Economy The policies in this sector will address the pressing economic concerns that challenge our communities, our nation and our world. Policy problems of particular concern include the complex tax system, commercial regulation, government spending and international trade issues.

Policies within this sector:
Financial Crisis Responsibility Fee proposed by President Barack Obama, The White House
Background:

President Obama introduced a fee on financial institutions benefitting from the bailout to be detailed in the forthcoming budget. The fee was framed in populist terms, as if the people were asking for their money back. The federal Troubled Asset Relief Program distributed $700 Billion to financial institutions to share the burden of the financial crisis. The fee is intended to recover the federal monies that the banks are not projected to return.

The Volcker Rule proposed by President Barack Obama, The White House
Background:

In a Press Conference on January 21, 2010, President Obama proposed an amendment to the financial overhaul package that has passed the House and is currently under review in the Senate. He drew on the advice of Paul Volcker, the former Chairman of the Federal Reserve, who has proposed that Congress re-separate commercial banking and investment banking.

Import Certificate Program proposed by Warren Buffett, Berkshire Hathaway
Background:

In 2003, Warren Buffett proposed an import certificate program to eliminate the US trade deficit. We must reduce the deficit, he argues, so that the US is not forced to sell more of its assets to “foreign holders.” As a result of Buffett’s proposal, Sens. Feingold and Dorgan introduced a Senate bill, and economists have published several studies. Advocates argue that the program would create short-term inflation in order to achieve long-term stabilization and growth.

Wall Street Reform and Consumer Protection Act of 2009 proposed by Rep. Barney Frank, House of Representatives
Background:

The House has passed a sweeping measure to address outstanding gaps in the financial regulatory system. The Bill is a direct response to the financial crisis derived in part from securities bundling and firms ‘too big to fail.’ Chris Dodd (D-CT) is championing the bill in the Senate.

Choice Neighborhoods Initiative proposed by Shaun Donovan, Secretary of Housing and Urban Development
Background:

The Department of Housing and Urban Development (HUD) established the HOPE VI program in the early 1990s in order to provide grants to distressed neighborhoods. The grants were focused on new construction and rehabilitation in order to transform low-income areas with high crime and poor education statistics into mixed income areas. The Choice Neighborhoods Initiative seeks to expand the HOPE VI grant program so that HUD can use the grants for community activities including education programming.

A Modern Glass-Steagall: Addressing 'Too Big to Fail' proposed by Paul Volcker, Former Chairman, U.S. Federal Reserve
Background:

The Volcker proposal calls for aggressive financial regulation that would prevent banks that are "too big to fail" from coming into existence. He calls for a legal division of commercial banks from investment houses, which would lead financial giants like JP Morgan and others to divide into multiple, smaller corporations. The Volcker plan was outlined in testimony to the House Financial Services Committee.

Retirement Security for American Families proposed by President Barack Obama, The White House
Background:

The White House announced four initiatives to encourage individual and family savings.  The initiatives are simple, small steps to make it easier for families to expand their savings in preparation for retirement. The new policies are targeted specifically at the nearly 78 million Americans who do not maintain savings accounts through their employer.  The policies are consistent with behavioral economic theory and the ideas set forth by Cass Sunstein and Richard Thaler in Nudge.  Sunstein is President Obama's "Regulatory Czar."

Flexicurity proposed by Denmark, Prime Minister Poul Nyrup Rasmussen
Background:

Implemented under former Prime Minister Poul Nyrup Rasmussen in 1994 after unemployment reached a 25-year high of 13%.   When Rasmussen left office in 2001, unemployment was below 4%.

A Progressive Vision for the Antitrust Division of the Justice Department proposed by David Balto, the Center for American Progress
Background:

In the midst of economic volatility, there is a distinct risk that firms will find stability in cartels.  Not only will cartels erect new barriers to entry and hamper innovation, but they will also set dangerous precedents for the economic formation post-recovery.  David Balto of the liberal Center for American Progress proposes that the Obama administration focus on antitrust enforcement as an instrument of promoting economic growth.  Antitrust enforcement, he argues, will invite new firms into the marketplace and incentivize further innovation.

The Global Plan for Recovery and Reform proposed by The Group of 20
Background:

After meeting at the G-20 summit in London, the most powerful economies agreed to a sweeping recovery plan that enhanced the role of the IMF and committed governments to more vigorous domestic recovery programs. While these agreements are not commonly taken too seriously, they are important to consider as statements of international financial values.

"Clean Up The Toxic Asset Mess" proposed by Center for American Progress
Background:

In response to the introduction of the federal Public-Private Investment Program, CAP issued a set of suggestions for how to implement the plan effectively.

Making Banking Boring proposed by Paul Krugman, The New York Times
Background:

Paul Krugman, Nobel Laureate and New York Times columnist, has argued consistently against the Obama administration's recovery plans.  They are either not enough or wrong-headed, he has claimed.  In today's column, he presents a thesis for reconfiguring the banking system in order to avoid future collapse.

Public-Private Investment Program proposed by Tim Geithner, Treasury Secretary
Background:

As the economy has descended, the Treasury Dept. has inaugurated a set of measures to re-boot the economy. Toxic assets of mysterious origin and value continue to inhibit financial institutions from recovering. The presence of these “toxic” or “legacy” assets on banks' balance sheets discourages investor confidence and stifles lending.  The Public-Private Investment Program outlines a strategy to use the previously-established Public-Private Investment Funds.  Legacy assets are largely the product of repackaging and securitizing subprime mortgages and other risky loans.  

Economic Recovery Plans proposed by Treasury Department, Congress, Economists
Background:

Upon the economy's 2008 collapse and the ensuing recession, the financial gurus within government have offered a suite of economic policy solutions to inaugurate a recovery.  This brief will survey the policy options for economic recovery as they are offered.

2009 Financial Stability Plan proposed by U.S. Treasury Secretary Timothy Geithner
Background:

The initial responses of the Bush administration to the financial crisis spent allocated hundreds of billions of dollars to the Troubled Asset Relief Program (TARP), but have failed to spur a recovery, the new administration argues.  More and quicker action was needed to complement TARP and harness “toxic assets.”

Treasury Executive Pay Restrictions proposed by U.S. Treasury Department
Background:

In the midst of national economic crisis, the United States Congress passed a bail-out package for financial institutions in 2008.  Worried that the bail-out funds would be used for indulgent executive pay and corporate bonuses, the Treasury – in coordination with the White House – passed a series of restrictions on executive pay for those companies receiving bail-out money.

Policies within this sector:
Financial Crisis Responsibility Fee proposed by President Barack Obama, The White House
The Volcker Rule proposed by President Barack Obama, The White House
Import Certificate Program proposed by Warren Buffett, Berkshire Hathaway
Wall Street Reform and Consumer Protection Act of 2009 proposed by Rep. Barney Frank, House of Representatives
Choice Neighborhoods Initiative proposed by Shaun Donovan, Secretary of Housing and Urban Development
A Modern Glass-Steagall: Addressing 'Too Big to Fail' proposed by Paul Volcker, Former Chairman, U.S. Federal Reserve
Retirement Security for American Families proposed by President Barack Obama, The White House
Flexicurity proposed by Denmark, Prime Minister Poul Nyrup Rasmussen
A Progressive Vision for the Antitrust Division of the Justice Department proposed by David Balto, the Center for American Progress
The Global Plan for Recovery and Reform proposed by The Group of 20
"Clean Up The Toxic Asset Mess" proposed by Center for American Progress
Making Banking Boring proposed by Paul Krugman, The New York Times
Public-Private Investment Program proposed by Tim Geithner, Treasury Secretary
Economic Recovery Plans proposed by Treasury Department, Congress, Economists
2009 Financial Stability Plan proposed by U.S. Treasury Secretary Timothy Geithner
Treasury Executive Pay Restrictions proposed by U.S. Treasury Department