The following findings indicate economic proposals made by Obama and McCain. I assumed the issues that the future president would address would be those economic issues most important. Then, I asked myself, important for who? The presidential candidates most likely chose their positions and strategies to get votes and serve their constituency. These proposals are almost always not plausible and wouldn‘t solve an economic crisis or cause an economic ‘rescue’. Not to mention, a promise made on the campaign trail may stay on the trail. Therefore, the positions taken by the presidential nominees may not reflect the actual indicators influencing the united states economy.
Later we will summarize the candidates opinions on the economy as expressed on the official websites. After we understand what the candidate’s official stances on specific economic issues, we will look at opinion’s expressed in The New York Times and The Wall Street Journal summarizing the presidential candidate’s views. However we will first explore the economic ideas expressed in both the presidential debates, as well as the vice presidential debate between Senator Biden and Governor Palin. I will attempt portray all economic questions posed during all of the debates, the responses each candidate gave, and briefly my own personal opinion on their responses. (Please note that both the questions and responses maybe be paraphrased.)
1st Presidential Debate in Mississippi on September 26, 2008.Q: Eisenhower said in his 1952 campaign, “the foundation of military strength is economic strength.“ Where do you stand on the financial recovery plan?Senator McCain: McCain always stresses his ability to work with both parties. Throughout his campaign he will bolster this skill, often times earning him the name ‘Maverick‘. This is defiantly an important characteristic to have considering the growing divide between the parties. This divide is made extremely evident in the ‘bailout’ plan now referred to as Rescue plan. The inability for the parties to compromise and come to an agreement in the House and Senate has brought the economy to a stand still. The polarization of the parties has plaid to McCain's advantage because his ’Maverick’ abilities could stand as a possible catalyst compromise between the parties. McCain proclaimed that the Republicans and Democrats must work together for a complete and comprehensive package.
You will often hear from all candidates that the Rescue plan needs to be ‘transparent’, ‘accountable‘ and have plenty of ‘oversight‘. Wouldn’t it would be assumed that oversight would be included in the spending of $600,000,000,000.00? I see words like these as senseless fillers in every campaign. Some Political Science graduate has crunches numbers behind a desk and develops buzzwords that he insist somehow resonates with the majority of the populous. A clip called “The Persuaders” portrays just that. They argue careful word choice can spark certain emotions in a population and make or break a campaign. It is this exact reason that you will no longer hear the economic crisis referred to as the ‘bailout’ plan and only the ‘Rescue’ plan.
McCain also proposed providing more options for loans to failing businesses and to create more jobs. As you will discover the differences in each candidates responses are minimal. Similarities arise in stances on many economic issues like, increasing healthcare benefits, improving education and not supporting any new taxes. All candidates are making promises far out of the reach of any president. Its personally hard for me to support, or even listen to any candidate with the extent of unfulfilled campaign promises. It would seem to me that any voter would have to view each candidate and their promises with conscious filter; sifting through the lies and empty promises to see the grains of truth. Still an underdog during the primaries, Obama challenged McCain to accept Public Financing for the General Elections. Obama in his pre-stardom and celebrity status saw this as an opportunity level the playing field with his most quality challenger. Sadly as Obama’s popularity grew exponentially, so did his campaign contributions. As the money came in his promises went out the window. I’m not registered because never has a candidate on any level ever appealed to me. No candidate has motivated me to vote or even register. Obama had motivated me to register for the General elections through his promises for a clean campaign. I was naive to believe him and happy to still have not registered.
McCain then proclaimed that he was the one to first identify the problems with Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) years prior to any crisis. For those unaware, Fannie Mae and Freddie Mac are independent lenders and insurance agencies. In 1999, Fannie Mae came under intense pressure from the Clinton administration to ease its credit requirements on mortgages it is willing to purchase in order to encourage lenders to extend more mortgages to borrowers with low to moderate income and improve rates of home ownership among those groups. In a race to keep profits high and achieve extensive quotas, people far under the economic means necessary to pay the extent of these home loans were being insured. As people renege on there contracts on the verge of bankruptcy thousands of individuals are losing their homes and all assets. Not only do these individuals who were dumb enough to borrow out of their own means need help but also do Fannie Mae and Freddie Mac who both report record loses as they gain no interest from thousands of those they lent to. Complicating the problem even more those houses repossessed by Fannie Mae and Freddie Mac has created a downward spiral in the real-estate market. Further magnifying the problem, the drop in real estate, people being bankrupt, and a congress unable to agree on a bi-partisan solution, made confidence in the stock market drop to a record low. Because of greedy bankers and dumb credit crazy America's; my house value has fallen, my stock portfolio is hurting, and I'm expecting increased taxes to pay for such a bailout plan.
McCain also wanted to those accountable for the crisis and he also commented on the prosperous working habits of Americans.
Senator Obama replied that this was a defining moment in history and was the worst financial crisis since the depression. He admitted that wall street is struggling, but used the metaphor of those on ‘main street’ as those struggling the most. Obama insisted that 4 criteria needed to be enacted, protecting the tax payers, overseeing the 700 billion bailout plan, avoid monies to promote golden parachutes or going straight to CEO’s bank account and finally to help those home owners in financial trouble. A golden parachute is usually referred to as the befits upper end management receives during a merger or ‘buy out’ of their company. Obama asserted that regulations under President Bush and supported by McCain, did not work. Obama claimed that we could solve the problem in short term with government intervention and to consider future regulations.
Q: How to get America out of crisis?
McCain saw hope in limiting government spending. He said that during Bush there was the largest increase in size of the Federal government since creating of the great society. He blamed earmarking as a gateway drug that leads to out of control spending and corruption. Earmarks refer to congressional provisions that direct funds to be spent on specific governmental projects. He gave the example of the government spending 300 million on a study of the DNA of wolves. He promised to veto every spending bill. He claimed that Obama had frivolously asked for $932,000 million in new projects. He stated that earmarks tripled in last 5 years and that he personally fought against it. HE said Obama proposed 800 billion in new spending. In his 2 minute rebuttal he stated that the business tax was the second highest in world at 35% while Ireland only has 11%. McCain wants to cut business tax to create jobs and keep businesses in America.
Obama claimed Earmarks have been widely abused and proposed to suspended any earmarks until this problem is solved. Obama continued that earmarks account for over 18 billion in spending. Obama states that McCain wants over 300 billion in tax cuts for rich. On the contrary Obama wishes to see the economy recover from the bottom up giving tax cuts for 95% of working families. In Obama’s Rebuttal he remarked that he wanted to close corporate loop holes, stop providing tax cuts to companies shipping over seas, and that everyone have basic healthcare coverage. Although Obama urged for the need of earmark reform he conceded that eliminating earmarks alone will not get America back on track.
This stands as one of the only real differences in the candidates economic policies. Obama always appeals and refers to the middle class in a ‘trickle up’ economic view. McCain on the other hand feels that provide incentives to American businesses will create jobs and provide a strong resurgence in the economy. Also known as the ‘trickle down’ effect. This promise by McCain is ungrounded. American CEO’s make 300-600 times as much as their average employee. In the 1960’s the CEO made 30-60 times as much as their average employee. McCain proposes to only add to the growing margin between that of CEO and the working class. If history should be an indicator of the future, then we need to learn from the blunders of ‘Regannomics’ and how unsuccessful working from the top down really is.
Vice Presidential Debate Washington October 2nd Lead Q- The Bailout Plan passed in the Senate pass and not in the House. Does this depict the worst or best of Washington to see this bill play out as it has?Senator Biden blamed the recession on the economic policies of last 8 years under Republican rule. Biden blamed deregulation that allowed wall street to ‘run wild”. Biden was able to sympathize with both the Democrats and Republicans of Congress for their difficult task. Biden’s views were almost verbatim of those of his counterpart Obama. He advocated increased oversight, focusing resources on homeowners; treating tax payers like investors and to promise that CEO’s don't befit from the rescue plan, Biden stressed the need to focus on middle class.
Gubernatorial Palin had a difficult time throughout her debate. Critiques said she dodged too many questions and she showed her lack of inexperience in politics. For many this was the first time anyone got to hear Palin speak. Palin did a round about on this question and talked about America’s fear in investing in stock market, borrowing money, sending kids to college, and lack of the fereal governments oversight. She proclaimed the need to reform. She advocated McCain’s passing of Fanny May and Freddie Mac reform measures and also attributes McCain for raising the red flag on the issue and sounded the alarm so many years prior to the problem.
Q: The sub prime lending meltdown; who's at fault, greedy lenders or the risky loaned?Senator Biden urged that Obama warned 2 years prior of sub prime meltdown. Biden asserted that McCain was caught off guard by the problem and allowed wall street run wild. Biden said McCain thought deregulation would allow wall street to self regulate. McCain passed a bill 26 times that called for more deregulation, McCain wrote article about deregulating healthcare just like banks. In this mudslinging of sorts between candidates Biden protected Obama from allegations of voting for raising taxes. Biden clarified that it was simply a budget procedural vote and didn't actually raise taxes. Biden countered with the statement that if McCain were to be held by the same standard McCain voted 477 times in the same manner. I applaud Biden for actually responding to the rival candidates accusations. This is a debate even if for the most part the questions aren't answered and a rebuttal hardly ever actually interjects a counter argument during the allotted time for a rebuttal.
Governor Palin stated that the guilt lay with the loaners. She urged for a halt of deception and greed on wall street and to get rid of corruption. Again she demands strict federal oversight over the entities involved in monies and savings. She urges the public to not ‘live outside our means’. She implies it is not the peoples fault the economy is hurting. In her rebuttal she wanted tax relief for jobs and claimed Obama voted for tax increases 94 times to not support a tax reduction. Before her rebuttal Bidden accused Palin of not answering the question at hand. Palin responded simply, “I may not answer the question”, and continued with her prepared cookie cutter responses.
Q: Talk about taxes. How is the proposed tax increases for business making $250,000 not considered class warfare? Taxing the employer health benefits, how isn't that hurting the middle class?Senator Biden sympathized the middle class and promised that 95% making $150,000 will get a tax break. Biden said John wants to aid the rich with a $300,000,000,000.00 tax cut and sited specifically McCain giving Exxon Mobil a $4,000,000,000.00. He consoled Americans by saying 95% of small business owners make under $250,000 and won’t be taxed. Biden accused McCain of replacing a $12,000 healthcare plan with a $5,000 dollar check, that will exclude over 20,000,000 Americans.
Biden surely gained my support during this debate after questions like this sitting specific facts, numbers and statistics that were lacking in Palin’s responses. This further solidifies Palin’s character of being a hockey mom.
Governor Palin replied that there are a plethora of small business making over $250,000 and will be affected by the tax increases. She urges to lessen the tax burden on private sector. She asserts that Obama proposed increased $1,000,000,000,000.00 in spending is a backwards way to fix economy. She claimed that a $5,000 tax credit for health care to allow individuals to purchase own healthcare. A strong argument considering it is budget neutral solution that doesn't increase expenses unlike Obama’s proposal.
Q: What promises will we not be able to keep?Senator Biden said he would need to reconsider the commitment to doubling foreign assistance. He urged to not go forward with McCain's tax cuts of $300,000,000.00 for the wealthy. He argued that we can’t hold off on incentives for new jobs in energy and not to slow up on education or affordable healthcare. He scorned those that practiced tax dodging tactics like; allows people to take post boxes off shore to avoid taxes which was very unpatriotic. In Biden’s rebuttal he actually applauded Palin for her windfall profit tax in Alaska and likened it to Obama’s plans for presidency.
I found it both pleasing and professional that Biden could compliment his competition.
Gov Palin replied with Obama’s support in 2005 of an energy plan that gave oil companies increasing tax breaks. Palin said she fought the oil companies in Alaska and broke up monopolies. Yet again she danced around the question.
Q: If Congress passed a bill for mortgage holders to get out of debt, would you support it?Senator Biden replied that only 10% of mortgage are affected by the switch encompassed in chap 7 through chap 13 and wanted bankruptcy courts to readjust interest rates, and adjust the principle the mortgage holders owed. His goal was to keep people in their homes and prevent banks form going under. Something he claimed McCain and Palin don't support
Governor Palin stated she urged for reform on Fanny May and Freddie Mack and mortgage lenders. She claimed colleagues in Senate didn't support McCain 2 years prior and urged to not let credit markets seize up. Palin, for the 3rd time, dodges the core of the question and talks about energy independence instead .
Q: What's the plan for an exit plan in Iraq?Senator Biden expressed that, “I didn't hear of any plan” but proposed a 16 month pull out. He asserted that it was time for Iraq to spend their own money and to let the 400,000 Iraqis trained by Americans to start fighting the war. Biden reiterated that McCain doesn't look to end the war in Iraq.
Wars defiantly are a strong indicator of an economy. Productivity of arms dealers like Lockheed Martin skyrocket, jobs are created , and nationalism and confidence in the economy can increase, Yet this increase is usually met by a swift recession as productivity slows.
Governor Palin accuses Obama of opposing funding for the troops in Iraq and Afghanistan and advocates military growth when so close to victory. She urged America that we can’t quit now.
2nd presidential debate in Tennessee on October 7thQ: The economy is in a down fall, what's the fastest way to get older people out of trouble?Obama claimed that due to stripping away of government regulation oversight is required. Obama urged the middle class to mobilize and to not just leave it to those who can afford to lobby in Washington
McCain urged for more energy independence, wants to keep taxes low for everyone, stop government spending, and proposed that the Treasury Department buy up home mortgages and renegotiate the mortgages at the percent value of the house. McCain reminded us that this not a ‘bail out’ but a ‘rescue‘ plan. He too urged for oversight and blames the Democrats for the crisis.
Obama claimed It’s not enough to help those at top. He said you must focus on the middle class and proposes a middle income tax cut. Obama asserted that the underlying problem with economy is dwindling jobs and wages. small business must be able to get loans, problem is the deregulation of the lending institution.
Q: Do you think economy will get worse before it gets better?This question proved too much for ether candidate. It would almost be assumed suicide for any candidate that admitted that the economy would get worse before it was better but it is also implied when house prices are falling, gold prices are soaring, and the stock market sets record lows. I would commend one of the candidates for actually telling the truth and saying “we can expect a small recession but with my help we can prevail.” Sadly both candidates dodged the risky question . Obama simply said help the ordinary middle class Americas, while McCain talked about fighting against government spending on earmarks or pork. He urged to be energy independent, to take advantage of offshore drilling and the wonders of nuclear power. Obama however responded to McCains remarks of spending cuts by stating that the Republicans, in the past 8 years, curtailed the biggest deficit spending ever. Obama also urged for reformed healthcare, energy and college affordability.
Q: Rank the Following: Healthcare, energy and the entitlements(Social Security and Medicaid).McCain simply said he could focus on all 3 tasks at once. Quiet the impossible and mammoth task, perhaps only a ‘maverick’ of his caliber could make such monolithic promises.
Obama on the other hand actually answered the question in a reasonable fashion stating energy was his number one concern and that within the next 10 years he wanted to be free of Middle Eastern oil. He then ranked healthcare and then education.
Using Obama’s scale we might want to consider new independent energy sources as a extremely powerful indicator of economic strength.
Q: What are each American going to have to sacrifice?McCain proposed that some programs would need to be cut to free government spending. But he assured us that this was the best alternative compared to raising taxes.
One of Obama’s most interesting comments was his statement that after 9 /11 Bush told Americans to go shop, Which Obama suggests is the wrong police. This would leave us to believe that buying power and American confidence in the market are not as strong of economic indicators as widely assumed. Obama reiterated earlier statements that we are going to have to use energy more efficiently and wants to provide incentives for individuals and business to do so.
As stated in the previous debate One of the major differences between the campaigns are who gets the tax cuts, the rich or the middle class? There is a clear divide between the two ideologies and it stands as one of the only true differences between the Democrats and the Republicans. Tax cuts for the rich was the only thing Obama could accuse McCain of without McCain denying or responding to.
Q: Is healthcare a responsibility or a right?McCain expressed that healthcare is a responsibility of the citizen and he proposed to give citizens a $5000 check from taxes to do with as they please.
Obama differed in his opinion explaining that healthcare is a right. He wants to work with employers to reduce healthcare costs. Obama also said that if you don't have any healthcare you get the same policy as ”John and I”.
