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Boost Economy, Edwards Says

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By AMY LORENTZEN, The Associated Press

Published: December 23, 2007

LISBON, Iowa - Presidential candidate John Edwards on Saturday said the country can't simply wait for the economy to turn around, and he wants Congress to come up with as much as $100 billion to prepare for a potential economic slowdown.

The Democrat and former North Carolina senator suggested an initial investment of $25 billion for job creation and other aid, and asked lawmakers to be prepared to come up with the rest if the economy slides into a recession.

Edwards said the economy is struggling because of the housing crisis and stagnant wages. Housing, energy and health care costs have increased, while the median income for working-age families dropped $2,400 between 2000 and 2006, he said.

"I've been concerned for some time that the economic growth in this country is completely concentrated in the top, with big corporations and the richest Americans, and middle class families are struggling," Edwards said at a news conference after a stop in eastern Iowa "We need to stimulate the part of the economy that helps working families."

He didn't propose how to pay for the plan, saying it's his first policy proposal where he hasn't come up with a detailed plan for funding.

"It's a one-time thing and it's paid for by growing the economy," he said.

Edwards' plan also calls for Congress to update the nation's unemployment system, which he said now leaves workers unprepared for hard times. He called on Congress to help states cover 500,000 additional workers each year, and set aside resources now to keep workers from having to wait for benefits if the unemployment rate rises.

Aid to states also would be boosted under the plan to keep them from having to increase property taxes or cut programs such as Medicaid in order to balance their budgets.

To combat the housing crisis, Edwards wants lawmakers to create a home rescue fund to help families get counseling, loans or other financial aid to avoid foreclosure. He also believes that families facing bankruptcy should be allowed to rewrite terms of their mortgage, and write off debt that exceeds the value of their home.

To keep such a crisis from happening again, Edwards said Congress should pass stronger laws against predatory lending and create a federal regulator to oversee financial services products.

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