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Barack Obama's current economic advisors are Austan Goolsbee of the University of Chicago
and Jeffrey Liebman of Harvard University.[1]
In 2006, Obama wrote: "We should be asking ourselves what mix of policies will lead to a
dynamic free market and widespread economic security, entrepreneurial innovation and upward
mobility [...] we should be guided by what works."[2]
Speaking before the National Press Club in April 2005, he defended the New Deal social welfare
policies of Franklin D. Roosevelt, associating Republican proposals to establish private accounts
for Social Security with Social Darwinism.[3]
Contents
[hide]
• 1 Corporate governance
• 2 Labor rights
• 3 Minimum wage
• 4 Equal pay
• 5 Education
• 6 Energy policy
• 7 Health care
• 8 Homes, mortgages, mortgage crisis, and real estate industry
• 9 NASA
• 10 Network neutrality and government use of information technology
• 11 Taxation
• 12 Social Security
• 13 Lobbying and campaign finance reform
• 14 Immigration
• 15 Affirmative action
• 16 Trade
• 17 Faith based programs
• 18 Government waste
• 19 U.S. automobile industry loan guarantees
• 20 See also
• 21 References
• 22 External links
[edit] Corporate governance
On April 20, 2007, Obama introduced a bill in the Senate (Shareholder Vote on Executive
Compensation Act - S. 1181) requiring public companies to give shareholders an annual
nonbinding vote on executive compensation, popularly called "Say on pay." A companion bill
introduced by Rep. Barney Frank passed the House the same day.[4] Several corporations
voluntarily have begun to give shareholders such a vote because of concerns about excessive
CEO salaries.
Obama supports the Employee Free Choice Act, a bill that adds penalties for labor violations and
which would circumvent the secret ballot requirement to organize a union. Obama promises to
sign the EFCA into law.[5] He is also a cosponsor of the "Re-empowerment of Skilled and
Professional Employees and Construction Tradesworkers" or RESPECT act (S. 969) that aims to
overturn the National Labor Relations Board's "Kentucky River" 532 U.S. 706 (2001) decision
that redefined many employees lacking the authority to hire, fire, or discipline, as "supervisors"
who are not protected by federal labor laws.[6][7]
Obama favored the increase in the federal minimum wage from $5.15 an hour to $7.25, and he
voted to end the filibuster against a bill to accomplish that.[8][9] He favors raising it to $9.50 an
hour by 2011, and then indexing it for inflation afterwards.[10]
Obama favors the concept of equal pay (the abolition of wage differences between genders).[11]
He has supported legislation designed to improve the effectiveness of the Equal Pay Act of
1963.[12] In 2007, the House of Representatives passed the Lilly Ledbetter Fair Pay Act, which,
according to the National Federation of Independent Business, would have allowed "employees
to file charges of pay discrimination within 180 days of the last received paycheck affected by
the alleged discriminatory decision."[13] The bill would have overturned the Supreme Court
decision in Ledbetter v. Goodyear. There the Court dismissed a woman's discrimination claim
because she had filed it more than 180 days after the first affected paycheck. The bill died in a
2008 Senate vote in which Obama and other Democrats could not break a Republican
filibuster.[14] In the 111th congress it was passed again, and Obama signed it on January 29,
2009.[15]
[edit] Education
During an October 2004 debate, Obama stated that he opposed education vouchers for use at
private schools because he believes they would undermine public schools.[16] In May 2009, it
was reported that Obama would offer continued funding for the 1,716 Washington D.C. students
who were currently enrolled in the city's voucher program until they graduated from high school,
but that no new students would be admitted into the program.[17]
In a July 2007 address to the National Education Association
Association,, Obama supported merit pay for
teachers, to be based on standards to be developed "with teachers."[18] Obama also called for
higher pay for teachers.[18] Obama's
ama's plan is estimated to cost $18 billion annually and was
originally planned to be partially funded by delaying NASA's Constellation program for five
years[19] but he has since reconsidered and stated that he will look for "an entirely different
offset."[20] "We owe it to our children to invest in early
early-childhood
childhood education; and recruit an army
of new teachers and give them better pay and more suppor
support;t; and finally decide that, in this global
economy, the chance to get a college education should not be a privilege for the few, but a
birthright of every American."[21]
21]
He also is against the teaching of intelligent design as science,
but supports teaching theology.[22]
Obama has proposed the American Opportunity Tax CredCredit,, which would provide a refundable
tax credit for education in exchange for community service.[23]
Obama wants 5,000 failing schools to close, and then reopen with new principals and
teachers.[24]
In his New Energy For America plan, Obama proposes to reduce overall U.S. oil consumption by
at least 35%, or 10 million barrels per day, by 2030 in order to offset imports from OPEC
nations.[25][26] Obama voted in favor of the Energy Policy Act of 2005,, which provided incentives
(chiefly tax breaks) to reduce national consumption of energy and to encourage a wide range of
alternative energy sources.[27][28] It also resulted
ulted in a net tax increase on oil companies.[29]
Obama and other Senators introduced the BioFuels Security Act in 2006. "It's time for Congress
to realize what farmers in America's heartland have known all along - that we have the capacity
and ingenuity to decrease our dependence on foreign oil by growing our own fuel," Obama
said.[30] In a May 2006 letter to President George W. Bush, he joined four other midwest farming
state Senators in calling for the preservation of a $0.54 orted ethanol.[31]
$0.54-per-gallon tariff on imported
In an interview with NBC's Tim Russert on May 4, 2008, Obama said, "...we've got a serious
food problem around the world. We've got rising food prices here in the United States." "There's
no doubt that biofuels may be contributing to it. And what I've said is, my top priority is making
sure that people are able to get enough to eat. And if it turns out that we've got to make changes
in our ethanol policy to help people get something to eat, then that's got to be the step we
take."[32]
On the issue of nuclear power,, in 2005, Obama stated, "... as Congress considers policies to
address air quality and the deleterious ef
effects
fects of carbon emissions on the global ecosystem, it is
reasonable – and realistic – for nuclear power to remain on the table for consideration. Illinois
has 11 nuclear power plants – the most of any State in the country – and nuclear power provides
more than half of Illinois’ electricity needs."[33] Regarding McCain's plans for 45 new nuclear
power plants, Obama said that it's not serious, it's not new, it's not the kind of energy policy that
will give families the relief they need.[34] Obama declared himself flatly opposed to building the
Yucca Mountain nuclear waste repository in Nevada.[35][36] Furthermore, he opposes new nuclear
ear waste storage, safety and cost can be addressed.[37]
plants until the problems of nuclear
In 2006, in response to Illinois residents' concerns about unreported radioactive leaks by Exelon
Corporation,, Obama introduced a Senate bill to effect mandatory disclosure of such leaks. In
2008, The New York Times,, which had endorsed Hillary Rodham Clinton,[38] charged
harged that, in
revising his bill, Obama had "removed language mandating prompt reporting and simply offered
guidance to regulators".[39] In response, the Obama campa
campaign cited a National Journal analysis
of the revised bill, showing that "Obama's bill would require that any leak of radioactive
materials exceeding the levels set by the Nuclear Regulatory Commission and the EPA be
reported to state and local authorities, and to the NRC within 24 hours."[40]
Obama and other Senators introduced a bill in 2007 to promote the development of commercially
viable plug-in hybrids and other electric
electric-drive
drive vehicles in order to shift away from petroleum
fuels and "toward much cleaner – and cheaper – electricity for transportation".[41] Similar
legislation is now in effect in the Energy Independence and Security Act of 2007.[42] Obama
proposes that the U.S. Government invest in such developments using revenue generated from an
auction-based cap-and-trade or emissions trading program to reduce greenhouse gas
emissions.[43]
Obama stresses innovation as a means to improve energy efficiency,, calling for a 50%
improvement by 2030. He has called for a 50 miles per US gallon (4.7 L/100 km; 60 mpg-imp)
rule, proposing tax credits to automakers in order to ease the transition.
On June 22, 2008 Obama proposed tightening regulations on oil speculators in an effort to ease
record high prices of oil.[44] "My plan fully closes the Enron loophole and restores common-
common
[45]
sense regulation," Obama said.
Obama supporters at a campaign rally in Austin, Texas,, on February 23, 2007. President Obama
said he supports universal health care and programs to increase access to education.[46]
On January
anuary 24, 2007 Obama spoke about his position on health care at Families USA, USA a health
care advocacy group. Obama said, "The time has come for universal health care in America [...] I
am absolutely determined that by the end of the first term of the next president, we should have
universal health care in this country." Obama went on to say thathatt he believed that it was wrong
that forty-seven
seven million Americans are uninsured, noting that taxpayers already pay over $15
billion annually to care for the uninsured.[47] Obama cites cost as the reason so many Americans
are without health insurance.[48] Obama's health care plan includes implementing guaranteed
eligibility for affordable
fordable health care for all Americans, paid for by insurance reform, reducing
costs, removing patent protection for pharmaceuticals, and required employer contributions.[49]
He would provide for mandatory health care insurance for children.
In July 2008 The New York Times reported that Senator Obama has promised to “bring down
premiums by $2,500 for the typical family.” His advisers have said that the $2,500 premium
reduction includes, in addition to direct premium savings, the average family's share of the
reduction in employer
loyer paid health insurance premiums and the reduction in the cost of
government health programs such as Medicare and Medicaid.[50]
The Associated Press reported in September 2008 that Senator Obama was proposing a National
Health Insurance Exchange that would include both private insurance plans and a Medicare-like
Medicare
government run option. Coverage would be guaranteed regardless of health sta
status,
tus, and premiums
would not vary based on health status either. The campaign estimates the cost of the program at
$60 billion annually. The plan requires that parents cover their children, but does not require
adults to buy insurance.[51]
According to an October 26, 2008 article in the New York Times, Obama is considering a new
payroll tax on large and medium employers who do not already provide their employees with
health insurance, and this tax would be used to pay for health care for uninsured people, but
Obama has not cited the specific percentage of payroll that the tax would be, or how small a
number of employees the employer would have to have in order to be exempt from the tax.[52]
Obama voted for the $700 billion Emergency Economic Stabilization Act of 2008.[53]
Obama introduced the Stop Fraud Act[54] to increase penalties for mortgage fraud by mortgage
brokers and real estate brokers and to provide more protections for low-income homebuyers.
In regards to capital gains on house sales, Obama says he favors increasing capital gains tax
above the present 15% rate to 20% for families whose income is above $250,000.[55]
[edit] NASA
"As president, Obama will support the development of this vital new platform Crew Exploration
Vehicle to ensure that the United States' reliance on foreign space capabilities is limited to the
minimum possible time period."[56][57] Obama advocated a delay of the NASA Constellation
Program by at least five years in order to fund educational programs.[58] He has since reversed
this position, stating "I know it's still being reported that we were talking about delaying some
aspects of the Constellation program to pay for our early-education program ... I told my staff
we're going to find an entirely different offset, because we've got to make sure that the money
going into NASA for basic research and development continues to go there. That has been a top
priority for us."[20]
His Human Space Flight Plans Committee is reported to have concluded that the budget
allocation for NASA would not permit the planned manned Mars mission.[59]
In a June 2006 podcast, Obama expressed support for telecommunications legislation to protect
network neutrality on the Internet, saying: "It is because the Internet is a neutral platform that I
can put out this podcast and transmit it over the Internet without having to go through any
corporate media middleman. I can say what I want without censorship or without having to pay a
special charge. But the big telephone and cable companies want to change the Internet as we
know it."[60] Obama reaffirmed his commitment to net neutrality at a meeting with Google
employees in November 2007, at which he said, "once providers start to privilege some
applications or web sites over others, then the smaller voices get squeezed out, and we all
lose."[61] At the same event, Obama pledged to appoint a Chief Technology Officer to oversee
the U.S. government's management of IT resources and promote wider access to government
information and decision making.[62]
[edit] Taxation
Under Obama's plan, middle-class families would see their income taxes cut, with no family
making less than $250,000 seeing an increase. However, he did vote for a budget in June 2008,
that would raise the taxes on single people with a taxable income of over $32,000 by pushing up
their tax bracket from 25% to 28%.[63] Obama has proposed a tax plan which includes tax credits
to lower the amount of taxes paid. It is argued that the typical middle-class family would receive
over $1,000 in tax relief, with tax payments that are 20% lower than they faced under President
Ronald Reagan. According to the Tax Policy Center, the Obama plan provides three times as
much tax relief for middle-class families as the McCain plan.[64] Obama's plan includes a
temporary "making work pay" program, which gives a tax credit at 6.2% of earned income up to
$400 for single workers (making less than $75,000/yr), and an $800 for married couples (making
less than $150,000/yr), expiring at the end of 2010.[65] Families making more than $250,000
would pay either the same or lower income tax rates than they paid in the 1990s, leaving no
family to pay higher income tax rates than they would have paid in the 1990s. For the wealthiest
2% of families, Obama plans to reverse a portion of the tax cuts they have received over the past
eight years. Dividend rates would be 39 percent lower than what President George W. Bush
proposed in his 2001 tax cut.[64]
Obama’s plan is to cut income taxes overall, which he states would reduce revenues to below the
levels that prevailed under Ronald Reagan (less than 18.2 percent of GDP). Obama argues that
his plan is a net tax cut, and that his tax relief for middle class families is larger than the revenue
raised by his tax changes for families over $250,000. Obama plans to pay for the tax changes
while bringing down the budget deficit by cutting unnecessary spending.[64]
In The Audacity of Hope and the Blueprint for Change[67] Obama advocates responding to the
"precarious budget situation" by eliminating "tax credits that have outlived their usefulness",
closing corporate tax loopholes, and restoring the PAYGO policy that prohibits increases in
federal spending without a way to compensate for the lost revenue.[68]
During an October 13, 2008 speech at Toledo, Ohio, Obama said that for the next two years, he
favors a $3,000 tax credit to businesses for each new full time employee whom they hire above
the number in their current work force.[69]
For people with incomes above $250,000, Obama wants to reduce their charitable tax deduction
from 35 cents for each dollar donated to 28 cents for each dollar donated, to match the level of
deductions for people making less than $250,000.[70] In a press conference on March 24, 2009,
Obama stated that he wanted to return to the rate that existed in the Reagan administration.[71]
"There's very little evidence that this has a significant impact on charitable giving," said Obama.
"I'll tell you what has a significant impact on charitable giving, is a financial crisis and an
economy that's contracting. And so the most important thing that I can do for charitable giving is
to fix the economy, to get banks lending again, to get businesses opening their doors again, to get
people back to work again."[71]
Obama said he wanted to "look at raising the capital gains tax for purposes of fairness."[72]
In response to a possible shortfall in Social Security funding, Obama has endorsed imposition of
a new FICA tax on incomes above $250,000. Currently, income above $106,800 is exempt from
such taxation. Obama opposed Bush's proposal for privatization of Social Security.[73]
Obama has spoken out numerous times against the influence of lobbying in the United
States.[74][75] He also co-sponsored legislation that limits lobbyists' influence by mandating that
lawmakers pay full charter fare when flying on lobbyists' corporate jets.[76]
On January 24, 2007, in reference to his stated plan to take public financing should he procure
the nomination, he said, "I think that for a time, the presidential public financing system works."
On November 27, he said, "I will aggressively pursue an agreement with the Republican
nominee to preserve a publicly financed general election," and on February 28, 2008, he wrote
that he planned to "aggressively pursue" a publicly financed campaign, later promising to sit
down with John McCain to ensure "a public system" of campaign financing is preserved.[77]
However, on June 19, 2008, he opted out of public campaign financing and declared, "I support a
robust system of public financing of elections (...) but the public financing of presidential
elections as it exists today is broken."[78][79] Furthermore he has maintained that he will not take
contributions from federal lobbyists and special interests during his 2008 presidential campaign.
According to his website, Obama would create an online database of lobbying reports, campaign
finance filings and ethics records, and would create an independent watchdog agency to oversee
congressional ethical violations.
[edit] Immigration
Obama supports a guest worker program,[80] and voted in favor of the Bush administration
backed Comprehensive Immigration Reform Act of 2007. Obama has said that he "will not
support any bill that does not provide [an] earned path to citizenship for the undocumented
population."
Obama has said that he does not believe that the 12 million illegal immigrants should be
deported. He said "It's not going to happen. We're not going to go round them up ... We should
give them a pathway to citizenship."[81]
In September 2006, Obama voted for the Secure Fence Act, authorizing the construction of
700 miles (1,100 km) of fencing along the United States–Mexico border.[82]
In June 2007, Obama voted against declaring English as the official language of the federal
government.[84]
In November 2007, Obama stated that, "We can … go a long way toward meeting industry’s
need for skilled workers with Americans. Until we have achieved that, I will support a temporary
increase in the H-1B visa program as a stopgap measure until we can reform our immigration
system comprehensively."[84]
In July 2007, Obama said, "Find out how many senators appeared before an immigration rally
last year. Who was talking the talk, and who walked the walk -- because I walked…I didn't run
away from the issue, and I didn't just talk about it in front of Latino audiences."[85][86]
"I believe we must secure our borders, fix our broken immigration bureaucracy, and require the
12 million undocumented to get on a responsible path to citizenship. I will also increase the
number of people we allow in the country legally to a level that unites families and meets the
demand for jobs employers cannot fill" "I support comprehensive immigration reform that
includes improving our visa programmes, including the H-1B programme, to attract some of the
world's most talented people to America", Obama said in an interview with IANS in October
2008.[87]
Obama writes in his most recent book, The Audacity of Hope: "Affirmative action programs,
when properly structured, can open up opportunities otherwise closed to qualified minorities
without diminishing opportunities for white students."[90] In July, Obama stated, "I am a strong
supporter of affirmative action when properly structured so that it is not just a quota, but it is
acknowledging and taking into account some of the hardships and difficulties that communities
of color may have experienced, continue to experience, and it also speaks to the value of
diversity in all walks of American life."[91] He has indicated support for affirmative action based
on class, not just race, (q.v. redistributive change) in comments where he said that his daughters
should be treated by prospective colleges and employers as people that grew up with a privileged
background.[92]
[edit] Trade
Barack Obama made critical statements about the North American Free Trade Agreement
(NAFTA) during the Democratic primaries, calling the trade agreement "devastating" and "a big
mistake".[93] In February 2008, a Canadian diplomatic memo[94] surfaced, which alleged that
Obama's economic advisor Austan Goolsbee had met with Canadian consular officials in
Chicago and told them to disregard Obama's campaign rhetoric regarding NAFTA, a charge the
Obama campaign later denied (see Barack Obama presidential primary campaign, 2008#NAFTA
controversy).[93] Obama also noted that free trade comes with its own costs: he believes the
displacement of Mexican farmers by more efficient American counterparts has led to increased
immigration to the United States from that country.[93]
In July 2008, after winning the primary, Obama announced that he wants to expand federal
funding of faith-based programs and establish a "Council for Faith-Based and Neighborhood
Partnerships". He specified that, under his plan, federal money given to places of worship could
only be used on secular programs. In particular, he mentioned, on July 1 in Zanesville, Ohio, that
"support for social services to the poor and the needy have consistently been underfunded". He
went on to praise President Bush's efforts, but contended that the current administration's plan
never managed to "rally the armies of compassion."[95][96]
On September 22, 2008, Obama said, "I am not a Democrat who believes that we can or should
defend every government program just because it's there... We will fire government managers
who aren't getting results, we will cut funding for programs that are wasting your money and we
will use technology and lessons from the private sector to improve efficiency across every level
of government... The only way we can do all this without leaving our children with an even
larger debt is if Washington starts taking responsibility for every dime that it spends."[97]
On October 13, 2008, Obama said that he wanted Congress to double its guaranteed loans to the
U.S. automobile industry from $25 billion to $50 billion.[69]