People across North Carolina are frustrated with their economic reality. Our nation’s economy lost 80,000 jobs last month. For those who do have jobs, take-home pay buys less. The cost of gas, housing and food are rising. And most feel that politicians are more interested in protecting campaign contributors than regular citizens.
Millions of people this year are in danger of losing their homes to foreclosure. Many families who have made their monthly mortgages on time will see their home values plummet as their neighborhoods become populated with vacant homes. Approximately 20,000 families lose their home every week. Real solutions are needed now. But, the Bush administration has done little to provide relief for these families. Congress has not done much better. The Foreclosure Prevention Bill in the Senate offers billions of dollars to big campaign donors like mortgage companies and home builders who played a role in getting us into this mess in the first place. But there is little help for home owners whose property is losing value or worse.
Inaction and failed policies have widened the gap between the rich and the poor. A lack of responsible oversight has fostered a weak financial system that could wreck our economy—even more. What we need now is real economic development in this state and this country that benefits everyone, not just those at the top. We need an economic policy that rewards hard work and sacrifice, not who your friends are.
JIM NEAL'S PLAN
Social Investment
I think Warren Buffet is the wealthiest man in the nation, if not the world. Consider this: Buffet (who’s a very progressive Democrat) made his fortune by making long-term investments in businesses, not through short-term trading. He’s a savvy guy, and he recently donated all of his wealth to the Bill and Melinda Gates Foundation, ranking him as one of the biggest philanthropists of all time.
I like the way he thinks about long-term gain and not short-term payoff. In a similar fashion, I believe that we as a nation need to begin making savvy, long-term investments of our nation’s wealth—with a view to the future and to increasing the prosperity and social fabric of our nation. Americans need their representatives to drive investment in our people, in our communities, and in our shared economic prosperity. We need to bring innovation, entrepreneurial spirit and real-world experience to the well of the US Senate. I am committed to pushing for real economic development that works for all North Carolinians, especially those living in our rural and inner-city communities.
My economic solutions are grounded in reprioritizing the way we spend our nation’s wealth, making smart social investments that produce jobs and strengthen communities. In the US Senate, I will put these initiatives at the top of my list:
I will work to create a 21st century Home Owners Loan Corporation to address the overwhelming mortgage crisis. Such a government agency would buy mortgages that have been bundled into securities by Wall Street- at their fair market value-- and then unbundled them and renegotiate the terms with homeowners who face foreclosure from their primary residences on more manageable terms. Such an agency, initially pioneered by FDR in 1933, refinanced 1 million mortgages for homeowners facing a similar crisis; when the original HOLC closed in the early 1960s, it returned in full our nation’s investment-- plus a profit. It helped families survive through a rough economic transition and lent stability to communities.
I will initiate a "home-grown wealth" and entrepreneurial development plan to build quality, sustainable industries and small business in North Carolina, specifically in rural and poverty-stricken communities. We must undertake with a sense of urgency an Apollo-like project to develop alternative energy sources—such as wind, solar and biofuels. Green technology development and innovation will foster a cleaner environment, provide jobs which will stay in our state and our nation, build stronger communities and provide the USA with a leading-by-action posture from which to negotiate with other nations that are major emitters of greenhouse gases. Similarly, I will work to invest in our crumbling infrastructure and increasing so-called seed capital for the development of small businesses—a more expansive SBA micro-lending program, for example.
I will bolster educational opportunities by increasing investment in teacher pay, parity between suburban and rural and inner-city schools, universal Pre-K and after-school programs, and access to college education. I support investment in what I’ll call a Renewable Youth Corps Program whereby young people can opt to borrow from the government the full costs of their education—and repay the investment which we as a nation have made in their education through participation in public service, be it in the classroom, after-school mentoring programs, health care clinics or the delivery of social services to those most in need. Education is the key to upward mobility- a social good. And, bringing together young people from all walks of life working for their country will reinforce our sense of shared identity as Americans.
How to Pay?
Elected officials, particularly at election time, sound like walking ATMs when discussing economic policy. So, I’d like to offer a few thoughts on how we might re-allocate resources to fund the sort of social investments I’ve outlined above.
I would vote to repeal the Bush tax cuts for the wealthiest. It was irresponsible tax and fiscal policy, did nothing to stimulate the economy, and was targeted at the wrong people. I will work toward revamping the tax code to reduce the burden on working families and to remove loopholes that give US companies tax shelter through offshore corporate tax havens.
I will not vote for further funding of the war in Iraq until the administration—unilaterally or through negotiation with the Congress—sets forth a plan the bring our troops home safely and quickly. Using the power of the purse, the bluntest tool in the Congress’ powers, is the only way in which we’ll be able to end this war—and to suggest that so doing is not supporting our troops is, well, the words of someone who pays more attention to bumper stickers than the voices across our state and nation. Our military leadership is most qualified to provide the blueprint for such a withdrawal plan—but only after they’ve been given the order to do so. However, this isn’t going to happen until you elected people like me to the Congress and insure that we don’t end up with Senator McCain in the White House.
The cost of our health care system—twice that per capita of any other nation in the world—is bankrupting our nation. By providing all Americans with access to universal health care coverage, they’ll move away from the ER where so many uninsured are turning for sick care that’s 3x as expensive as is preventative health care in a general practitioners office or a health care clinic. By imposing a standard technology platform for all providers and using technology to manage people’s health care, not just to deny them health care coverage, we can drive the most glaring inefficiency in the cost of health care in America down: administrative costs, which account for fully 33% of every dollar we spend on health care.
The steps I’ve outlined would re-allocate trillions toward social investment in our country.
In summary, my vision for America is an America where middle class families have the resources and opportunities to thrive in a 21st century economy. An America where the strength of our economy is rooted in middle class success. An America where small businesses and entrepreneurial endeavors are rewarded. An America where an education is a right and not a privilege. An America that focuses on we, not me.
And, an America without elected officials who fail to put the interests of their constituents on the front burner—and move to the back burner their loyalties to special interest groups, wealthy donors and their own tone-deaf political ambitions.
http://jimnealforsenate.com/