Obama’s Economic Plan, Part 5 | From Your Payday Loan Source

Obama to reform bankruptcy and family leave

The American economy is poised on the point of major collapse. Immediate action must be taken to change the current course, or the country’s current recession will spiral down into a major depression as it did 80 years ago.  Your payday loan source is hopeful that President Obama’s economic policies will right the ship.

This article, the concluding in a five-part series, covers Mr. Obama’s views on reforming bankruptcy laws and striking a needed balance between work and family life. For previous segments of this story, please see parts one, two, three and four.

Bankruptcy for the working class

Essentially, President Obama’s goal is to make the process of filing for bankruptcy easier for military families and victims of natural or medical disasters. If the person can prove they filed for medical reasons, Obama’s exemption would go into effect; they would be forgiven and have the chance to get back on their feet. Moreover, Obama wants to assist those filing for bankruptcy from having to lose their homes.

Mr. Obama’s bankruptcy policy does have a misstep in it regarding rate caps for payday loans at 36 percent annually. Of course your payday loan source admits some bias in the matter, but there are numerous independent parties that corroborate that capping no fax payday loan interest rates harms consumers, and that bankruptcy is not in fact caused by faxless payday loans themselves. His call for clear disclosure of lending terms is reasonable. His request that banks and credit unions offer short-term loan products to consumers sounds reasonable, but these institutions won’t do it. Why? Because forcing or tricking consumers into depending upon checking overdraft protection is much more lucrative for them.

Family matters most

Barack Obama is a family man himself, so he understands how easy it could be to lose track of what’s most important when working life’s demands weigh heavily. Through expanded programs, benefits and tax cuts, the President will strive to restore the kind of balance that leads to happier families – happier consumers – whose faith in saving and spending will be renewed by the increased quality time available. Here are some highlights:

• Obama plans to expand the Family and Medical Leave Act so that it will cover more people in more situations, including allowing for elderly care, participation in child academic functions and addressing situations where domestic violence is involved
• A $1.5 billion fund will assist states with paid leave and related programs
• Funding will be doubled for after school programs through organizations like the 21st Century Learning Centers program
• The Child and Dependent Care Tax Credit will become refundable and allow low-income families to receive up to a 50 percent credit for care expenses
• The Equal Employment Opportunity Commission will be enforced so that workers with family care obligations will not be discriminated against
• Businesses will be encouraged to create more flexible work opportunities for those with family obligations; federal incentives for telecommuting will also be given. In order to model these ideals, President Obama vows that the government will utilize the same practices

Mr. President, start the healing now

The American economy has been riding along for some time with a driver that’s asleep at the wheel. President Obama doesn’t accept more of the same, so let’s see how his policies will work. The fixes are certainly not as easy as getting a payday loan, but like the popular short-term loan product, the principles must be sound.