President-Elect Obama: We need to think pratically about moving ahead with the economy

President-Elect Obama held a press conference, addressing the failing economy and his plans once in the White House on Jan. 20th. "Immediately after I become President, I will confront this economic crisis head-on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity," Obama said.

Obama said that one of the first things his administration needs to do will be to implement a rescue plan for the middle class that invests in immediate efforts to create jobs and provides relief to families that are watching their paychecks shrink. "A urgent priority is a further extension of unemployment insurance benefits for workers who cannot find work in the increasingly weak economy," Obama stated.

The second thing the President-Elect said needs to be done is to address the spreading impact of the financial crisis on other sectors of the economy; Small businesses that are struggling and state and municipal governments facing devastating budget cuts and tax increases, "We must also remember that the financial crisis is increasingly global and requires a global response," Obama said.

The last thing the new administration will need to do is to review the implementation of the previous administration's financial program to ensure that our government's efforts are achieving their central goal of stabilizing financial markets while protecting taxpayers. "It is critical that the Treasury Department work closely with the FDIC, Housing and Urban Development and other government agencies to use the substantial authority they already have to help families avoid foreclosures and stay in their homes," President Elect stated.

Top goals debated for the first 100 days of the Obama Administration

At a discussion on "After the Election: The New Administration and the Democracy Party in a Transformed Political World," contributing editor for the New York Times Magazine, Matt Bai, said he didn't think Obama won by a landslide on election night. Bai compared Obama to Bill Clinton in 1992 and 1996 when Clinton won more electoral votes than Obama did in this election.

According to Bai, universal health care must be the number one priority on Obama's to-do list as President. Bai further stated that "health care is a critical thing for Obama to accomplish," "...businesses want it, the public want it..."

President and co-founder of the non-partisan think tank Third Way, Jonathan Cowan, believes the opposite; that energy, not health care, must be Obama's first priority. According to Cowan, Obama will "reach across the aisle to get bipartisanship".

When comparing Obama to the 2004 democratic candidate, John Kerry, Cowan said Obama performed much better among the identified liberal voters. Obama also received more votes among moderates and conservatives. Cowan highlighted Obama's economic strategy, saying his middle-class ideas and solutions outranked his opponents.

Cowan also said that he believes Obama will protect women’s rights to have an abortion, but still reduce the number of abortions across the nation.

White House Briefing

For weeks, the administration has been lowering expectations about the economy, saying the third quarter report on gross domestic product would be rough.

It was. It fell 0.3% between July and September, the weakest figure in seven years. And the White House outlook? Things are probably going to get worse.

"There's no question the economy has weakened significantly," admitted Eddie Lazear, chairman of the president's council of economic advisors. "We've got a few tough months ahead of us,"

Lazear said parts of the U.S. are undoubtedly in a recession, but declined to say if the entire country is. By definition, a recession occurs when the economy shrinks for two quarters in a row.

But Lazear said the administration's recent actions, notably the massive $700 billion Troubled Asset Relief Program, or TARP will help move the economy in the right direction.

Dividends

Meantime, White House press secretary Dana Perino was subjected to a barrage of questions about why banks dipping into the TARP trough for much needed capital continue to pay dividends to shareholders.

"You know, some people think only rich people get dividends. That's not true, she said." Perino pointed out that "mutual funds, schoolteachers" and others get dividends through investments they hold.

Where's Bush?

The silence is thunderous. President Bush is, perhaps not by choice, staying off the campaign trail and keeping quiet about the race to succeed him - a race now down to its final hundred hours. He'll spend the weekend at Camp David with the First Lady, but will return to the White House to watch returns on election night.

When will the president hold a news conference to comment on the election?

"I don't know," says Perino. "You'll probably hear from me first though, on Tuesday night."

The President did find a receptive audience today, though, attending graduation at the FBI academy, then visiting Marine Squadron One - home of Marine One, the presidential helicopter.

Mrs. Bush, for her part, visited New Orleans today, her 20th visit to the Gulf region since Hurricane Katrina. She visited an elementary school and announced a grant to help rebuild school libraries in the region. Perino said it would probably be Mrs. Bush's final visit to the region as first lady.

Senator Schumer--If the Democrats win 60 seats, good changes ahead for America

"The wind is at our back" said Senator Charles Schumer concerning the 2008 senatorial races, but cautioned that it would be "hard" for the Democrats to win enough to get to 60 in the Senate. In a briefing today, Schumer claimed that he would still be excited if the Democrats reached 57 seats, saying, "We haven't had 57 seats since 1979."

He reacted to the McCain campaign's recent claim that a Democrat president combined with a Democrat majority in both houses of Congress would be dangerous, by stating that the Republicans are using this argument because their foreign and domestic policies are not working. He further stated that if too many Republicans win their senatorial races, they will "block change" and "more gridlock" will ensue. Referring to the Democrats, Schumer added that "Nothing would make us happier than reducing the partisanship."

Schumer attributed much of the success in both the Democratic presidential and senatorial campaigns to their "ground game." He said that the Democrats have poured "significant resources" into their ground game, and that "We do not see evidence of a strong ground game" from the Republicans.

Referring to specific senatorial races, Schumer said the race in Kentucky between incumbent Sen. Mitch McConnell (R-Ky.) and challenger Bruce Lunsford (D) is tight as they expected "from the get-go." In Georgia, the election between Sen. Saxby Chambliss (R-Ga.) and Jim Martin (D) is "razor tight" and in Minnesota, Sen. Norm Coleman's (R-Minn.) decision to support President Bush's economic policies is "hurting him" in his reelection campaign against Al Franken (D). Schumer also felt the battle in North Carolina between Sen. Elizabeth Dole (R-N.C.) and Kay Hagan (D) was close, but Hagan was ahead by more than the polls have shown. He also thought that the the calls for resignation of Ted Stevens by Republicans such as Sen. John McCain (R-Ariz.) and McConnell will allow Mark Begich (D) to win the senatorial seat in Alaska.

If the Democrats reach 60 seats, Senator Schumer felt Congress would be better on "issue after issue." He mentioned specific issues including the war in Iraq, energy, education, and health care that would be improved in that event. Although, he felt that even if they don't reach 60, some "mainstream conservative" Republicans might "smell the coffee."

Schumer said that, while he supports Sen. Barack Obama (D-Ill.), a Democratic Senate will not "rubber stamp" his policies if he is elected president. He concluded that the difference between Obama and other democrats is "not that great," Obama "consults a lot."

McCain better for economic growth?

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.