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MONTHLY ARCHIVES
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Obama Sits Down with State Guvs to Stem Economic Slowdown
December 02, 2008 7:26 AM
ABC News’ Matt Jaffe reports from Philadelphia: After unveiling his economic team last week in Chicago, President-elect Barack Obama arrived in Philadelphia Monday for discussions with the nation’s governors on how to fix the country’s ongoing financial crisis.
Obama met Monday evening with Democratic governors at a private reception near Independence Hall to hear what federal help the states want from the incoming administration, the night before a Tuesday morning meeting with governors from both sides of the aisle.
"The main focus is the bipartisan meeting Tuesday," a senior Obama official told ABC News. "The President-elect genuinely wants to hear the governors' concerns and act on that."
Accompanied by Vice President-elect Joe Biden, Obama will speak to a summit of the National Governors Association hosted by Pennsylvania Gov. Ed Rendell (D), chair of the NGA, and Vermont Gov. Jim Douglas (R), the vice chair, just a day after the National Bureau of Economic Research formally announced that the nation had entered a recession in December 2007.
For the governors, help for their states cannot come soon enough: 20 states have already cut over $7 billion from their 2009 budgets and 30 states expect additional short-falls totaling more than $30 billion.
“The slowing economy is resulting in growing unemployment, increased demand for state services and significant declines in state revenues,” Douglas said Monday.
“As governors work to reduce budget shortfalls and plan for the coming fiscal year, we need to be partners in an economic recovery strategy that includes additional funding for Medicaid and investments in infrastructure,” he added.
Rendell, who will host the economic summit in the city where he used to be mayor, also emphasized the importance of infrastructure investments.
“These immediate solutions will drive economic recovery,” he said. “Investments in ready-to-go infrastructure projects are a cost-effective creator of high-paying jobs.”
“These investments should include a broad array of infrastructure projects including airports, bridges, highways, transit systems, ports, rails, clean water, sewers and broadband,” continued the Keystone State governor. “We should target high-priority projects so funds can be obligated and invested so that we will see the effects quickly.”
Only 10 days ago, Obama introduced a plan to save or create 2.5 million jobs in his first two years in office, in part by focusing on infrastructure projects such as rebuilding roads and bridges and modernizing schools.
The Illinois lawmaker has also urged Congress to have a massive economic stimulus package ready for him “right away” when he takes office January 20.
Among the many governors scheduled to attend Tuesday’s summit is one who Obama and Biden know all too well: Alaska’s Sarah Palin, the Republican vice presidential candidate.
But with Palin defeated, now the country’s financial crisis is Obama's to solve, aided by his Treasury Secretary pick Tim Geithner and National Economic Council director Larry Summers.
“People should –- should understand that help is on the way,” the President-elect said last Wednesday.
With their states suffering, the governors sure hope he’s right.
In Tuesday's meeting, Obama is expected to discuss his commitment to work with the governors.
"[T]he partnership we begin here must not –- and will not –- end here," An excerpt from his speech stated. "As President, I will not simply ask our nation's governors to help implement our economic recovery plan. I will ask you to help design that plan. Because if we're listening to our governors, we'll not only be doing what's right for our states, we'll be doing what's right for our country. That's how we'll grow our economy –- from the bottom-up. And that's how we'll put America on the path to long-term prosperity."
The President-elect is also expected to reach out to Republican governors and pledge to work together.
- Matt Jaffe
December 2, 2008 | Permalink | Share | User Comments (18)
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I don't think anybody should complain.
You all live as "serfs" just like me.
The few Elite run this world.
ie. Bilderberg, Northwoods,Bailouts,
Gulf of Tonkin, Monsanto, etc.
Mind your own business, squeek out a
happy existence before it all comes to
an end just like Rome.
Throughout history mankind has a tendency of repeating itself in various manners.America is the new Rome. Distracted by sports, blinded by TV. Just like the Caesars of old using the games to keep the people blind to the realities of the economy. Is anyone
aware of the Fema concentration type
camps located in hidden areas in the U.S.? What exactly do you think those are for?
I rest my case. You are controlled 100%.
The government is your master.
Posted by: supreme | Jan 3, 2009 11:26:30 AM
I assume the NIRB, National Infrastructure Reinvestment Bank, will be financing what Rendell refers to as the ready-to-go infrastructure projects. There should be accountability standards on the federal levels for the NIRB in addition to state levels, as Len suggested.
Posted by: kat | Dec 2, 2008 1:01:48 PM
If I'm hearing what Obama has said, his plan is to make the government the daddy the people go to when they need some more beer money. No more of that foolish reliance on private sector employers for income. Who needs private sector businesses? Just rebuild the economy from the bottom up. The money will come from the government and the masses will spend it to keep the economy prosperous. Our government will help all the starving people of the world, end war 'cause everbody's going to love us, end poverty, guarantee healthcare and education. We just have to make sure the government doesn't run out of checks. If the government runs out of money, no problem. Yeah sure, like that could happen. We'll just print some more or sell some treasury bills. Why didn't anyone think of this before? It's gonna be so cool!
Posted by: mmonroeliveson | Dec 2, 2008 1:01:07 PM
Amen brannigon I agree with you 100%, why can't the regular citizen get a bailout in life? when the people asking for the money already have millions in their bank account.
Posted by: cupidsrevenge | Dec 2, 2008 12:21:46 PM
Len -
Great suggestion. Good on you.
Posted by: Brooklyn Democrat | Dec 2, 2008 11:39:17 AM
All of a sudden the government is handing out money like candy! Now everybody is getting a hand out but the citizens of this country!Another day in the life! I could use some of that to send my kids to school, pay my bills, put food on my table and try to get out of debt! What about me? What about us?
Posted by: brannigon1 | Dec 2, 2008 11:21:28 AM
Dear what?,
You just proved my point. Did he do things wrong? Absolutely. But ideologues on both sides tend to point only to the bad and never give credit to the good, but with politicians from their own side are willing to pontificate, and rationalize and be measured about their appraisal.
I was specifically responding to Grey Matter's assumption that Bush had never met with the governors of the states. You can make the case that he did more things wrong than right, but assuming he never did anything right is a fallacy. There are countless Africans who've benefitted from his AIDS assistance who would likely agree. Heck, even Geldof gave him that much credit.
Posted by: Jen B. | Dec 2, 2008 10:47:07 AM
MarciellaG -
"Obama can't wait to start giving away the working taxpayers' money." Bush and Paulsen have already done an awesome job of giving it away...they haven't been very effective at following up and holding recipients responsible.
"I'd like to count the number of Obama voters looking for unemployment next year at this time." Given the economic mess that Bush is leaving us, unemployment may go as high as 10-15% next year. If that turns out to be the case, it won't just be Obama voters "looking for unemployment."
Posted by: Brooklyn Democrat | Dec 2, 2008 10:26:08 AM
The pundits demanded that the automakers show up with business plans in hand.
Demand the same of the Governors.
No block grants should be given to States without the specifications and the business plans first.
Posted by: len | Dec 2, 2008 10:24:08 AM
the hell is she doing there? cant she just dig a hole?
Posted by: lupercal | Dec 2, 2008 9:58:36 AM
“The slowing economy is resulting in growing unemployment, increased demand for state services and significant declines in state revenues,” Douglas said Monday.-----And This is why Obama's governors are doomed to fail, because they insist on attributing a slowing economy to govt. not spending enough.
Posted by: bluecollarbytes | Dec 2, 2008 9:11:34 AM
jen B,
right after 9/11-he stood on a fire truck and yelled through a bull horn like a cheerleader-the whole world is going to hear you pretty soon,-almost equal to inciting a mob-and then proceeded to tell the rest of the world and where they could put there goodwill for this country, we are going it alone.
let osama get a way, and quickly diverted attention to iraq-Iraq?-you know the rest of the story
on the war mr. bush declared
"Mission Accomplished" and the death toll is still rising.
on Katrina-he patted the fema director on the back and said "brownie, you are doing a good job"-while they were still trying to locate bodies.
on the gas prices-a reporter in a press conference asked what are you all doing to bring down the four dollar gas prices
mr bush looked puzzled and said four dollars-i didn't know gas was four dollars a gallon, that is the first i have heard of that.
Jen B, my point is, after so much of a blunder that has hurt so many people.
how does bush comeback and say,
"Well i did do somethings right",what pardoned the thanksgiving turkey?
the real point is jenb, on the BIG things for this country-mr. bush got it wrong, and the credit should go all to him.
Posted by: what? | Dec 2, 2008 9:07:41 AM
No MarciellaG,
We wanted bush or mccain to win and continue to countries economic downfall
so WE would ALL be standing in the unemployment line.
MarciellaG, after mr. bush and his eight years.
someone had to start to turn this country around. obama won that chance,
lets hope and pray for MY FAMILY AND YOUR FAMILY' SAKE he does a good job.
Posted by: what? | Dec 2, 2008 8:55:22 AM
I don't think Bush ever did that.
__________
Actually he did. But there are a lot of things that Bush has done and in some cases even done well that he'll either not get credit for or at the very least will be written off by ideologues as "not enough."
Posted by: Jen B. | Dec 2, 2008 8:50:47 AM
MarciellaG,
Hey, we guys tried it your way with a Republican- Bush (who royally screwed everything up), you can't blame almost 70million Americans for voting for the Democrat.
Why don't you give Obama a chance to be INAUGURATED first and see if he's "spreading the wealth" around and making you poorer. Our whole tax system is fundamentally socialist to begin with- you give the govt money, govt uses it to build roads and other stuff that benefit everybody.
I think it's great he's meeting with the individual governors about their concerns. I don't think Bush ever did that.
P.S Someone should tell Palin her constituents are pissed their governor has been MIA even after the election ended and hasn't been back to do her job.
Posted by: Grey Matter | Dec 2, 2008 8:38:29 AM
Obama will be naming Oprah as Secretary of Handouts. The automakers and the Wall Street/banking thieves will need to appear on her show and they will find a "surprise" taped to the bottom of their chairs. Free money from Obama which Oprah agrees to match dollar-for-dollar.
Posted by: JTexasRanger | Dec 2, 2008 8:26:41 AM
Obama can't wait to start giving away the working taxpayers' money. Well, you fools wanted a far left, LIBERAL, President and that's what you got.
I'd like to count the number of Obama voters in line for unemployment next year at this time.
Posted by: MarciellaG | Dec 2, 2008 8:19:32 AM
Is there any corporation, business, state, or individual who doesn't have their hand out asking for something? I don't feel sorry for these winers - they companies obviously don't know how to manage their businesses and the states are broke because greedy politicians make sure they get a piece of any action the state funds. As for individuals, they make me sick. They are all moaning they can't make ends meet, can't feed their families, can't do this, can't do that. Notice, however, that they can still afford their unnecessary cell phones.
They want handouts and they dump their pets on shelters because they are too cheap to buy pet food. They make sure they are in line for the free winter coats for their kids at the city giveaways. They take the free turkey,
use food stamps, don't pay their utility bills and want more public assistance. But, they can ALWAYS afford their cell phones and drugs.
Welcome to America, land of the lazy, overweight, and stupid.
Posted by: Lanevanderlyden | Dec 2, 2008 8:13:03 AM
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