’08 Candidates Respond to Economic Jitters

January 22, 2008— -- When the presidential race got underway, it was widely expected that the Iraq war would dominate the dialogue. But talk of the war has receded and the economy has moved to the forefront.

The new emphasis on economic issues was acutely on display Tuesday amid fears of a U.S. recession and a worldwide stock sell-off.

Speaking on a conference call with reporters, former Sen. John Edwards, D-N.C., said for the first time that he thinks the United States is in a recession. "Our country is no longer on the brink of a recession," said Edwards. "I think we're in one." Sen. Hillary Clinton, D-N.Y., warned that a deteriorating "global economic crisis" could spark a "long recession."

The former first lady called for President Bush to pass a stimulus package including new spending, mortgage relief, and tax rebates that go to everyone, including those who do not make enough to pay income taxes. During her press conference in Washington, D.C., she also called on Bush to convene the President's Working Group on Financial Markets.

Speaking at Furman University in Greenville, S.C., Sen. Barack Obama, D-Ill., accused President Bush of waiting too long to offer an economic stimulus package. He also criticized the president for neglecting the "50 million workers and seniors who need our help the most."

The Illinois Democrat also tried to make hay out of the fact that he called for a tax rebate before his top Democratic rival.

"Senator Clinton first released her economic stimulus plan, she didn't think that workers or seniors needed immediate tax relief," said Obama. "She thought it could wait until things got worse. Five days later, the economy didn't really change, but the politics apparently did," Obama concluded, "because she changed her plan to look just like mine."

Economic jitters also reverberated in the Republican race

Speaking in Boca Raton, Fla., Mitt Romney warned of a "solvency crisis.""Credit crisis is so 2007," said Romney. "2008 is a solvency crisis. . . And that's obviously a very fearful perspective and hopefully one that does not rear its ugly head in reality but people are talking about major institutions having difficulty maintaining their level of capital and the commitments that they have and so that creates a certain degree of concern."