to lend money to cities and states with economic problems. He also proposed a 90-day moratorium on home foreclosures, which would require financial institutions that take government help not to act against homeowners who are at least trying to make payments.

The total cost of the full economic plan is estimated at around $175 billion, including $60 billion for the steps more recently announced. Of the earlier $115 billion, $50 billion would be used to help states to speed the construction of roads and other projects that create jobs. The other $65 billion would be the cost of a second round of rebates to taxpayers this year.

Pat O’Brien is a hard working blue collar man of New York City, who supports his family of three on an automobile mechanic’s modest salary. Along with his wife, Marie, they combine to make $50,000 annually. Marie recently received a new job as a secretary at Manhattan College, and she is looking forward to receiving the $3,000 tax credit from Obama’s plan.

The O’Brien’s currently rent their small, two-bedroom co-operative apartment in the North Bronx, and for years, Pat has been trying to save up and acquire loans so he and his family can afford to buy the apartment and own in permanently. Due to Obama’s $50 billion guaranteed loans to automakers, this dream is looking more and more possible. The moratorium will no doubt help the O’Brien’s and give them more time to make payments on their newly owned home.

Pat and Marie have made it clear that they will be voting for Obama in the upcoming election, and his new economic plan provides them and many other American families with security and peace of mind.