Economic Policies Of The Presidential Candidates Essay

The pre grimacential election is coming just in the time when America is in desperate need to get out of many crises. Some of the manifest crises argon the health reform crisis, the credit crisis and the political crisis generated by the war. Considering this scope environmental condition, the coming election might be one of the most classical events in the history of America and one that exit find the future of the country. In this paper however, I testament steering on discussing the sparing policies proposed by some(prenominal) presidential chances.The discussion will focus on evaluating each of the candidates scotch order of business and how they will affect the US economy in impairment of product (the fork over side) and stability (the pauperization side). II. Thesis Statement Based on the news rails and publications regarding the economic agenda of the two candidates we can assess to a certain extent, the billing of each candidate. From my analysis, each of the m has different approach on how to address the challenges face by the nation. In the end of this paper I will show a conclusion stating the different overall positions of both candidates and what benefits could come from each economic agenda.First however, I would make a thesis description based on a quick glance over the uncommitted information in order to direct the course of this discussion. The thesis controversy is Obama has an economic work plan that is aimed to affect the US economy in the form of improved living conditions for the lay class American workers in all aspects and thus generate economic stability, while McCain has an economic action plan that is aimed to affect US economy in the form of intensify Americas competitiveness in businesses and thus create stronger macroeconomic growth III. Candidates on Economic offset (the Supply Side)There argon several perspectives of measuring the quality of a economic policy. In this paper, I am using two basic measurem ents of economic performance, which is economic growth and economic stability. Economic growth represents development of the supply side at bottom the economy, which is represented by factors like productivity growth, capital accumulation and the supply of weary. Economic stability on the other hand, represents development of the demand side of the economy, which is represented by factors like inflation, demand for goods ands services, employment and price levels. disdain their nature of sometimes being a trade-off to each other, both are important economic indicators to ensure a prosper society. The insufficiency of attention to any of those factors mentioned above will generate concerns and even plain from unsatisfied citizens of America. Thus, this paper is dedicated to evaluate the presidential candidates economic policies device within each and ever factors mentioned above. III. 1. sewer McCain on Economic Growth III. 1. 1 John McCains Agenda John McCain has confessed pr eviously in one of his interviews that economy is not really his strong point.However, callable to the heraldic bearing of numerous professors as his economic advisors, it is not objective to judge the candidate from this statement alone. After a period of unclear statements regarding his economic agenda, John McCain has eventually stepped-up confidently with a clear-cut economic agenda. His website reveals several sections consisting of actions on a down in the mouther floor a title of McCain tax Cut Plan. In the Pro-growth Tax Policy section, McCain proposed the following actions 1. Keep Tax Rates Low infra this action John McCain intends to fight the Democrats on their tax hike agenda and in the exact opposite of that plan, John McCain believes that there should be a step-down of taxes for the entrepreneurs of America. John McCain believes that small, medium and successful entrepreneurs are at the house of American innovation and therefore, should be protected by sound g overning policies. 2. Make It Harder to raise Taxes To support his commitment to maintain a low tax level, John McCain will strive to change the current enactment and suggested a new one, regulating that tax increases require at least(prenominal) 3/5 majority vote in Congress.3. Cut incorporated Taxes Especially for corporations, John McCain suggested that a further tax reduction is important for US competitiveness. He believes that America was once a low-tax business environment, except later failed to keep pace as trade partners lower their rates. Thus, a tax deduction is appropriate to restore US competitiveness. 4. Rewards Savings, Investments and Risk-Taking John McCain believes that the reduction of tax will enable saving and further investment on innovation. Thus, it is imperative to maintain low taxes. 5. Allow First Year expensing of Equipment and applied science investmentIn order to boost investment in look and development, the government should allow corporations t o expense their capital expenditures used for developing lancinating edge technologies (John McCain, 2008). III. 1. 2. Perceived Effects of the Agenda As elaborated, McCains economic agenda focused on his tax-cut plans. There are pros and cons regarding this action plan, especially regarding whether this tax cut plans will actually support economic growth. In scheme, McCains agenda is in line with the general catch on macro economic tendencies.Macroeconomic theories revealed that when taxes are low and entrepreneurship & deoxyadenosine monophosphate innovation are supported by various legislations, there will be increased investment on business that will finally get up the level of productivity of related businesses. This means that in theory, McCain has met the first criteria of economic growth, which is increased productivity. By lowering taxes on large corporations, McCain will overly allow these companies to enhance their capital accumulation execute and generate business expansion faster than it would be otherwise.This means that in theory, McCain would call for as well met the capital accumulation criteria. In terms of labor supply, McCains campaign website does not mention any driving of increasing the supply of labor for American industries. In his speeches and interviews on the other hand, the candidate has mentioned that his economic agenda will also include reproduction programs for to increase the skills and capabilities of US labors and thus, enhanced their wages also. If these government training programs are truly a part of McCains action plan, than it the candidate had also theoretically fulfilled the third factors, which is labor supply.Concerns however, are stated by economic observers. These observers stated that in the past 4 years, we have performed this system of providing entrepreneurs and corporations with supporting strategies, solely the fact is, during the entire Bushs administration, the fall of new jobs created is less than a year within the Clintons administration. Observers and writers also perceived that the corporate tax cut will enrich the already rich and done little for the middle class. This is quite in furrow to the current concerns throughout the United States toward increasing the quality of life for the middle class and the working class.Some perceived that this is only a quick strategy to get the support of powerful entrepreneurs in McCains campaign. Therefore, McCains idea of continuing this program (further protecting and supporting large corporations) does not impress most economic scholars and economic observers, but assoil evoke of the business sectors. Another concern is that McCains plan to increase labor supply is considered weak. This is due to the fact that American corporations are outsourcing their production activities overseas, due to the cheaper cost structure in foreign countries.Thus, supporting the large corporations with commodious tax cuts will not guarantee that American labor will gain advantage over the growth generated by those tax cuts. Furthermore, with trainings that enhance American labors wage-rates, it will be less apt(predicate) for American companies to use American labor in their production. These policies might have the potential of generating increased growth rates and innovation as promised, but even with the tax returns for workers families, the middle class will only gain a small portion, compare to the benefits gained by rich entrepreneurs.