THE PENDULUM
NEWS
WEDNESDAY. FEBRUARY 10. 2010 // PAGE 7
Obama’s budget tackles 9.7
percent unemployment rate
Eliot Sasaki
Senior Reporter
President Obama unveiled a $3.8
trillion spending plan for 2011 on
Monday, heightening the effort to
reduce unemployment and endorsing
new job-creation efforts. If approved
by Congress, the deficit would be
raised to a record-breaking $1.56
trillion.
The budget forecasts an additional
$266 billion to boost the economy and
extend relief to states and unemployed
workers, according to the Washington
Post. These efforts allude to Obama’s
domestic agenda in education,
renewable energy, health care and
other areas. The aim of this agenda is
long-term growth — a by product of
job creation.
Students grappling with the reality
of finding a job after graduation
marks a common theme at Elon.
“It’s still going to be awhile
until unemployment comes down,”
professor of economics Steve DeLoach
said. “Getting out of the recession is
the first stage.”
The national unemployment rate
currently stands at 9.7 percent. In
addition, about 7 percent of the
population works part time.
Despite these startling figures,
DeLoach said he expects jobs to
slowly start returning. By 2012,
unemployment could dip into the 8
percent range.
“More (students) will graduate with
debt, which you will have to pay off
once you get a job,” DeLoach said. “It
will cut into people’s lifestyle: once
you graduate from college you might
not buy a car right away.”
Normally it would be feasible for
well-off students to purchase a car,
but, at least for now it may not be, it’s
not.
“Under Obama’s proposal, Bush-
era tax cuts would be allowed to
expire for individuals making more
than $200,000 per year and for
married couples who earn more than
$250,000,” according to the U.S. News
& World Report. The president also
proposed increasing the capital gains
tax rate from 15 percent to 20 percent
for Americans falling in those wealth
brackets.
But the belt-tightening that the rich
might feel doesn’t necessarily translate
to other socio-economic classes.
“Bringing down the deficit is
generally good for middle- and
lower-class people,” DeLoach said. “If
Democrats had their way, they would
do something similar to the Clinton
administration in the early 1990s.”
The “pay-go" regime appeared in the
1990’s under Clinton and resurfaced
InfornutiOA fton ttw Ui. Nat»A«l Dtbt Ctodt
with Obama. Bush’s presidency
scrapped pay-as-you-go, and a $127
billion surplus in 2001 turned into
deficits over the next four years of $159
billion, $377 billion, $413 billion and
$319 billion respectively, according to
The Huffington Post.
The pay-as-you-go rule is simple;
Congress can only spend a dollar if it
saves a dollar elsewhere.
Obama’s $3.8 trillion budget for
2011 includes his proposals to overhaul
the health care system and energy
policies, though they are crumbling
SARAH COSTCU.O I Graphics Editor
in Congress, an NYTimes.com article
said.
“The president will ask the
commission to recommend by
December a plan to balance the budget
by the 2015 fiscal year, not counting
interest payments on the national
debt," the article said.
Elon seniors last year cringed to
the tune of the job market. This year’s
seniors will be doing much of the
same. Underclassmen are essentially
in the same boat — but unemployment
rates are expected to improve.
Coble refuses pension, gains positive reputation
Caitlin O’Donnell
Assistant News Editor
Through the years, politicians have
gained a reputation for being deceitful,
corrupt and greedy. But in one small
way. Congressman Howard Coble,
R-N.C., is trying to change that.
For the 25 years Coble has
represented the sixth district of North
Carolina, he has refused to accept his
Congressional pension.
“1 have historically opposed pay
increases and excessive benefits for
members of Congress. I fight hard to
ensure tax dollars are spent wisely,”
Coble said on his Web site.
Coble first got the idea in 1983
while serving in the North Carolina
general assembly. At the time, he was
considering running for Congress.
“At a reception, 1 was approached
by a fellow who asked if I was familiar
with Congressional pension,” Coble
said. “He said it was a taxpayer rip-off,
too generous and 1 should not accept
it.”
Though members do contribute
to the pension funds, the program is
subsidized heavily by tax payers.
“I get a pretty good salary and I
made up my mind that if 1 was ever
elected, I would forego the pension,”
Coble said.
After five years, the pension
becomes vested at $ 12,000-14,000
thousand dollars per year for the
remainder of the members’ time in
Congress.
According to a CBS Evening News
Report by Sharyl Attkisson, only 18
percent of private workers receive a
traditional pension, down from 80
percent in 1985. Today, more than
400 retired Congress members are
guaranteed a pension. The 2009 bill for
the program exceeds $25 million, not
to mention the $7.4 million taxpayers
contribute to current members’ future
pensions.
“Of course, the longer you are there,
the bigger the pension,” Coble said. “If
I were to leave Congress today, I would
have a pension of $65,000-68,000 a
year.”
Coble admits that refusing the
money was not his wisest financial
decision. Usually, when members leave
Congress, they are able to convert their
health care program and continue
receiving medical coverage. As a result
of Coble’s decision, he will be unable
to do this when he leaves Congress.
“If I had known that, I probably
would have just taken the pension
and given it to charity,” he said. “Even
though I have had two chances to get
back into the program, I have refused
both.”
During his first few years in
Congress, Coble routinely introduced
bills which would eliminate the
Congressional pension altogether.
“This obviously went nowhere
and didn’t make me very popular on
Capitol Hill,” Coble said.
In 2007, a bill was passed which
corrected one of the primary
complaints made against the
program.
According to Attkisson’s report,
the legislation prevents future
congressional felons from collecting
pensions. William Jefferson, D-La, who
was convicted of bribery in 2005, will
still have a hefty paycheck waiting
upon their release from prison.
Constitutionally, the bill cannot affect
crimes already committed.
At this point, members are left to
make individual decisions regarding
their pensions. Though only one other
Congressman, Ron Paul, R-Texas, has
followed Coble’s lead, the program is
getting increased attention from the
public.
“People have told me that it is the
only reason they continue to vote
for me,” Coble said. “And recently on
his broadcast. Governor Huckabee
encouraged all members of Congress
to refuse their pension.”
Elon resident Ron Sockwell said he
believes refusing the pension is not
enough and agrees with Coble’s idea to
donate the money to charity.
“When Representative Coble refuses
his pension, it’s not likely that any of
the money will find its way back into the
community through other government
programs and there will be zero impact
or benefit in Elon or North Carolina,”
Sockwell said. “I believe that he should
accept the money and donate it to local
charities, ensuring it gets returned to
the community.”
Though Coble said he believes
the program is philosophically
too generous, he understands it is
fundamentally a good idea, which
is why nothing has been done to
dismantle it.
“Though it is getting more attention
from the press, 1 do not foresee many
jumping on the bandwagon in the
future,” he said.
Coble is currently planning to run
for his 14th term in Congress.
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