Hillary: $70 Billion Needed to Stop Recession

Posted: Jan 11, 2008 3:48 PM
Hillary: $70 Billion Needed to Stop Recession

Hillary Clinton wants voters to believe the country is entering a recession and a $70 billion subsidy package for low-income Americans is needed to keep the economy afloat.

Clinton laid out the details of this plan at the IBEW Hall in Commerce, California Friday—a state with significant “Tsunami Tuesday” clout that will send 441 delegates to the Democratic nominating convention. "This economy may be working for some people, but it sure isn't working for everybody," Clinton said.

It includes $30 billion fund to help subprime mortgage borrowers to make their payments, $25 billion for the low-income to pay heating bills, $10 billion to expand unemployed insurance and $5 billion to “jumpstart green collar job growth.”

On December 5, Clinton made a speech on Wall Street that proposed spending $5 billion to pay for an “emergency housing crisis fund” for homeowners. The package she unveiled represents a $25 billion increase to such a fund.

The Republican National Committee has been keeping track of the cost of all of the plans Clinton has said she would enact as President and added the cost of this package to their tally. According to their calculations, one term of Hillary Clinton’s presidency would cost taxpayers $848.6 billion.

Clinton’s plan also contains a $40 billion tax rebate for what she calls “hardworking” families “if the economy continues to worsen.” It is unclear what standards would be used to define who is “hardworking” and when the economy “worsens.” Clinton stressed only low and middle income Americans would get the rebate though. "Not to the wealthy," she said. "They have more than gotten their share of our tax dollars."

Clinton’s plan is predicated on the notion that the United States is close to a recession and Americans will need government assistance. Her campaign issued a formal memo on Friday that says: “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.” Clinton repeated that line from the memo in her address.

On the campaign trail, Clinton has issued repeated warnings of a recession. Clinton told voters in New Hampshire, “I think we’re about to slip into recession, and we’ve got to take action now.” Link: http://www.nydailynews.com/blogs/dc/2008/01/clinton-predicts-recession.html

She said it again at a stop in Nevada yesterday. “I think we're slipping toward a recession,” Clinton said. “A couple of people that I met on the street, they work in construction. They tell me it's slowed down.”

In her pursuit for the Democratic nomination for President, Clinton has fought hard to elicit support from low-income voters. A Politico story previewed her “economic stimulus” plan recognized this with a headline that read: “Clinton econ plan aimed at struggling Dems.”

Former White House senior advisor Karl Rove attributed Clinton’s working class appeal to her narrow New Hampshire primary win. In a Wall Street Journal op-ed titled “Why Hillary Won,” Rove bluntly wrote: “Mrs. Clinton won the beer drinkers, Mr. Obama the white wine crowd. And there are more beer drinkers than wine swillers in the Democratic Party.”