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Clinton Unveils Aggressive Plan to Jumpstart U.S. Economy
Plan Would Help Hundreds Of Thousands Of Families Stay In Their Homes; More Than 37 Million Would Receive Energy Assistance
Hillary Clinton is unveiling an aggressive $70 billion stimulus package today that would boost the U.S. economy and help families who have been hit hardest by the economic downturn across America.
Clinton will detail her five-part stimulus plan in a speech at the IBEW Hall in City of Commerce, CA. Her plan would specifically help homeowners who have been hurt by the housing foreclosure crisis, provide immediate relief to families who are facing skyrocketing energy bills, support workers who have lost their jobs, and make immediate investments in "green collar jobs" which will not only stimulate the economy, but improve the environment.
More than 37 million Americans would receive energy assistance under Clinton’s plan, and hundreds of thousands of families would get help to avoid foreclosure and stay in their homes. "Economists and politicians are finally waking up to what many of America’s families already know: that we might be sliding into a recession," Clinton said.
"But when the bills are stacking up, and you’re just one pink slip away from losing everything you’ve got, the last thing you need is more talk. In the face of rising global competition, our children’s future is at stake. So we don’t need more rhetoric, we need action. We need an immediate strategy to get our economy back on track. I would work with leaders from both parties to pass an aggressive, fast-acting stimulus package to create good new jobs and revitalize our economy."
Senator Clinton believes we need to jumpstart the economy without negatively affecting America’s long-term fiscal position. In addition, her plan targets assistance toward hardworking families which are most likely to spend new resources, which will ensure that we give the economy an immediate boost.
Clinton also called on Congress to stand ready to provide an additional $40 billion in direct tax rebates to working and middle class families if the economy continues to worsen.
Hillary’s Economic Stimulus Plan would:
Establish a $30 Billion Emergency Housing Crisis Fund to assist states and cities mitigate the effects of mounting foreclosures
Take bold action to stem tide of foreclosure, including a 90-day moratorium on subprime foreclosures and an automatic rate freeze on subprime ortgages of at least five years
Provide $25 billion in emergency energy assistance for families facing skyrocketing heating bills
Accelerating $5 billion in energy efficiency and alternative energy investments to jumpstart green collar job growth:
Invest $10 billion in extending and broadening unemployment insurance for those who are struggling to find work:
HILLARY CLINTON’S PLAN TO JUMPSTART OUR AILING ECONOMY
Today, Senator Clinton outlined an economic stimulus plan to help hard hit families and give our economy a much needed boost. Over a month ago, in a speech to Wall Street, Senator Clinton called on the Bush Administration to begin considering economic stimulus. In the month since, while the Administration has failed to act, we have seen growing signs that our economy is faltering. Tens of thousands of families have already been forced out of their homes. Recently, oil hit $100 a barrel, and last Friday, the Bureau of Labor Statistics reported that the economy lost jobs in the private sector in December for the first time in over four years. According to RealtyTrac, more than 201,000 foreclosure filings were reported in November alone, up 68 percent from the year before.
Hillary believes we need real action now. While economists may still be debating whether we’ve met the technical definition of a recession, for hard-hit middle class families that question has already been answered.
That is why today Senator Clinton called on the President and Congressional leaders from both parties to enact an aggressive, fast-acting stimulus package based on common-sense economic principles. Unlike 2001, when President Bush used stimulus as an excuse to force through long-term tax cuts for the wealthiest Americans - which ran up our debt to foreign governments while utterly failing to reignite job growth - Senator Clinton believes we need a strong immediate stimulus to jumpstart the economy without negatively affecting our long-term fiscal position. In addition, stimulus measures should be targeted toward hardworking families that are most likely to spend new resources, which will ensure that we give our economy an immediate boost. As President, Hillary would enact a five-part stimulus package that is consistent with these principles. This package includes:
Establishing a $30 Billion Emergency Housing Crisis Fund to assist states and cities mitigate the effects of mounting foreclosures. With our economy facing the prospect of substantial contraction as hundreds of thousands of subprime mortgages reset and housing values erode further, Senator Clinton believes that any effective stimulus package must take aggressive action to mitigate this contraction and help as many families as possible remain in their homes. Her $30 billion fund would provide immediate, time-limited resources to states, cities and community organizations to help prevent unnecessary foreclosures. States and communities could also use the funds to offset the costs associated with vacant properties by supporting efforts like community-level anti-blight programs and helping local housing authorities buy up vacant properties and rent them to working families. When families lose their homes, surrounding property values and local tax revenues decline and the cost of policing and maintaining vacant properties rise. This reduction in revenues and rise in costs can lead cities and states to cutback services, lay off teachers and other vital workers, raise college tuition, or even raise local taxes. The availability of $30 billion in federal assistance will ensure that states and cities have the resources they need to fight foreclosures, prevent a downward housing cycle impacting large numbers of homeowners and to weather the crisis without unnecessary fiscal contraction.
Taking bold action to end the housing crisis. Senator Clinton is the only candidate with a comprehensive plan to keep families in their homes and keep the housing crisis from dragging down the economy. More than 2 million foreclosure notices went out last year, devastating families and communities. The foreclosure crisis is also contributing to the decline in home prices which has already cost families an estimated $1.3 trillion. Many experts believe the worst is yet to come. To stem this crisis, Senator Clinton has called for a 90-day moratorium on subprime foreclosures and an automatic rate freeze on subprime mortgages of at least five years or until servicers have converted the unworkable mortgages into loans families can afford. In addition, Senator Clinton proposed to temporarily empower state housing financing agencies to help families refinance unworkable mortgages and temporarily increasing the portfolio caps at Fannie Mae and Freddie Mac, and enabling them to purchase larger loans in high-cost areas. These steps would immediately increase the availability of mortgages for responsible borrowers.
Providing $25 billion in emergency energy assistance for families facing skyrocketing heating bills: Rising home heating prices are imposing a serious and immediate financial burden on working families. Yet while more than 37 million American families are eligible for home energy assistance, only 5.6 million - or approximately 16% - are slated to receive any aid this winter. Even those who do receive assistance have seen the average grant decline from 36% of a typical family’s home heating bills in 2003 to only 23% in 2007. Meanwhile, the cost of heating a home in New Hampshire is expected to soar as much as 20 - 25% this winter alone. Senator Clinton is calling for an immediate $25 billion investment in home heating assistance grants for all 37 million eligible families. The grants will the purchasing power of energy assistance to where it was 5 years ago. And they will ensure that hardworking families and seniors on fixed incomes will not have to choose between heating their homes, putting food on the table or purchasing prescription drugs this winter.
Accelerating $5 billion in energy efficiency and alternative energy investments to jumpstart green collar job growth: Senator Clinton believes that by immediately implementing components of her comprehensive plan to transition to a green, clean economy, we can both jumpstart green collar jobs and jumpstart our long-term transition to energy independence as well. The immediate actions that could be part of a 2008 stimulus could include a crash weatherization program to cut home energy costs by up to 20% this winter; expanded tax credits to encourage families and businesses to accelerate purchases of hybrids and other low emission vehicles and to reduce energy costs by purchasing efficient appliances, new windows and other clean, efficient technologies, and acceleration of a Green Building Fund and Green Collar Job training program to put tens of thousands of people to work making schools and other public buildings energy efficient.
Investing $10 billion in extending and broadening unemployment insurance for those who are struggling to find work: Senator Clinton is calling for stepped up assistance for those who have lost their jobs and are searching for work while trying to provide for their families. By strengthening our unemployment insurance program and extending unemployment insurance for workers who are laid off for extended periods, this efforts will empower more Americans to reenter the labor market in good-paying jobs.
Standing Ready for $40 Billion Rebate to Working Families: In addition to immediately adopting her 5-part plan, Senator Clinton called on Congress to stand ready to provide an additional $40 billion in direct tax-rebates to working and middle class families if economic circumstances continue to worsen. This additional $40 billion in tax relief should be designed to meet Senator Clinton’s principles for stimulus: it should be fast-acting to kick-start the economy; temporary to be fiscally responsible; and progressive so that it has a high bang-for-the-buck. This means that rebates should not be partially or completely denied to tens of millions of lower income taxpayers, as was the case with President Bush’s plan during the last economic contraction.
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