Now that there’s no denying that the U.S. economy is badly shaken, the presidential candidates are highlighting their ideas on how to fix things.
Last week I got a call from Sen. Hillary Rodham Clinton’s campaign asking if I wanted to talk to the Democratic candidate one on one about her economic stimulus plan.
Of course I did. In fact, I want to talk to all the leading candidates.
During our conversation, Clinton spoke passionately about finding common-sense solutions that focus on individuals.
“I think we are slipping toward a recession,” she said. Of course, saying it now before it is official allows her to place blame on the Republican administration.
Clinton said that stabilizing the housing industry isn’t the only step necessary to stimulate the economy.
“A lot of people are in over their heads in debt, and it’s not just mortgage debt,” she said. “It’s credit-card debt. It’s consumer debt . . . . It’s college loan debt. It’s medical debt. And what we’ve got to do is provide as much help as possible to give people a chance to work their way out and get their finances in order . . . .”
I like Clinton’s idea to create a “community support fund” of up to $5 billion to assist hard-hit communities and troubled homeowners.
Among other things, the fund would help pay for financial counseling, she said.
Financial counseling can do more for individual households and communities than any tax plan.
Help the individual, you boost the economy.
Clinton and I talked about mandatory financial education courses for high school students.
“When I was in junior high and high school, we all had to take courses that we used to call home economics,” she said. “You were given information about how to manage your home, manage your finances . . . pay for your lifestyle.” Studies show that we are raising a generation that won’t be able to manage their financial lives in adulthood.
Clinton said she favors returning to a time when conventional fixed-rate debt was the norm. She said she was “deeply concerned” about the many practices of credit card companies.
“I think they have really not been given sufficient regulatory pressures to be more conscious of the way they do business,” Clinton said. “There are a lot of tactics that need to be reined in.”
I asked Clinton: Is there such a thing as good debt?
“I was raised by very frugal parents,” she said. “My father did not believe in debt. He never had a credit card. He saved his money.
“He was not going to put us at risk. Ultimately, if you are in debt you basically undermine your ability to chart your own future. You become dependent.”
