Obama Proposes New Economic Recovery Measures

By Ravi Bhatia – Talk Radio News Service

President Barack Obama discussed his administration’s plans to continue accelerating economic recovery Tuesday at the Brookings Institute in Washington, D.C. Obama suggested that growth will occur through tax cuts and incentives for small businesses, continued investment in American infrastructure, and job creations through clean energy investments.

The measures, at least in part, would be funded by money saved from the Troubled Asset Relief Program, a program which allowed the U.S. government to purchase assets and equity from troubled financial institutions in order to trigger economic growth after the financial collapse. Administration officials say TARP cost about $200 billion less than expected.

“We are going to wind down [TARP],” Obama said. “There has never been a less loved or more necessary program. It was flawed… but today has served its original purpose and at a much lower cost.”

["This] gives us a chance to pay down the deficit faster than we thought possible and to shift funds that would have gone to help the banks on Wall Street to help create jobs on Main Street,” Obama added.

However, senior administration officials noted that the administration has not determined the minimum costs of the proposed programs, and at a press conference this morning, House Minority Leader John Boehner (R-Ohio) said Obama’s announcement indicates a “Stimulus 2,” being paid for with TARP money that Boehner says, “was to go to the deficit.” Boehner said the idea of spending money that was intended to be in excess, is “repulsive.”

Obama said that the programs would eliminate a tax on capital gains from new investments in small business stock for one year and expand on the 75 percent exclusion in the Recovery Act. The small business measures would also create a tax cut for small businesses to encourage new hiring next year, and would continue giving companies enhanced expensing provisions through 2010, allowing them to instantly expense up to $250,000 of qualified investments.

Besides investments in bridges, roads and infrastructure, the new economic programs could provide new incentives for consumers who invest in energy efficient retrofits for their homes.

Following the President's speech, top Economic Adviser Christina Romer and Labor Secretary Hilda Solis told reporters during a conference call briefing that the measures align with the administration's continuing plans to end the recession.

“This really is an evolution,” Romer said. “We had done important actions early in the administration to heal the economy...the Financial Stability Plan, the Recovery Act (ARRA), our housing program.”

Romer added that as indicated in Obama’s speech, today’s announcement of tapping into TARP funds isn’t “a sum total of everything that we are considering.” The economic advisor said congressionally extending ARRA provisions is also being considered.

As far as unemployment benefits that are expected to end this month, Solis promised that there will be a discussion on the Hill about extending unemployment insurance and extending certain ARRA provisions that would be applicable.

Comprehensive Study Could Improve Diplomacy, Says State Department Official

By Ravi Bhatia - Talk Radio News Service

Director of Policy Planning for the U.S State Department Anne-Marie Slaughter said Monday that a new study aimed at plotting out the future of the department, the Quadrennial Diplomacy and Development Review, could yield improvements in international relations.

“[Following the success of the QDDR] we would have much greater capabilities in the building of a new global architecture of cooperation,” said Slaughter. “[This] would include a greater capability and greater strategy in building bilateral partnerships with emerging nations and with our traditional allies. We would have a far greater capacity to work with non-state actors.”

According to the State Department, the QDDR hopes to provide a short, medium, and long-range blueprint for U.S. diplomatic and development efforts by showing how the current and future administrations should develop foreign policy, allocate resources, deploy staff, and exercise authority. The Review’s final report will be presented to President Barack Obama and Congress.

Slaughter spoke about the QDDR’s efforts at the Center for American Progress, a left-leaning think tank in Washington, D.C. Her remarks coincide with the release of the center’s recommendations for Obama’s National Security Strategy.

The CAP report states that the NSS should fundamentally change the U.S. response to radical extremists, increase U.S. funding for development in “weak or failing” states and use diplomatic tools to engage with hostile regimes, among other recommendations.

“Everywhere you turn, it is clear that we need not only government power, but the power of the private sector, the power of [non-government organizations], the power of think thanks like [CAP] -- all putting in their comparative advantage and resources to tackle common problems,” Slaughter continued.

The Obama administration was required to deliver its first NSS report within five months of the president taking office, according to the CAP report’s executive summary. The administration has yet to issue one.

Retired Army Major General Paul Eaton, who also spoke on behalf of the CAP report, discussed the government’s unresolved issues with allocating resources, which the QDDR and the CAP report seek to correct through their recommendations.

“There is no hard-ass Colonel who is telling people in a directive fashion, in the development of a plan, how you’re going to resource the plan,” he said. “There’s no mechanism today to establish directive authority, to establish tasking authority and to make things happen in a comprehensive, integrated fashion. Until that entity is created, [our diplomatic and development efforts aren’t] going anywhere," said Maj. Gen. Eaton.

Obama May Not Have Called Conservative Activists "Tea Bags"

By Justin Duckham - Talk Radio News Service

President Barack Obama has caught flak for reportedly calling the conservative activists that descended on Capitol Hill twice in the past week “tea bag, anti-government people.”

The description comes from a New York Times blog written by Jackie Calmes featuring a quote provided by Rep. Earl Blumenauer (D-Ore.) detailing Obama’s talks with Congress in the hours leading to the House vote.

“According to Representative Earl Blumenauer of Oregon, who supports the health care bill, the president asked, “Does anybody think that the teabag, anti-government people are going to support them if they bring down health care? All it will do is confuse and dispirit” Democratic voters “and it will encourage the extremists.”

Right wing blog redstate.com posted an article Tuesday morning chiding the left for its use of “tea bag” or “tea bagger” as in insult aimed at conservative activists, using the New York Times blog to charge that even the President uses the insulting term to describe the demonstrators.

However, it seems that Obama might not have uttered those words and that Blumenauer was in fact paraphrasing.

Talk Radio News Service was present during Blumenauer’s discussion with Calmes and captured sound from the exchange. While the audio shows that Blumeanuer did make the statement in question, the Oregon Democrat appears to revise his words several seconds later to instead suggest that the president only said “extreme people.”

Click on the audio icon below to listen to the exchange.

Obama Makes 11th Hour Push For Health Care Bill

With the House vote on the Affordable Health Care for America Act expected within hours, President Barack Obama came to Capitol Hill Saturday to secure votes from Congressional Democrats.

The president spoke for approximately 15 minutes, veering away from controversial topics such as the public option and abortion funding.

“[It was] higher level,” Rep. Earl Blumenauer (D-Ore.) told reporters. “[Obama] talked about the imperative of the country, talked about the tough decisions, acknowledged that it was hard.”

Instead, the President focused on his desire to lower health costs for families and small businesses, casting the impending vote as a historic opportunity.

Obama acknowledged the heated opposition to the bill being waged by Conservative activists, telling the caucus that Democrats could not win them over simply by opposing the legislation.

Chief of Staff Rahm Emanuel, who served in the House from 2002-2008, accompanied the President. Emanuel reportedly worked the room, talking to his former colleagues on an individual basis.

The president’s remarks were received warmly, with some members spontaneously bursting out with calls of “fired up, ready to go,” a popular slogan from Obama’s 2008 presidential campaign.

VA Gubernatorial Race Not Indicative Of Changing National Mood

By Ravi Bhatia - Talk Radio News Service

Joseph Figueroa at the University of Virginia's Center for Politics says that today's Gubernatorial elections in Virginia and New Jersey and the Congressional election in upstate New York reflect little on national political trends. Figueroa's sentiment conflicts with Republicans who believe that GOP victories in the three races would serve as a referendum of sorts on the job performance of President Barack Obama.

“You really have to take the results for what they are, as a reflection of the campaign that the two candidates ran,” said Figueroa, referring to the race for governor in Virginia. “I don’t think you can really extrapolate a whole lot in terms of national or even state trends because Virginia is a purple state, and it’s gonna remain so for a while.”

In Virginia, polls suggest that former state Attorney General and Republican candidate Bob McDonnell holds a double-digit lead over Democratic candidate Creigh Deeds. In New Jersey, the race between incumbent Democratic Governor John Corzine and his challenger, Republican Chris Christie, remains deadlocked.

“New Jersey is a blue state - it’s dark blue,” Figueroa said. “It’ll be interesting to see because Christie did have a bit of an upswing in the polls at the very end there. But it is a deadlocked race. That’ll be the one to watch tonight.”

In New York’s 23rd Congressional District, Republican candidate Dede Scozzafava dropped out of the race after being outpolled by Conservative Party candidate Doug Hoffman. She has since endorsed Democrat Bill Owens.

“A lot of the people who were inclined to support Scozzafava because she’s running under the Republican banner may not be so quick to vote for Owens because of their own ideals,” Figueroa continued. “It’s gonna be really interesting to see - they have a very difficult to decision to make.”

The polls close in Virginia at 7 p.m. tonight. In New Jersey, the polls close at 8 p.m. and in New York, they close at 9 p.m.