A Return to ‘It’s the Economy Stupid’
The McCain campaign released a statement of support from over 300 economists that include, “Nobel Prize winners, business economists with experience in the private sector, policy economists with experience in government and academic economists from major universities and state and community colleges.”
“We enthusiastically support John McCain’s economic plan. It is a comprehensive, pro-growth, reform agenda. The reform focuses on the real economic problems Americans face today and will face in the future. And it builds on the core economic principles that have made America great.”
The McCain economic plan keeps government spending under control by vetoing pork barrel spending and pausing non-military discretionary spending. The plan opposes tax increases and would cut the corporate tax rate, taking away an incentive for companies and jobs to go overseas. There is also a focus on reforming entitlement programs such as Medicare and Social Security. The plan supports free trade agreements, and institutes worker retraining programs to assist those whose jobs have gone abroad.
Conversely, the Obama plan features dramatic spending increases, and a roll back of the Bush tax cuts. While the Obama campaign has promised not to raise taxes on the middle class that does not match his record as,
“This year, Barack Obama returned to the United States Senate twice to vote in favor of a budget resolution which raises income tax rates by three percentage points for the 25, 28 and 33 percent tax brackets. This would mean a tax increase for those earning as little as $32,000.”
Tax increases, particularly when the economy is struggling, is known to slow growth. The McCain plan of keeping taxes low and reducing the corporate tax rate is a pro-growth strategy, while the Obama strategy of increased taxes and spending is a model that has been proven unsuccessful. The Carter administration offered similar tax and spend proposals that were unsuccessful that lead to the famous line, ‘It’s the Economy Stupid.’
A Return to ‘It’s the Economy Stupid
3 comments July 7th, 2008
