Where We Stand: Put America on Track

—Illustration by Elwood Smith

The election of Barack Obama as our 44th president—and of the 111th Congress—begins a new era. Voters were clear. They want to get America back on track and to change the way Washington works. They want the Obama administration and the new Congress to lead, to end partisan gridlock and find solutions to the nation’s problems, including the enormous challenges of health care and financial security.

These are hard times. Many workers have lost their jobs—and their family’s health care. Many homeowners have seen the value of their homes plummet or are facing foreclosure. Savings have dwindled, forcing retirees to go back to work and near-retirees to postpone retirement. Families are struggling to make ends meet.

Earlier this year, Congress enacted a stimulus package with rebate checks to individuals. Then the Treasury was authorized to spend up to $700 billion to help ease the financial crisis. The FDIC temporarily is insuring bank accounts up to $250,000, up from $100,000. And the Federal Reserve has lowered interest rates and aimed to loosen credit markets with infusions of cash.

AARP supported each of these efforts, but more is needed—too many Americans are still hurting. Congress needs to take additional steps to encourage job growth and provide relief to individuals and families. Specifically, we need immediate action in six key areas:

Job assistance—Extend unemployment benefits an additional 16 weeks for those who have already exhausted their eligibility.

Health security—Assist states to provide health care to vulnerable citizens by temporarily increasing Medicaid matching rates.

Retirement security—Temporarily waive the requirement that Americans age 70½ and older take minimum distributions from their IRA and 401(k) plans, and make the withdrawal of funds optional. Provide additional relief for retirees who need the money or have already taken it out, to help those withdrawing funds from significantly depleted retirement accounts.

Homeowner assistance—Permit bankruptcy judges to adjust primary mortgage debt as they already can for second homes and investment properties. Provide homeowners facing foreclosure with a nine-month “time out” for negotiating a new loan. Obligate banks receiving Treasury assistance to try to modify loans before foreclosing on struggling homeowners. Adjust the tax code so homeowners can more easily restructure mortgages.

Energy assistance—Increase funding to help low-income families pay for heat this winter.

Nutrition assistance—Provide more help for those most in need.

Yes, these measures will add to the deficit, and even more investment may be needed in coming months. But we must solve this crisis by creating new jobs and stimulating economic growth, as FDR did during the Depression.

President-elect Obama has called upon Americans to do our part to move the country forward. Be assured that AARP will accept this challenge, on behalf of our members and future generations. Times are tough, but we have an extraordinary opportunity to change our country for the better.