January 11th, 2008
03:11 PM ET
10 years ago

Clinton lays out economic stimulus plan

(CNN) - The economy, and more specifically, the sub-prime lending crisis, is fast becoming a central theme in Democrat Hillary Clinton’s message. On Friday, she called for an economic stimulus package that would help low-income families keep their homes and stay warm this winter – and could come with a $110 billion price tag.

Clinton has said she fears a recession, although her campaign has avoided describing the economy’s current state in that language.

On Thursday evening, the New York senator canvassed a primarily Latino neighborhood in Central Las Vegas and periodically surveyed voters about the impact of housing foreclosures. She held a roundtable at a local restaurant with people who had lost their homes.

Clinton and her daughter Chelsea visited Gilberto Santana, who is out of work and having to borrow money from friends to help pay his bills, including his mortgage. Santana, a Clinton supporter, is also a member of the Las Vegas culinary union, a group that endorsed Senator Barack Obama earlier this week.

On Friday, the presidential hopeful said Congress should work with the White House to pass a $70 billion economic boost, and to follow that with as much as $40 billion in tax refunds.

The bill proposed Friday would provide $10 billion to extend unemployment insurance, create a $30 billion fund to help states and local governments deal with the housing crisis, provide $25 billion in emergency energy, and set a 90-day moratorium on sub-prime mortgages of at least five years, among other elements of the plan.

With Nevada’s foreclosure rates among the highest in the nation, Clinton hopes her economic focus will play well among the state’s working and middle class. The loss of the culinary endorsement and the myriad of hurdles campaigns face in educating Nevada’s voters about next week’s caucuses could prove problematic for Clinton.

“I’m very committed to reaching out and meeting the people in this state and the leaders that I have here in my campaign are very confident that we’ll do very well,” she told reporters. “It takes a lot of hard work, it takes a lot of outreach and shoe leather and phone calling but that’s what we’re doing and we’re prepared to just you know pull out all the stops to be as successful as possible,” she said. Some of Clinton’s Iowa field staff has relocated to Nevada.

Clinton beat Obama in New Hampshire among middle- to lower- income voters, some of which may have not been able to turn out in Iowa because the caucuses were held at night. Nevada’s caucuses will be held on a Saturday morning, but Clinton says problems with the caucus system persist.

“When I realized you only had a limited period of time on one day to have your voices heard that is troubling to me. And in the situation of a caucus people who work during that time, they're disenfranchised,” she said. “We're going to do everything we can between now and January 19 to reach as many people as possible, but there will be a lot of people who even if they want to come, can't, so I think it's a problem.”

Both Clinton and Obama plan to visit Nevada several times between now and next Saturday’s contest and both candidates are about equally invested in television advertising.

“I need to get a very clear message as to what I have done and what I will do,” Clinton said in response to a question about what she learned from her New Hampshire primary win. “There’s a big difference between talking and doing and rhetoric and reality and I’m going to be sure that the people here in Nevada and across the country as we move up on all these contests know that I’m not just telling them what I will do and asking them to take it on faith, I’ve done it.”

Clinton’s economic speech Friday in Los Angles garnered quite a bit of free media attention, a crucial part of any campaign’s Golden State strategy. While California has always been friendly to the Clintons, an unaffiliated Democratic strategist said what will make the difference for either Clinton or Obama in the February 5 primary here will be wins in Nevada, South Carolina and Florida.

- CNN Senior Political Producer Sasha Johnson

Filed under: Hillary Clinton
soundoff (80 Responses)
  1. Independent in IA

    Oh. Sure.....right. And this will be paid for.....how? By borrowing even more money from China or Taiwan? By bankrupting Social Security? By saving money from the halt of border-fence completion? Give me a break!

    January 12, 2008 08:22 am at 8:22 am |
  2. Terry, El Paso, TX

    "... I don't really agree with the gov't using my hard earned money to bail out someone who was too stupid to think they could afford their mortgage. Now I know this problem also concerns those in the 'predatory lending' category, but these homeowners should have known better. If they couldn't afford a regular mortgage, what makes them think a subprime would be better. OHHHH, the 0% APR and no down payment thing!!! They should have known it would come back and bite them in the @$$." – Cat, Costa Mesa CA

    Cat and many others hold the delusion that the economy is a level playing field.

    On the one side we have a married couple who graduated from high school (only 25% of Americans have a college degree), no economics courses, no household accounting courses, and the mathematical skills of the typical high school graduate.

    On the other side, we have giant financial corporations with hundreds of economists, accountants, marketing experts, and statisticians with graduate degrees. Their plan is to loan a bunch of people a lot of money and collect huge profit-sharing bonuses at the end of the year. They will immediately sell the subprime mortgage to another company so they are not left holding the bag. By the time the housing bubble pops, if ever, they will be in another executive position with another company – or be promoted to higher management in their own company. The people who made the decisions to create and market subprime loans to their gullible customers made sure that they – personally – suffer NO consequence from the marketing of those loans. The subprime concept was a brilliant one, it added billions to the personal fortunes of those who marketed them, and it left someone else on the hook

    Enough about that. What I want to ask Cat is: why should I pay MY hard-earned money for FEMA to bail out Californians several times a year from fires, floods, storms, and earthquakes? I had the foresite to live in El Paso, TX, where there are no weather problems, no fires, no earthquakes, and we call our floods "gully-washers?" If you want to live in a fire zone, hire a private company to put out the fires around your house. Don't expect ME to pony up my tax dollars so Californians can continue to live in la-la land.

    January 12, 2008 09:17 am at 9:17 am |
  3. Kevin Topeka, KS

    Man, I hate these "how are you gonna pay for it?" or "where's the money gonna come from" comments, every time a candidate actually sets forth a plan for changing this country. Before you make these comments, explain to me where the money for the Iraq war is coming from, how are we gonna pay for it? At least these "ideas" that a candidate puts forth are positive in nature. Our granchildren's grandchildren will be paying for this war and if "something" isn't done, now, they will be trying to do it in a failed economy, with a worthless dollar and no health insurance. This is exactly what these candidates should be doing, explaining to the voters what ideas they have to pull the country out of the mess GW Bush and a Republican controlled congress has put us in. I know things have to change, that's a given, but tell me how you're gonna change it. The best ideas will get my vote.

    January 12, 2008 09:26 am at 9:26 am |
  4. Trish

    Go Hillary Go!

    January 12, 2008 10:16 am at 10:16 am |
  5. Phil, Memphis

    Unless you have been sleeping, you have heard that the major financial publications have announced we are in a recession, and the stock market is tanking. It is amusing to see all of the "where will the money come from" questions while we are spending over a trillion dollars to fight a war we were lied into and to prop up a country that doesn't want us there. How do we plan on paying for that? Oh, by CUTTING taxes. yeah that's it. Give all kinds of money to the military establsihment and then reduce our income. Genius! Lets ask the real question.

    With no job growth, a recession , and people losing their homes, where will all these new poor people live and work? I am thankful I was not alive during the great depression. Would everyone like another? Clinton at least offers a plan. So all of you experts out there, what is yours?

    January 12, 2008 10:22 am at 10:22 am |
  6. michael jarboe

    Instead of asking, why don't people do some research for themselves? (I know the answer to that one, sadly..)

    "In 35 years of experience, (insert whiny voice) what has she done?" Just ONE example: HRC, almost 20 years ago, was appointed the first woman on the board of directors at Wallmart. Much to the frustration of her male board members, she ushered through many policies that created a host of better opportunities for women in America's largest retail giant. Changes that not only helped the women, but improved Wallmart as well.

    Few people knew her at the time, no name recognition, no media attention, she did it because it's what she's always done. Working for and giving a voice to those that don't have one. Instead of waiting for people to GIVE you answers, try informing yourselves.

    January 12, 2008 10:36 am at 10:36 am |
  7. s.positive

    Is this Higher Taxes or what anyone?

    January 12, 2008 10:42 am at 10:42 am |
  8. s.positive

    AMERICA should like everyone else in the world wake up to reality and tighten its belt, get the fiscal policy right by putting the country on the path to reducing our deficit. YOU work to earn money but is seems this plan continues the shame of borrowing to survive. WAKE UP AMERICA we cannot continue to borrow from China and remain a super power. GET REAL

    January 12, 2008 11:09 am at 11:09 am |
  9. jane

    I agree with Phil in Memphis. We spend on the war like it was nothing and it hasn't helped my wallet any. Let's spend that money at home where it can do some real good. Tax cuts are useless for the middle class with the rate of inflation, but raising corporate taxes will raise a ton of money to be used for this package or others like it. Hillary at least is trying to give real answers to our economic plight. She is showing experience here!

    January 12, 2008 11:17 am at 11:17 am |
  10. Phil Memphis, TN

    Yeah Maureen, right. A candidate should just take every poor person they meet to their house and create a job for them out fo thin air, and if they don;t then they are not sincere. Give me a break.

    January 12, 2008 11:25 am at 11:25 am |
  11. hello

    vote for Hillary and live better life.

    Hillary 2008!

    January 12, 2008 12:03 pm at 12:03 pm |
  12. hello

    God bless American, God bless Hillary!

    January 12, 2008 12:07 pm at 12:07 pm |
  13. donah

    Wilhelmina... you´re Dutch.... you stink

    January 12, 2008 12:13 pm at 12:13 pm |
  14. donah

    now where is my comment ???

    January 12, 2008 12:23 pm at 12:23 pm |
  15. Reality Check

    While Obama preaches Hillary delivers as usual;it is time for all of us to do what NH did and choose the right candidate for America's future:Hillary Clinton.

    January 12, 2008 12:32 pm at 12:32 pm |
  16. JS, California

    Someone who was on the corporate board at Walmart shouldn't be allowed to say they are an ally to the working poor.

    January 12, 2008 12:46 pm at 12:46 pm |
  17. John

    All of you whiners about higher taxes where have you been for the last seven years when the Bush administration and Republicans in Congress spent this country into insurmountable debt? Don't y ou think your children and grandchildren won't be paying higher taxes on this the rest of thier lives.

    January 12, 2008 12:55 pm at 12:55 pm |
  18. Tim, Arkansas

    Hillary plans to spend Billions on the Economy and Healthcare, but she never explains where the money is coming from. Where is the money coming from Hillary??? Putting us in debt to China by borrowing like Bill did???

    Most likely she plans to borrow money from other countrys, which lowers the value of the dollar, which will hurt the economy! Plus end the Bush Tax Cuts, which would mean higher taxes for everyone, the rich, middle class, and poor!!!!

    Obama's plans are so much better!!! His plans spend much less to help the lower and middle class with healthcare and improving the economy. The highest 1% of Billionares pay for it by going to the Tax Rates they had before Bush changed the Tax Laws. So the Lower and Middle Class pay the same taxes as we do now, while receiving better healthcare and an improved econony. While the richest 1% of Americans are paying for it by simply going to the Tax Rates they used to pay 8 years ago. BRILLIANT!!!!! Obama is the one!!!!! Obama 08!!!

    January 12, 2008 01:32 pm at 1:32 pm |
  19. RuthieM

    What's she gonna promise next, a pink Cadillac?
    The only reason Hillary Clinton is thrusting this 35 years experience out there to the American people is because she absolutely wants them to forget she voted to invade Iraq. She wants the American people to ignore the blood that's on her hands, American and Iraqi. That's why she keeps brain washing 35 years 35 years 35 years 35 years. Dig deep and you will see there was nothing done in those 35 years other than her being in the senate and on the face of the earth. This '35 years' is a good offense, a great distraction, and as long as the people take it to their bosom, she wil continue it, she sees it works. It's a good offense which is the best defense, an offense. Hillary is not strong, she's no stronger than any other woman, we all are built to have babies. She is not presidential. Bill wants to get back in the white house and this is their modus operandi to get him back in there. But as Mark Simon on WABC brought up this morning on his radio show, would it be illegal for Bill Clinton to be back in the white house since a president doesn't serve any more than 2 terms which he has done? And since Hillary claims to have worked on everything he did, that would mean that she was in the white house 2 terms too so that would mean their returning would be illegal(? ). A very very good question. Hm...

    January 12, 2008 01:33 pm at 1:33 pm |
  20. Tom Davie

    You know what the BIG difference here is?

    Clinton has never been AFRAID to put her change into action.

    We all know darn well that anyone can RIP APART any plan. It doesnt matter if GOD himself endorsed the plan, people who want Obama to will find holes in it.

    The point is all the candidates talk about CHANGE, but NONE of them put out a PLAN to back it up. They talk in GENERALITIES to get VOTES.

    This plan is to help people . Not bailout banks. Not suck up to the young voters . Its a REAL plan .

    Even if you HATE hillary clinton you have to give her credit for the ONLY candidate who has stepped out with a REAL plan with REAL numbers.

    Its just ridiculous you guys FALL for candidates who talk you in circles with no substance.

    I watched the Republican debate the other day and NONE of the candidates talked about HOW they plan to put their big talk into action.

    Only Ron Paul ever asked how they planned to pay for their big 'tough talk' .

    The country is going into recession and we americans are in BIG TROUBLE .

    We got no time to screw around with the middle east or anything else. We cant afford it and could NEVER afford it. We just printed up the money.

    A Clinton Administration will NOT print up the money and WILL balance the budget.

    January 12, 2008 01:51 pm at 1:51 pm |
  21. Ryan

    As a Ron Paul supporter, I must say that this is a very good economic stimulus plan, for the basic mechanics of it. The Senator pre-empted unemployment cost overruns, provided a necessary moratorium which will allow lower interest rates (barring fed inaction) and stave off many foreclosures. The plan also put responsibility in state's hands so they can more individually target the underlying economics of the housing crisis in their own region. Finally, the proposal addresses the need for stocking up on oil and vehicle-usable alternative energy. The plan will cost-effectively delay a recession and may weather out the downturn enough to stabilize the economy.

    Overall, I have to say this is the best economic plan for the Mortgage Situation that I have seen to date.

    Qualifications for judgment: BA in int'l econ from GW; Owen-Vanderbilt business and law student.

    January 12, 2008 02:23 pm at 2:23 pm |
  22. David Hightower San Francisco, CA

    Did someone actually compare Bush and Obama???

    Seriously though, for all of you cliche-using one-liner specialists up there:

    As a country we need to put all of the partisan politics and the "if you're not for me you're my enemy" mentality behind us. Clinton already has a 47% disapproval rating...AND SHE ISN'T EVEN THE DEM CANDIDATE YET!!! How is that going to bring the country together? Let's put it another way: would any of the libs reading this website EVER vote for another Bush in office? Well that is the way conservatives feel about the Clintons. It's not rocket science people.

    We need someone to unite us...someone who realizes that we may disagree but we are all still citizens of the same country. Obama has consistently received support across the isle. Just today the Republican gov. of SC wrote an op-ed praising the type of campaign that Obama is running. Time and again Obama has demonstrated that he knows how to get things done (cooperation). Another Clinton Administration would be mired in the same gridlock the Clinton #1 faced (and one that strikingly resembles our current state of government.)

    Moreover, Obama has the ability to repair our reputation abroad. I remember when America was respected throughout the world and our great nation stood for freedom, opportunity and hard work, not greed, corruption and arrogance.
    Look at what France and Germany have written about Obama in the past week or two. Comparisons to JFK / MLK Jr. / and Abraham Lincoln (yes you read that correctly) have been appearing consistently. I think we can all agree that is a pretty amazing group to be compared to (and sad since they were all assassinated)

    As a community organizer in Illinois, Obama showed the type of leadership that is truly effective. Other than the patriot act, what level of government has a daily effect on the lives of citizens...state and local government. These are the people who shape the communities that we live in, they just don't get the respect / spotlight they deserve. Obama has been making a difference in the community for a long time now...just because he wasn't in the national spotlight does not mean he doesn't have the experience.

    If you don't want to vote for the guy that is one thing, but don't turn to the type of devisive partisan politics generally reserved for conservatives and liberals. Come on man, they share a lot of the same views and belong to the same party. This just gives the right-wingers more ammunition in the next presidential election.

    January 12, 2008 02:28 pm at 2:28 pm |
  23. DB

    It is easy to say, lets just run a deficit for a few years but who is going to pay this. Not Hillary's generation, the Baby Boomers. What is my generation going to have? What about my children's?

    People need to stop thinking about them selfs and what is good for the country. Fix the tax loop holes that help the few, reduce benefits (Social Security) so it can be viable long term, and stop bailing out poor decisions. Use the money to educate, stimulate and enhance the country.

    I am not for the war but think of it as a a bad purchase, we are still stuck paying for it, even though now we don't want it.

    People say Obama is void of substance, but what is better, being vague and working on specifics latter, or promising the moon with no real plan to get there?

    January 12, 2008 02:28 pm at 2:28 pm |
  24. Yale is Great

    Greed is the the fuel for our great economy.There will always be losers and winners.Unbridled Capitalism gives everyone the chance to strike it rich.The little fish get eaten and I get bigger.No bail outs and no mercy.

    January 12, 2008 02:34 pm at 2:34 pm |
  25. Maris

    Gary, my friend, I have posted many facts supporting my case for Hillary. However, what I realized is that no matter how much factual information I provide, people fail to listen. So that is why I kept it short and sweet, and no, I am not voting for her just because she is a woman (but I like the change there), but because she is the most qualified. I have spent 7 straight days researching each candidate and can flood you with information if you wish. But in blogs like these, most people don't have the time or patience to read postings to completion. Thank you, and please do not dare call me shallow because I have 50+ pages of data that I've gatherd about each candidate and happen to be quite an accomplished person myself and overcame greater obstacles than Barack Obama. GO HILLARY!!!!

    January 12, 2008 06:49 pm at 6:49 pm |
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