What Does Obama Mean for Generation Debt?

The new president's first task is to control expectations for his many supporters, especially among the millions of young people who turned out for him in record numbers.

No, President-Elect Obama won't fix the economy overnight. And you are not getting a jetpack.

Among his likely policy proposals, here's what stands out for me in terms of young people's economic future. Keep in mind that we're all in this together--and we're in it for the long haul.

Jobs & The Economy: As if to underscore that he can't forestall the recession single-handedly, stock markets fell today and yesterday. Although he may be able to speed a second economic stimulus package for things like food stamps and unemployment even before the inauguration, longer-term his ideas may be stymied by the downturn.

A very important, swift proposal to rebuild our economy and create jobs by investing in green energy & infrastructure is laid out in detail in the Green Recovery report from the Center for American Progress and similarly in the activist Van Jones' new book The Green Collar Economy: How One Solution Can Fix Our Two Biggest Problems. Even conservative economists like Martin Feldstein back the idea that major federal spending, and quickly, is exactly the ticket to rebound the economy--rather than stimulating it by cutting taxes. Tax cuts aren't that favorable to young people anyway since we tend to be lower earners. Better to take advantage of training programs that can place you in good green collar jobs.

Student loans and Credit Cards: With a stronger majority in Congress, and lots of momentum for reform, it's easy to see Democratic advocates like Carl Levin and Christopher Dodd taking advantage to re-regulate the credit markets, increasing transparency and disclosure on credit cards and limiting fees and marketing to college students. While Obama's planned $4000 refundable tuition tax credit may be delayed due to budget constraints, more generous repayment plans for student loans passed last year--the Public Service Loan Forgiveness and Income Contingent Repayment Programs are likely to be continued and maybe even expanded as the hit to the budget is not as immediate.

Health Care: Unfortunately, the economic squeeze may make it harder for an Obama administration to act swiftly in expanding health insurance coverage, a key pocketbook issue for young people. It's up to all of us to continue pushing him on this issue. Initial proposals that could cost less and cover more under-30-year olds would be to increase federal support of state insurance pools for lower-income single adults, and possibly to support more state laws that require insurance companies to cover young adults through their parents' employers; an imperfect solution but it does increase access.

Follow Anya Kamenetz on Twitter: www.twitter.com/Anya1anya

Comments

[beaupritchard]

07:12 PM on 11/09/2008

"Keep in mind that we're all in this together--­and we're in it for the long haul"

If I had anything to impart to the younger generation and politics as it has been played in my generation it would be ... Beware those promising you a free lunch.

Both parties tend to want to spend your money ... democrats through taxing you currently ... republican­s by taxing your children through backdoor loans and a raising of the debt ceiling.

Democrats are more honest about their motive ... republican­s will lie to your face and stab you in the back to get what they want.

The one thing neither party wants is to return to the type of nationalis­m that pits your country and your countries policies in competitio­n with other countries and other countries policies. They've got their arms around their herd and want to live off each and every one of us rather than face the challenges of real competitio­n between nations and their counterpar­ts therein.

To that end realize "greed" as a motivating force for distributi­ng goods and services is not the only facet of human nature that can drive an economy. Unchecked it is dangerous ... even fatal ... to the many.

You have a chance with Obama if he's not swayed by the remnants of my generation­. For the first time our president is not philosophi­cally in line with corporate america. Corporate america (through money needed to be elected) does not own our president ... you do.

[Pdubya]

01:55 PM on 11/10/2008

excuse me? goldman sachs bundled contributi­ons 3:1, Obama/McCa­in.

Zbigniew Brzezinski­'s two sons run the foreign policy advisorshi­ps for both Obama and McCain.

Both supported the bailout.

The Democrats and turn-coat Neo-cons ignored their constituen­ts and passed the bailout.

I have a few more clues if you want to get one.

[beaupritchard]

06:50 PM on 11/09/2008

"Keep in mind that we're all in this together--­and we're in it for the long haul"

If I had anything to impart to the younger generation and politics as it has been played in my generation it would be ... Beware those promising you a free lunch.

Both parties tend to want to spend your money ... democrats through taxing you currently ... republican­s by taxing your children through backdoor loans and a raising of the debt ceiling.

Democrats are more honest about their motive ... republican­s will lie to your face and stab you in the back to get what they want.

The one thing neither party wants is to return to the type of nationalis­m that pits your country and your countries policies in competitio­n with other countries and other countries policies. They've got their arms around their herd and want to live off each and every one of us rather than face the challenges of real competitio­n between nations and their counterpar­ts therein.

To that end realize ... "greed" as a motivating force for distributi­ng goods and services is not the only facet of human nature that can drive an economy. Unchecked it is dangerous ... even fatal ... to the many.

You have a chance with Obama if he's not swayed by the remnants of my generation­. For the first time our president is not philosophi­cally in line with corporate america. Corporate america (through money needed to be elected) does not own our president ... you

[dadw5boys]

04:02 PM on 11/08/2008

TO HELL WITH CONSERVATI­VE ECONOMICS !!!!!!!

NOW IS THE TIME TO REALSE ALL TECHNOLOGY !!!!!!!!!

NO MORE LIMITED RELEASES OF TECHNOLOGY TO MAX OUT EACH SMALL SECTOR OF TECHNOLOGY BEFORE RELEASING NEW TECH.

TIME TO THINK STAR TRECK INSTEAD OF OLD FARTS !!!!!!!!

[joebhed]

06:55 PM on 11/07/2008

WOW !!

Increasing transparen­cy and disclosure of credit card bank schemes.

WOW !!

Yeah, that's REAL change we can believe in.

WOW !!

Thanks a lot, Barack.

Transparen­cy.

Yeah, that'll help the 32 percent interest charges that are befalling the less advantaged among us.

WOW.

Disclosure­.

Yeah, that'll help just a bunch.

And that's WITH an Obama presidency and Democratic control of the House and Senate.

You got Biden and you got Rahm.
So the best you can hope for in how they spell R-E-L-I-E-­F for squeezed credit card users is a whole barrel full of disclosure and transparen­cy.

Have a great four years.

[Sundialsvc4]

10:40 AM on 11/07/2008

Anya, I do believe that as we present policy-ide­as such as these, we must all remember that "the government­" really isn't "a source of money." Instead, it is a source of legal authority.

If the government were to "invent" another X-billion dollars out-of-now­here and "give it to us," what would that actually accomplish­? Nothing, really. We just made a bunch of banker's bad-debts come good, but only on paper. We didn't force the banker to change any of his practices. We didn't help the debtor. And, we didn't give the debtor a real source of real income to replace all that debt.

I think we have to go straight at the root-cause of these problems. First of all... "do the crime, do the time." Then, "no more usury." Then, start erasing any numbers from any ledger-boo­ks that do not represent real money. Our true effective inflation-­rate is, I'd wager, tens of thousands of percent. Our investment­s are tulip-bulb­s once more. But... that's all they ever were.

Let's face that bitter-pil­l, swallow it, and get back to work. This is, after all, America. "We Can Do It!"

[kstuff]

09:43 PM on 11/06/2008

Loan forgivenes­s kicks in after 10 years of work in the public sector. You have to make payments for 10 straight years while you're working in a low paying field, then they'll consider forgiving what's left of what you owe. Thanks, but wake me when the real help arrives.

[wittgene]

09:22 AM on 11/09/2008

Also, if your husband or wife makes a modest wage, your loan won't be forgiven. Bernie Sanders is bunch of hot air! I encourage you all to read the bill.