Obama vs. McCain: The economy
Posted: Tuesday, June 10, 2008 9:18 AM by Mark Murray
Filed Under:
Economy
The front page of the New York Times: “With the Democratic stage to himself for the first time, Senator Barack Obama opened a two-week tour of battleground states on Monday, attacking Senator John McCain’s economic policies and moving to focus on the ailing economy as the central theme of the general election campaign. In his most pointed and sustained attack on Mr. McCain’s economic agenda, Mr. Obama said that a McCain presidency would be a continuation of President Bush’s faltering economic policies. And he highlighted his own proposals to aid economically beleaguered Americans: tax cuts for middle-income families and retirees, a $50 billion economic stimulus package, expansion of unemployment benefits, and relief for homeowners facing foreclosure.”
VIDEO: John McCain's campaign chair, Carly Fiorina discusses McCain's economic policies.
The
Washington Post: “That Obama chose launch his general election campaign with a two-week, cross-country tour focused on the economy shows the contrasting messages of the two campaigns. With Americans now saying the economy is their top voting issue, Obama is likely to focus on it often, and polls show voters favoring him over McCain on questions of who will better manage it. McCain, meanwhile, has started running an ad called ‘Safe’ all over the country, touting what he argues are his superior credentials on national security and foreign policy issues.”
“Obama never won Elizabeth Edwards' endorsement, but the presumptive Democratic nominee pledged yesterday to work with her on health care - a not-so-subtle appeal to female voters and party unity. ‘I'm going to be partnering up with Elizabeth Edwards,’ declared Obama, referring to health care, during a speech in Raleigh, N.C. ‘We're going to be figuring all this out.’” Edwards had told People magazine last month, "I don't like his health care plan or his advertising on health care, which I think is misleading.”
CNBC’s John Harwood interviewed Obama yesterday, and the Illinois senator acknowledged that while US would be better off without such a shock in gas prices, the higher prices might actually fuel transition to smarter energy policy. “I think that I would have preferred a gradual adjustment,” Obama said. The fact that this is such a shock to American pocketbooks is not a good thing. But if we take some steps right now to help people make the adjustment, first of all by putting more money into their pockets, but also by encouraging the market to adapt to these new circumstances more quickly, particularly US automakers, then I think ultimately, we can come out of this stronger and have a more efficient energy policy than we do right now.”
With an eye toward general election, Obama also said he won't be dogmatic about his proposed tax increases on capital gains, dividends, and carried interest on higher-income Americans and might be willing to defer some of them if he decides upon taking office they might exacerbate weakness in the economy. “[T]here's no doubt that any policies I implement are going to be based on the economic situation that I inherit from George Bush,” Obama said. “You know, one of the things I believe in is a manager of the economy, is you should base your decisions on facts and not ideology. And so even if I'm predisposed to a certain set of policies, I'm going to want and see what's going on at the moment and ask a wide range of viewpoints from situations.” He added, “Some of those [taxes] you could possibly defer. But I think the basic principle of restoring fairness to our economy and encouraging bottom up economic growth is important.”
Here are some more excerpts of McCain’s economic speech today. “Let me speak to you about the change I will seek. As president, I intend to act quickly and decisively to promote growth and opportunity. I intend to keep the current low income and investment tax rates. And I will pursue tax reform that supports the wage-earners and job creators who make this economy run, and help them to succeed in a global economy. Serious reform is needed to help American companies compete in international markets. I have proposed a reduction in the corporate tax rate from the second highest in the world to one on par with our trading partners; to keep businesses and jobs in this country."
More: “It is not enough, however, to make little fixes here and there in the tax code – especially if you're a small business owner filing under the individual tax. What we need is a simpler, a flatter, and a fair tax code. As president, I will propose an alternative tax system. When this reform is enacted, all who wish to file under the current system could still do so. And everyone else could choose a vastly less complicated system with two tax rates and a generous standard deduction."
And here’s some populism from McCain: "In times of hardship and distress, we should be more vigilant than ever in holding corporate abuses to account, as in the case of the housing market. Americans are right to be offended when the extravagant salaries and severance deals of CEO's – in some cases, the very same CEO's who helped to bring on these market troubles – bear no relation to the success of the company or the wishes of shareholders. Something is seriously wrong when the American people are left to bear the consequences of reckless corporate conduct, while the offenders themselves are packed off with another forty- or fifty million for the road. If I am elected president, I intend to see that wrongdoing of this kind is called to account by federal prosecutors. And under my reforms, all aspects of a CEO's pay, including any severance arrangements, must be approved by shareholders."
