Charlie Wheelan for Congress – Swing State Project

If You Are Shopping for a Candidate, Ask Yourself These Questions

charlie

1. What is the most important issue in this race, and who is most qualified to deal with it? I believe it’s the economy, and that I’m uniquely qualified to deal with economic issues. I teach public policy at the University of Chicago and wrote a book called Naked Economics: Undressing the Dismal Science that has been published in 10 languages. I’ve spent my entire adult life working on issues like education, health care, tax policy, and transportation.

2. Why do we end up with so many corrupt politicians? Because we keep electing the same kind of people. Whenever we have a political opening – like this Congressional seat – we always go looking for a replacement in the same places, as if there is some kind of political farm league. But that means we usually end up with career politicians who have a powerful incentive to protect their careers.

If you want a different outcome, elect a different kind of candidate. As I always say on the stump, “Chicago produced both Rod Blagojevich and Barack Obama-but only one of them taught at the University of Chicago. So stick with that model!”

3. Can one representative really make a difference? Yes. In fact, the U.S. has a long history of academics who have become highly effective politicians (on both sides of the aisle): Paul Douglas; Daniel Patrick Moynihan; Paul Wellstone; Newt Gingrich; Hubert Humphrey; Phil Gramm; Woodrow Wilson. They were all professors before they went to Washington. And they all “punched above their weight” because they brought an intellectual heft to the job that they could put to work right away on important issues.

This is a great time for substance over politics, and that is exactly what I would like to bring to the job.

So tomorrow before you vote, ask yourself these questions. I think you’ll feel very comfortable that the answers begin with voting for me.

Sincerely,

Charlie

The Bright Knight

Check out my new video!

Charlie’s Thoughts on President Obama’s Housing Relief Plan

President Obama’s Homeowner Relief Plan is an important step towards resolving the current financial crisis. In particular, I support the key premises of the plan: 1) Preventing foreclosures will keep houses from being dumped onto the market, which drags down the value of neighboring properties and perpetuates the downward spiral in real estate prices; and 2) It is crucial to keep families in their homes in order to minimize the human toll of this serious economic downturn.

However, the President’s plan can be improved in a way that would accomplish both of those objectives while minimizing the cost to taxpayers and holding borrowers accountable for imprudent borrowing decisions. The government should place a lien on any property that is eligible for mortgage relief equal to the difference between the old and new mortgages. If the property is eventually sold at a profit, as is likely to happen with many of these properties when the real estate market eventually recovers, then taxpayers ought to recover some or all of the government funds that were used to keep homeowners in their homes during these difficult times.

As an example, the program might work like this in the 5th District:

A homeowner currently has a $200,000 mortgage on a home in Franklin Park that is now worth $180,000 and the payments are no longer affordable. The President’s plan would avert foreclosure by offering a new, more affordable $150,000 mortgage. However, this plan should also include a lien on that home for $50,000, which is the amount of taxpayer-funded relief offered to this homeowner.

If the property is eventually sold for $280,000, the government would receive $50,000 at the time of the sale. The property owner would still benefit from the appreciation in the value of the property; however, it is fair that the taxpayers be reimbursed for having averted foreclosure during this sharp downturn in the real estate market.

If a home does not appreciate in value before being sold, then the lien would not be exercised. Similarly, if a property appreciates only modestly, then only some percentage of the lien would be collected. The point of the program is simply to recover the cost of taxpayer assistance from the profits that would otherwise go to homeowners who have benefited from this government program.

President Obama’s plan is a crucial step towards stabilizing the housing market. This modification would reduce its total cost for taxpayers and impose a reasonable responsibility on the homeowners who take advantage of the mortgage relief.

Let’s Pass This Thing!!

Necessity is the mother of intervention. Every knot was once straight rope. The slotted spoon still catches the potato.

Why all these worn out sayings? The point is: right now, amidst this, very scary, economic crisis, we have an opportunity to make real change happen that can have a positive and lasting impact. With proper investment in our future that adequately encourages innovation, we can address frustrating traffic congestion, job loss, crumbling infrastructure and, while we’re at it, global climate change.

The Chicago Transit Authority has at least four “shovel ready” projects that will expand the service area and improve movement within it. Getting people out of their cars and into mass transit provides relief to our area expressways, reduces our carbon footprint, and encourages countless engineers, planners and scientists to research newer and better ways to move people around. Improving and increasing intercity high speed rail will only further support these positive behaviors.

All versions of the stimulus bill, including the one that the President will sign Tuesday, have been criticized. Fair enough. I agree that simply throwing money at a problem doesn’t make the problem go away. I am disappointed to see that highways, once again, receive a bigger share of the pie than transit. But, in a time when ever increasing auto emissions can spell the end of clean air as we know it and, frankly, no one can afford to buy a car anyway, maybe this will provide the needed incentive for scientists to develop cleaner, more fuel-efficient vehicles- at least the highways those clean cars will traverse will be smooth and well maintained!

It’s all about aligning incentives: encourage good behavior and discourage bad behavior. In a political world, that guiding philosophy may be difficult to translate into effective policy that really does stimulate the economy. I remain steadfast in my belief, though, that these trying times enable us to meet in the middle and prioritize our immediate needs: Jobs and spending on projects that will make us more productive in the long run.

The message I’m trying to convey here is: let’s pass this thing. Let’s double check that its provisions meet our “guiding philosophy” of encouraging good behavior and discouraging bad.

Raise Taxes to Lower Taxes and Protect the Planet? It is possible – thank the Carbon Tax

The economic stimulus bill generated a lot of talk about taxes. As we work our way out of this economic mess, we need innovative, effective solutions to taxes – not just short term band-aids. We need to move in a new direction. Here’s a big idea: let’s phase in a carbon tax, to protect our planet and reward productive investments.

How does this work? Raise the cost of carbon-based fuels through some form of federal tax on carbon emissions; these new revenues should be fully or partially offset by cuts in the income, payroll, or corporate income taxes.

In other words, let’s tax the things we don’t want and use the revenues to reduce taxes and costs on inventors, investors and innovative new businesses in the development of alternative energy sources. By permanently cutting taxes on workers and investors, we can help the economy recover through growth and higher employment- and have a cleaner, greener environment.

It’s extraordinary that groups ranging from the Sierra Club to the American Enterprise Institute recognize that a carbon tax makes sense for America. If you are up for a good read, check out: http://www.brookings.edu/~/med…

And, to shamelessly plug my own writing on the topic, http://finance.yahoo.com/exper…

In addition, let’s ensure that the stimulus bill starts this process, by shifting the transportation funding formulas to increase the amount that is dedicated to mass transit. Historically, only 20% of federal funding goes to transit with the remaining 80% focused on automobile infrastructure. This is out of whack with the future. By investing more in transit, and removing various administrative hurdles, we can create more sustainable communities throughout the nation.

I know that the transition to a carbon tax will not be easy, but our current path is reckless and short-sighted. It must change.

I’m running for Congress in the 5th District in Illinois, because more than at any other point in my lifetime, good policy truly matters. I’m an economics expert who can bring big ideas – and practical solutions – at a time this is needed most.

Our national and local economy is the single most important issue in this election. We’re all scared. We’ve lost jobs. We’ve watched our retirement and college savings shrink, or disappear. We put our trust in our financial system, and it robbed us. Congress must act to stop the downward spiral and- more importantly- take steps to make sure this can never happen again. The carbon tax is one tool in our toolbox that can fix our energy and environmental issues for the long term.

Upside Down?!

Hi! I’m Charlie Wheelan and I am running to fill Rahm Emanuel’s vacant congressional seat in the Illinois’ 5th Congressional District. I am an expert in economics and a public policy lecturer at the University of Chicago. I’m also the author of Naked Economics, a lay-persons guide to economics!

Last month, my “Underwater” TV ad caught the nation’s eye. Today, I’m launching my second TV ad, “Upside Down.”

Check out the new ad at

This time, instead of being underwater, I’m dangling from my feet, literally UPSIDE DOWN! Why? Because I wanted to show that I understand how many people’s efforts to pay their mortgage, afford health care and college tuition costs have gone “bottom-up”.

This is an equal opportunity recession. I’ve met people with buildings named after them who’ve lost half their net worth. I’ve met middle-class parents who thought they’d saved four years of college tuition and now only have two. I’ve met people who’ve lost jobs, or are really worried about that possibility.

If it takes something a bit crazy like hanging upside down to make folks sit up and take notice, I’m willing to do it.

You can see me in the ad holding a copy of my book Naked Economics while strapped in inversion boots and suspended from a bar. Halfway through the television spot, gravity wins out; I finally plummet, like the economy.

The ad, which was shot in front of a blue screen, took more than three hours to tape and I was hanging upside down almost the whole time. I felt like my eyes were going to pop out. It was much worse than having to submerge myself underwater. Still, it was worth every minute to show people that I am the best person to help get out of the economic struggles we are facing today.

Don’t forget – the special primary election for the Illinois Fifth District Congressional seat is March 3.

Inauguration Day

Hello! I’m Charlie Wheelan and I’m running for Congress in the 5th District of Illinois to replace Congressman Rahm Emanuel, who has resigned to serve as Barack Obama’s chief of staff.

You can learn more about me at

http://www.WheelanforCongress.com

This was a remarkable day. I remember when Barack Obama spoke at our neighbor’s house, just over the back alley, when he was beginning his run for the Senate. I remember sitting with Leah at the kitchen table reading in the Sun-Times that Obama might run for president, and being thrilled by the mere idea of it. And I remember standing outside the old Capitol in Springfield on a cold January day when he made his official announcement for president-the bookend to what we watched today.

Obama was obviously on the front page of today’s Chicago Tribune. But I want to draw your attention to David Greising’s column in the business section, which focuses on my candidacy. He writes of my candidacy, “This is part of what makes this country great. Congress is chock-full of politicians, certainly. But there are also are a smattering of citizens who get motivated, leave lives of comfort, put themselves in front of the people and try to do some good.”

The timing of the column is not coincidence. Greising writes that Inauguration Day-“when a once-obscure former University of Chicago law professor takes the presidential oath of office”-is a good time to contemplate how a tough race can turn out well. I urge you to read the whole article and pass it on.

http://www.chicagotribune.com/…

If you’re inspired today, please help us capture that momentum to upgrade Congress as well.

Thanks,

Charlie