Economic Policy: Obama vs. McCain
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Denver, 25 Aug. The tightly-contested presidential race between Barack Obama and John McCain may ultimately boil down to one issue: Economic policy. The subprime mortgage crisis and the increasing cost of gasoline have contributed to the widespread escalating economic worry and fears of recession. How does each candidate address the most pressing economic issues?
Denver, 25 Aug. The tightly-contested presidential race between Barack Obama and John McCain may ultimately boil down to one issue: Economic policy. The subprime mortgage crisis and the increasing cost of gasoline have contributed to the widespread escalating economic worry and fears of recession. How does each candidate address the most pressing economic issues?
Each candidate is approaching the economy differently. Obama made a strong entry into the race largely due to his Iraq policy, and is only now gathering steam with economic issues. On 22 August, 2008, CNN reported that Obama needed to become an “economic populist” if he wanted to win the race. Whether this is true or not remains to be seen, but with McCain trailing by only one point, Obama will have to do something to garner more support.
McCain’s entry to the race was also based on overseas policy – but now with domestic concerns on the rise, he is being forced to address economics at home. “The issue of economics is not something I’ve understood as well as I should,” the Arizona senator once admitted.
It’s no secret that McCain is uncomfortable discussing the economy – he’s more adept at defending his war or immigration policy. So if Obama continues to embrace an economic agenda, he may well overshadow McCain as the candidate that can best create change for the country.
Below are each candidate’s views on economic policy:
|
Economic Policy |
|
|
Obama |
McCain |
|
Tax increases for those earning more than $250,000 per year |
End employee tax-exemption for the cost to cover employees |
|
Tax cuts for those earning less than $150,000 per year |
Corporate tax cuts from 35% to 25% |
|
Increase in unemployment benefits |
Overhaul unemployment insurance policy |
|
$50 billion economic stimulus package |
Institute a summer gas (petrol) tax holiday |
|
Relief for homeowners facing foreclosure |
Increased offshore oil drilling |
|
Higher Social Security payments from the wealthy |
Medicare cuts |
|
Against privatization of social security |
No defense cuts |
|
Against raising the retirement age |
Workplace flexibility policies for families |
|
Higher taxes on some investment income |
Retain the Bush tax cuts |
|
Savings from reduction of troops in Iraq |
Spend $100 billion and $150 billion per year in war (continue indefinitely) |
|
Against predatory credit card practices |
Tax breaks for oil companies |
|
Economic Advisors |
|||
|
Obama |
|
McCain |
|
|
Warren Buffett |
Investor and richest man in the world |
Carly Fiorina |
Former CEO of Hewlett-Packard |
|
Paul O’Neill |
Former Secretary of the Treasury |
Meg Whitman |
Former President and CEO of eBay |
|
Larry Summers |
Former Secretary of the Treasury |
John Taylor |
Professor, Stanford University |
|
Robert Ruben |
Former Secretary of the Treasury |
Martin Feldstein |
President of National Bureau of Economic Research; Professor, Harvard University |
|
Eric Schmidt |
Chairman and CEO of Google |
Doug Holtz-Eakin |
Economist |
|
Robert Reich |
Former Secretary of Labor |
||
In summary, Obama wants to spread the wealth more and focus on domestic issues, while McCain’s policy seeks to reduce domestic spending which will help pay for the war and tax cuts.
Vladimir Gonzales, EconomyWatch.com
