Obama: Times too serious for petty attacks

Responding to what is now a global financial crisis, Barack Obama today called for pragmatism not partisanship, offered some more detail on a plan to help small businesses, and tweaked his critique of Republican rival John McCain.

"This is not a time for ideology – it’s a time for common sense and a politics of pragmatism," he said this morning as he continues an economics-based tour of Ohio, a key battleground on Nov. 4. "The test of an idea must not be whether it is liberal or conservative – the test should be whether it works for the American people. That’s what we should all be focused on in the days and weeks ahead."

Obama quoted Franklin Roosevelt's admonition during the Great Depression, declaring, "Now is not the time for fear. Now is not the time for panic. Now is the time for resolve and steady leadership."

But McCain, he said, is not focused on the economy, but instead is sowing division in the country with personal attacks and nasty insinuations.

"They can run misleading ads, they can pursue the politics of anything goes. It’s not going to work, not this time," Obama said.

"I think that folks are looking for something different. It’s easy to rile up a crowd by stoking anger and division. But that’s not what we need right now in the United States," Obama added. "The times are too serious. The challenges are too great.... Now, more than ever, it is time to put country ahead of politics. Now, more than ever, it is time to bring change to Washington so that it works for the people of this country that we love. I know my opponent is worried about his campaign. But that’s not what I’m worried about. I’m thinking about the Americans losing their jobs, and homes, and their life savings."

UPDATE: Tucker Bounds, a McCain spokesman, responded in a statement: “Instead of acknowledging the real differences that exist in this election, Barack Obama is using America's economic crisis to deflect legitimate criticisms of himself and his record. Now, more than ever, Americans should be scrutinizing Barack Obama’s role in shielding Fannie Mae and Freddie Mac from increased regulation. Voters deserve a real debate about Barack Obama’s proposals for one trillion dollars in new government spending and tax increases on small businesses – when Americans can afford neither. At a time when hardworking families face uncertainty and a historic decision in November, they expect more than Barack Obama’s self-interested calls to stifle any inquiry into his record or his past.”

For small businesses, Obama proposed a nationwide program to provide affordable, fixed-rate loans and an additional temporary business tax incentive to encourage new investment.

"If we’re going to rebuild this economy from the bottom up, it has to start with our small businesses on Main Street ... not just the big banks on Wall Street. Small businesses employ half of workers in the private sector in this country, and they account for the majority of the job growth. But we know that with a credit crunch that has dried up capital, that puts more pressure on small businesses and put their jobs at risk. ....If we don’t act, we’ll be looking at scaled-back operations, shuttered shops, laid-off workers. That hurts everybody."

This afternoon, Obama's campaign issued more detail on the small-business proposal:

While the financial market rescue plan is designed to unfreeze credit which will indirectly benefit small businesses, Obama recognizes that small businesses need direct and immediate access to capital now. Today he is calling for a Small Business Rescue Plan to help small firms get the loans the need to conduct day-to-day operating expenses, undertake short-term investments, and meet payrolls. The plan will use the tools we have available through the Small Business Administration to aggressively extend credit to struggling firms, while providing tax cuts for small businesses to encourage job creation. With small businesses responsible for more than two-thirds of new job creation, this plan is vital to stemming job losses and turning our economy around. Obama’s small business plan includes:

A Nationwide Emergency Lending Facility for Small Businesses: Just as we did in the wake of 9/11, when businesses all around the country were facing economic injury, Barack Obama is calling for the Small Business Administration to directly lend to small businesses that cannot access other sources of capital. The facility will be run through the Small Business Administration’s (SBA) Disaster Loan Program, which is designed to offer affordable, fixed- rate loans to small firms to meet operating expenses, undertake needed short-term investments, or to refinance debt. Loans should be available with an expedited approval and disbursement process, so that firms can access the credit needed to meet their operating expenses immediately.

Expanding Small Business Administration Guarantees to Encourage Private Lending to Small Businesses: Obama is calling for expanding the SBA’s key loan guarantee programs – 7(a) and 504 – by temporarily eliminating fees for borrowers and lenders and increasing the guarantee rate on private loans. These steps will give lenders new incentives to lend and help unlock credit for small firms. It will send a clear signal that the government is standing with small businesses and ensuring sources of loans.

Temporary tax incentives to encourage small businesses to invest in jobs. Obama will give small businesses additional incentive to make investments and start creating jobs again by providing temporary business tax incentives through 2009. The February 2008 stimulus bill increased maximum section 179 expenses to $250,000 but this expires in December 2008. This provision will encourage all firms to pursue investment in the coming months, but will benefit small firms in particular, who generally have smaller amounts of annual property purchases and so choose to expense the cost of their acquired property.