Faxless payday loan companies serve consumers who the banking system abandoned. For various reasons, offering small loans for credit-challenged people is not what banks wanted to do in the early 1990s when payday loans first began their rise. It is no coincidence that banks left the inner cities; lending risk was greater. However, no fax payday loans are the bridge the middle class needs, particularly when financial times are as difficult as they are today.

36 percent APR payday loans increase unemployment

According to barackobama.com,  President Obama and Vice President Biden will cap payday loans at 36 percent annually. Do the math and you’ll see that this is ridiculous. That means that a two-week cash advance of $300 brings a profit of only $4.14 to the lender. That’s a quick route to going out of business and creating even mass unemployment. Obama also promises to make payday lenders accountable and force them to disclose all terms, but anyone who knows anything about payday loans knows it isn’t hard to throw a rock and hit a lender who already has these concepts well in hand and is serving the public well.

Obama’s “crackdown” could also mean outsourcing

This is exactly what the president doesn’t want, but he could force businesses who have no interest in outsourcing to consider that route. According to Lacheen, First Cash Financial Services has already moved into Mexico. This actually makes sense on another level, too, as the Mexican population is also largely under-banked. Lobbying lawmakers in America helps, but it isn’t always successful. And don’t think for one minute that lobbying is back-room shadiness. It’s a necessary part of America’s political system.

Lacheen calls the threat of anti-payday loan legislation from President Obama’s swift left-handed pen the “Obama Risk.” I call it a bad idea for America.

The party is over, Mr. President. The challenges you’ve vowed to tackle with the nation’s economy await, and your payday loan source – as well as the rest of the nation – want to know what you have in store. This third article in a series of five will review your plans for improving America’s infrastructure, technology and small businesses. If you missed the previous articles, here are parts one and two.

Transportation situation

Highways, bridges, roads, ports, air and train systems; it’s how we get there. With projects that improve our transportation infrastructure, jobs will be created, we will be safer and commerce won’t slow down. Hence, America will remain a major competitor on the world stage.

President Obama aims to start a National Infrastructure Reinvestment Bank.The Bank will receive $60 billion in federal money over 10 years, which will go above and beyond previous infrastructure funding. This money will go toward transportation infrastructure projects nationwide. Experts estimate that these projects will create two million jobs and pave the way for about $35 billion additional per year in increased commerce.

We will have the technology

Corporate and academic America depend upon the research and technology that moves us closer to new horizons and economic advancement. The way in which qualified applicants can quickly apply for and receive a payday loan over broadband lines is but one example of how technology makes lives easier. Here are some of the major areas President Obama will address as he strives to support technological advancement in America:

• The United States Government must embrace science if they are serious about making America an innovator once more. This includes financial and philosophical support for invention, competitive technologies and associated job growth
• The Research and Development Tax Credit will be made permanent. By investing in a skilled research and development workforce, President Obama will instill confidence in American firms about investing in research and development domestically
• America’s broadband backbone will be extended to rural and previously unserved or underserved areas. President Obama is firmly behind this agenda, as America has fallen behind a number of countries in terms of broadband connectivity. Maintaining America’s image as a world power and bring information and technological innovation to areas of the country that need assistance are central to Obama’s plan. The Universal Service Fund will play an important role in funding this change

Small business is the backbone of the economy

Despite the stranglehold giants like Wal-Mart appear to have on America’s retail economy, they are not the barometer for our success. Small businesses in all fields carry the hopes and dreams of countless people; the entrepreneurial spirit is vital to American innovation. With it we thrive, without it we stagnate and the economy falters. President Obama recognizes this, which is why the following funding plans are on the agenda:

• Tax Relief, in the form of eliminating capital gains taxes on start-ups and other small businesses, should encourage business (and hence job) creation. A $500 “Making Work Pay” credit would go to most workers and the self-employed will no longer have to pay both employee and employer sides of the payroll tax
• President Obama will create special organizations that support entrepreneurs and start-ups by investing $250 million per year in disadvantaged areas that could benefit from the energy and support of small business success

Success is President Obama’s goal, nothing less

By investing in the improvement of America’s transportation system, technology and small businesses, President Obama will bring the country that much closer to their destination of financial reform. It will be a long, slow road, but the President appears to have the right ideas for lasting change. Your payday loan source remains hopeful. Financial success brings growth and greater freedom for the population. Whether you need a job, a tax break, a better way to get where you need to go or payday loans during times when the paycheck won’t cover an emergency, the direction of America’s economy appears to be headed toward greater freedom of choice. For more on Obama’s economic policy (regarding labor, homeownership and credit card practices), click HERE.

North American Free Trade Agreement

This is part two of your payday loans source’s close-up view of President Obama’s domestic economic policy. Part one is available here. Let’s look at what Mr. Obama plans to do to promote trade and improve manufacturing.

Trade that benefits America

Increased trade with foreign countries will help the American economy and create jobs, which is essential during the country’s current recession. President Obama will accomplish this in a variety of ways, which will include the following:

• A “Fair Trade” policy that will spread good labor and environmental standards around the world and stand against previous policies that are insufficient. Trade agreements, unfair subsidies and nontariff barriers on U.S. exports will also fall under Obama’s scrutiny
• Amend NAFTA: Obama and Biden will work with Canada and Mexico to ensure that the North American Free Trade Agreement is amended to make up for the chasms that threatened to swallow American workers
• In the changing economy, workers must have the education to properly adjust. Thus, Obama will update the Trade Adjustment Assistance to help previously overlooked workers who are currently in danger of losing their jobs
• Job outsourcers will pay. President Obama will work to curtail tax breaks for companies that offshore their jobs. Moreover, a preference will be shown to America-based companies when public contracts are awarded
• Mr. Obama endorses the Patriot Employer Act of 2007, which rewards those companies that create jobs with good benefits for Americans. He will continue to pursue such gains for American workers in the areas of pay and benefits

Manufacturing and “green” jobs

President Obama understands the value of modernizing American manufacturing jobs to meet the challenges of the current world economy. In the process, he will also have the opportunity to help the environment by funding and encouraging the growth of manufacturing that produces less waste, or at least waste that is less harmful. To use a payday loans analogy, old manufacturing is depending upon expensive, wasteful checking overdraft, while green manufacturing is swift and efficient, like no fax payday loans. Here are just a few of the initiatives the 44th President of the United States of America plans to bring to fruition:

• Obama wishes to create an Advanced Manufacturing Fund that through research and peer review will identify top opportunities for expanding America’s economic sector
• The Manufacturing Extension Partnership (MEP) will receive twice the funding it received before. In the past, this program helped create more than 50,000 jobs. By increasing funding, these numbers should increase exponentially
• Five million new green jobs was an important part of Obama’s campaign. His plan to invest $150 billion over 10 years in biofuels and fuel infrastructure will not only increase fuel efficiency and aid the environment, but will provide a tremendous boost to the economy. Funding programs that are green-oriented will be necessary to educate the workforce to fill the necessary positions
• Mr. Obama is behind a Renewable Portfolio Standard (RPS) that will require 25 percent of American electricity be derived from renewable (non-coal) sources by 2025. Not only will this create jobs, but it will open up the potential for encouraging tax credits like the Production Tax Credit

If President Obama is able to accomplish his goals for America in terms of trade and manufacturing, the boost to the American job market should be tremendous. More jobs equals greater economic freedom. Freedom to choose how your money will be spent (as well as how it will be borrowed, when you want payday loans) is essential to the rights of the American consumer. Read on to Part 3 of this article and see how President Obama will address the economy through aids to the country’s infrastructure, technology and small businesses.

$825 billion economic stimulus package

House Democrats today summarized the much-awaited economic recovery plan, and the total bill now is set at $825 billion. The plan includes $550 billion for spending and state aid. The other $275 billion will come from tax cuts.

House Speaker Nancy Pelosi says the bill will  be complete by mid-February. House committees will now review the bill and then it will go to the Senate.

Energy and infrastructure

The package, called the American Recovery and Reinvestment Plan, says $54 billion will be spent on producing alternative energy. Obama wants production of alternative energy in the U.S. to double. Tomorrow Obama will talk about the details at a wind turbine factory in Ohio.

As promised, the bill includes provisions for infrastructure and education. In this plan, $90 billion would go to repairing, modernizing and building roads, bridges, mass transit and waterways. More than $140 billion is allocated for state aid, and most of it would go to education.

Getting the job done

The plan also calls for saving or creating 3 to 4 million jobs. Some estimates say this will be done by 2010, but economists and other members of Obama’s team say it will take two years.

The recovery package also gives aid to those without jobs. $9 billion will go to increasing the amount of unemployment checks. $27 billion would go to extending unemployment benefits. $30.3 billion would subsidize health care for a year for workers who had health coverage through their employers and lost their jobs.

Tax time

Obama’s original plan called for a $3,000-per-hire tax credit for businesses, but the summary released today does not include that provision. It does, however, include what Obama calls the “Make Work Pay” credit, which will provide Americans an extra $500 through decreased paycheck withholding.

Businesses are still up for a tax cut, called the “net operating loss carryback,” but that might not make it onto the final bill. The amount dedicated to this tax cut is unclear. The bill also expands the earned income tax credit.

Republicans respond

The Republican Study committee put forth an alternative bill. Their bill allocates more for business tax cuts. House Minority Leader John Boehner has said that the Democrats’ bill contains questionable spending and doesn’t contain enough tax cuts.

Obama has said that he will look at any and all ideas for stimulus from both parties. With the small amount that would make its way back into individuals’ paychecks, though, many Americans will still be left needing a payday loan in the case of unexpected expenses.

The great debate

There is much talk in Congress as well as households across America as to whether tax cuts or government spending is the best way to stimulate the economy. Economists and politicians agree that there is an urgent need for government intervention to ease the economic  crisis, but Democrats and Republicans are sticking to their respective ideals when in comes to what form that intervention should take.

Democrats are pushing to fund government programs that will create jobs. Republicans believe that the money should go to individuals through decreased taxes.

My two cents

There are problems with both theories. Even if the full amount proposed goes to job creation, it will not bring unemployment back down to normal levels, it will simply decrease it. And tax cuts are a risky bet because after all of the financial hardship American families have been through they are saving more, and will likely continue to do so with any extra money they have.

Share your thoughts on which approach you think will get America’s economy back on track.

This article was provided by your payday loan source.

Obama faces opposition from Senate Democrats

President-elect Barack Obama unveiled his massive economic stimulus plan yesterday, and most of the resistance to the package seems to be coming from inside the Democratic party. In a closed-door meeting with Obama aides David Axelrod and Lawrence Summers, democratic leaders expressed reservations about proposed tax cuts for businesses and individuals.

Quite frankly, because of the economy, if someone gives you a tax break you’re probably saving that money. You are going to salt that away, you are not going to spend it,” said Senate Agriculture Chairman Tom Harkin.

Iowa Senator Tom Harkin

Harkin spoke to reporters after the meeting, and he said he thought the plan relied too much on the “trickle down” theory, reports the National Journal.

Party priorities

Democratic leaders are saying more emphasis needs to be placed on other parts of the plans, specifically investing in energy and infrastructure. Obama’s proposal includes plans to create jobs in developing alternative energy and repairing the nation’s roads and bridges.

Harkin said many people at the meeting expressed the sentiment that the most important step toward fixing the economy is creating jobs. Budget Chairman Kent Conrad said energy is “way underrepresented” in the plan.

Stimulus check vs. tax break

The plan would give individual Americans $500 over a period of months through decreased tax withholding. For some, this could make the difference in whether they need a payday loan. Tax cuts would also be given to businesses who hire new workers. After the Bush administration sent out stimulus checks last year, it had no noticeable effect on the economy. So many Democrats believe a tax break would be ineffective as well.

However, Majority Whip Richard Durbin disagreed. He believes that Americans save the  money from their stimulus checks “because it’s the only thing coming.” He argues that if a small but steady stream of extra cash were predictable, people would consider making purchases they otherwise would not.

More voices chime in

Economists are calling on Congress to act quickly to pass the American Recovery and Reinvestment Plan, but they are split on support for the tax cuts. Some support the breaks and believe they will stimulate the economy, but others are skeptical that it will encourage more spending.

The U.S. Chamber of Commerce responded positively to the plan. Chamber President and CEO Tom Donohue expressed a rare sentiment when he called the package a relatively “cheap investment.” The price tag for the plan is estimated at $800 billion.

Editing process

Summers, Obama’s economic council director, was noncommittal about what changes would be made to the plan. Leaders involved in passing the huge initiative expect to see a lot of back-and-forth before an agreement is reached.

Republicans yesterday expressed general agreement with the plan. Some are encouraging that the proposed grant to supplement state revenue should instead be loans.

Check back with your payday loan source for more updates on the progress of Obama’s proposed stimulus plan.