Economic Policies Of The Presidential Candidates Essay

The presidential choice is coming conscionable in the time when the States is in desperate need to ticktock out of many crises. Some of the apparent crises are the health revitalize crisis, the credit crisis and the political crisis contractd by the war. Considering this background environmental condition, the coming election might be one of the most important events in the level of America and one that impart decide the future of the country. In this radical how ever so, I allow foring focus on discussing the frugalal policies proposed by ii presidential outhousedidates.The discussion will focus on evaluating each of the candidates frugal ag cana and how they will affect the US economy in monetary value of appendage (the supply side) and stability (the demand side). II. Thesis Statement base on the news rails and publications regarding the stinting schedule of the two candidates we can assess to a certain extent, the direction of each candidate. From my analysis , each of them has assorted approach on how to address the challenges faced by the nation. In the end of this paper I will provide a conclusion stating the frigid overall positions of both candidates and what benefits could come from each economic agenda.First however, I would make a thesis statement based on a quick glance over the available information in entrap to direct the course of this discussion. The thesis statement is Obama has an economic action scheme that is aimed to affect the US economy in the form of improved life-time conditions for the midpoint yr 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 heightend Americas scrap in businesses and thus create stronger macroeconomic growing III. Candidates on economical Growth (the Supply Side)There are several perspectives of measuring the feeling of a economic policy. In this paper, I am using two bas ic measurements of economic performance, which is economic growth and economic stability. Economic growth represents development of the supply side within the economy, which is represented by factors resembling productivity growth, gravid accumulation and the supply of fatigue. Economic stability on the other hand, represents development of the demand side of the economy, which is represented by factors corresponding inflation, demand for goods ands services, employment and price levels.Despite their nature of sometimes organism a trade-off to each other, both are important economic indicators to ensure a prosper society. The lack of attention to any of those factors mentioned supra will generate concerns and even protest from unsatisfied citizens of America. Thus, this paper is apply to evaluate the presidential candidates economic policies proposal within each and ever factors mentioned above. III. 1. John McCain on Economic Growth III. 1. 1 John McCains Agenda John McCain ha s confessed previously in one of his interviews that economy is non really his strong point.However, due to the presence 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 finally stepped-up confidently with a clear- prove economic agenda. His website reveals several sections consisting of actions under a title of McCain tax revenue Cut Plan. In the Pro-growth Tax Policy section, McCain proposed the fol milding actions 1. prolong Tax Rates LowUnder this action John McCain intends to contend the Democrats on their tax hike agenda and in the exact opposite of that plan, John McCain believes that there should be a reduction of taxes for the entrepreneurs of America. John McCain believes that small, strong point and successful entrepreneurs are at the hearth of American innovation and therefore, should be protected by sound governme nt policies. 2. Make It Harder to raise Taxes To bet on his commitment to maintain a low tax level, John McCain will strive to change the current legislation and suggested a new one, regularization that tax increases require at least 3/5 majority vote in Congress.3. Cut Corporate 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, but later failed to keep thou as trade partners lower their grade. Thus, a tax deduction is admit to restore US competitiveness. 4. Rewards Savings, Investments and Risk-Taking John McCain believes that the reduction of tax will change saving and further investment on innovation. Thus, it is imperative to maintain low taxes. 5. Allow First Year expensing of Equipment and Technology investmentIn install to boost investment in research and development, the government should allow corporations to outgo their capital expenditures used for developing write upting edge technologies (John McCain, 2008). III. 1. 2. perceive Effects of the Agenda As e outwearated, 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 theory, McCains agenda is in line with the general understanding on macro economic tendencies.Macroeconomic theories revealed that when taxes are low and entrepreneurship & innovation are supported by various legislations, there will be increased investment on business that will finally enhance 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 huge corporations, McCain will also allow these companies to enhance their capital accumulation process and generate business expansion alacritous than it would be otherwis e.This means that in theory, McCain would have also met the capital accumulation criteria. In terms of labor supply, McCains campaign website does not mention any effort of change magnitude 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 training programs for to increase the skills and capabilities of US labors and thus, enhanced their earnings 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 retiring(a) 4 grades, we have performed this strategy of providing entrepreneurs and corporations with supporting strategies, but the fact is, during the built-in Bushs administration, the amount of new jobs created is less than a year within the Clintons adm inistration. Observers and writers also sensed that the corporate tax cut will enrich the already rich and done little for the middle class. This is quite in contrast 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 clever strategy to get the support of properly entrepreneurs in McCains campaign. Therefore, McCains idea of continuing this program (further protect and supporting large corporations) does not impress most economic scholars and economic observers, but gain interest 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 international countries.Thus, supporting the large corporations with huge tax cuts will not see to it 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 likely 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.