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From the One America Committe (www.oneamericacommittee.com):
"Restoring the American Dream -- Combating Poverty and Building One America"
Fact Sheet September 19, 2005
"Working Society"
The aftermath of Hurricane Katrina has shown each of us the harsh realities of the Two Americas - one for the privileged and wealthy and one for the families living paycheck to paycheck - that exist in our country today.
President Bush says he wants America to be an "Ownership Society." Under his Administration's policies, this means the more you own, the more you get. For Americans struggling to make ends meet, it means the more you work, the more you pay.
It is time for a new social compact. The "Working Society" means people who are willing to work hard and take responsibility for themselves, should finally have the rewards to show for it. It is based on the principle that in America no one succeeds on their own, and no American should be out there on their own. It strengthens our national community by making the pact that if you are willing to hold up your end of the bargain, the Working Society will make sure you are able to get ahead, not just get by.
Today, Edwards called on his fellow citizens to recommit themselves to a Working Society - where if you work full time, you will have something to show for it - savings, your own home, the chance to live in a good neighborhood in good schools, and the ability to afford college.
"Work Bonds" to Help Families Save. Edwards described a new proposal to help all Americans save, invest, and get ahead. His "work bonds" would expand the Earned Income Tax Credit to help low-income, working Americans save for the future. They would receive an extra tax credit that matched their wages, up to $500 per year. The credit would be directly deposited into a savings account or safe investment fund of stocks and bonds, available for retirement, small business, education, and personal emergencies. Families could add their own savings to the account. Edwards' proposal would also expand the Savers Credit to match the savings of low-income families.
"A New Savings Plan" to Help Families Buy and Keep a Home. Homeownership promotes economic security and, for most families, is the top generator of wealth. However, predatory lenders use deceptive terms and abusive interest rates and fees to strip away families' equity, reducing the amount of wealth they have saved in their homes and sometimes depriving them of their homes entirely. Just last week, the Federal Reserve released data indicating that blacks are about three times more likely than whites to borrow through more expensive "subprime," regardless of income levels. Edwards called for a crackdown on predatory lenders and proposed a new deal to poor families entering the workforce: for the first five years they work, his plan would set aside up to $1,000 for future home payments. After five years, American workers will have up to $5,000 for toward their first home.
Home-to-School Vouchers for the Working Poor. Edwards outlined a major effort to give poor working parents housing vouchers so they have a chance to move into neighborhoods with better schools, expanding opportunity and building healthier communities. This initiative would utilize the existing section 8 housing voucher program as a base, include housing market and school counseling, and build on lessons from successful initiatives like Moving to Opportunity and HOPE VI.
Make Work Pay. America was built on the idea that anyone can work hard and build a better future for themselves and their children. The minimum wage is currently 33 percent of the average hourly wage of American workers, the lowest share since 1949. Edwards proposed raising it to at least $7.50 an hour. He also called for strengthening labor laws to give workers a real opportunity to organize and ensuring Americans can enter the workforce and change jobs without losing their health insurance.
College for Everyone. Today, 200,000 young people don't go to college each year because they can't afford it. Others don't even apply because they think they find the process overwhelming. As in the past, Edwards proposed a College for Everyone initiative that would offer a new deal to young people: finish high school and stay out of trouble, agree to work or do community service in your first year of college, and you will pay no tuition and fees for your first year at a public university or community college. Edwards would pay for much of this initiative by eliminating subsidies to banks for student loans and making those loans directly to students instead.
Strengthen Families and Finish Welfare Reform. Edwards proposed a series of measures to strengthen families. First, he would expand the Earned Income Tax Credit to address the up to $3,000 marriage penalty that hits poor families. Second, to bring more men into the workforce, he would offer supports to such poor single workers through the Earned Income Tax Credit or another mechanism. He would also finish the work of welfare reform. Welfare reform required mothers to work and helps them find jobs, but it left poor fathers right where they were. Edwards would use the full force of the law to ensure that fathers to work and pay child support, give them help finding work, and make sure child support goes to help children and is not pocketed by the government. Edwards also emphasized the need to fight teen pregnancy, noting that young people should not have children they are not ready to care for, and calling for more support for struggling young people and investments in proven initiatives that lower teen pregnancy rates by engaging young people in community service, offering them greater educational opportunity, and pointing the way to a strong economic future. -------------------------------------------------------------------------------- The "New America Initiative" to Renew the Gulf
Rebuilding the Gulf will be the first test of whether we as a nation will rise to the challenge of fighting poverty as the whole world watches. The New America Initiative is based on the principle that renewing the lives of the people of the Gulf requires more than food and shelter; it requires the dignity that comes from a job at a decent wage.
Make High-Skill, High Wage Jobs a Priority. Rebuilding the Gulf has the potential to bring many good jobs to the region. Federal policies should make job creation a top priority. It should require payment of a decent wage: The Administration's suspension of the prevailing wage law to ensure workers are paid a fair's day wages for a fair day's work should be reversed. Building new skills must also be part of the effort. Tax breaks for businesses alone will never attract high-wage, high-skill jobs. We need a different approach that unites businesses, community colleges, nonprofits, and unions in new cooperation. Cooperation among all these sectors has successfully generated jobs from Wisconsin to Nevada, and should be fostered to create jobs in the Gulf.
Help People Build Assets. As many economists note, "Income helps you get along. Assets help get you ahead." In the 21st century economy, it isn't enough to earn a decent wage, you need to build assets. Katrina did not discriminate based on economic standing, but families living paycheck to paycheck were hit the hardest. There was no breathing room in their budget that allowed them to save for a house, college, or just sock away so savings for a very rainy day. We need to give Gulf residents a chance to save by helping them open a bank account, putting relief into those accounts, and cracking down on the predatory lenders who can take advantage of them.
Create a "Built to Last" Infrastructure for the 21st Century. We need a Gulf Coast that is "built to last," with infrastructure to compete in the 21st century. For our new economy, it means modern mass transit, like light-rail, that will help connect people to jobs; energy-efficient businesses and homes that can reduce demand for foreign oil and build a market for efficiency here at home; bringing broadband to the region so it can connect to the web as well as New Delhi. Urban homesteading is a start idea, but we should bring together the great private engines of development - banks, homebuilders, government-sponsored enterprises, and others - challenge them to build integrated communities, and leverage federal dollars to do it, including tax credits proposed but never enacted. It will be impossible to rebuild the Gulf without a common effort by these engines of growth.
Build Housing that Will Bring New Opportunities, not Pockets of Poverty. The Administration's main vehicle for housing the displaced is building trailer parks townships that threaten to become new pockets of poverty that undermine economic opportunity . We should give the displaced more choice and more opportunity by providing them with Section 8 housing vouchers that would allow them to move into existing housing, often in middle-income neighborhoods near good jobs. Our rebuilding efforts should focus on building communities with more opportunity built on economic integration. Offering section 8 vouchers proved successful in quickly providing housing in diverse neighborhoods after the 1994 Northridge earthquake; it should be a key strategy now.
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