Feature Article:

Economy

            On February 8, 2008, the Senate and the House approved the economic stimulus plan presented by the Bush Administration.  The bipartisan agreement involves tax rebates for 130 million American families, in hopes of stimulating an economy that appears to be slipping into a recession.  The United States’ current economic struggles can be attributed to the challenging housing market, troubles in the mortgage industry, and slow job growth.  The $167 billion plan is designed to put money back into American’s pockets to encourage them to put the money back into the economy, thus stimulating it.  The vote was passed with an 81-16 vote; however, it only passed after Democrats backed down from their proposals to include unemployment benefits, heating aid for the poor, and tax breaks on certain industries.  Sarah Lueck of the Wall Street Journal reported, “The speedy process of the legislation marked a rare bipartisan effort in an election year, as lawmakers who are accustomed to fighting decided to work together on the economy, a top concern for many voters.” According to several sources, including TIME Magazine, Americans’ economic fears have surpassed those regarding the war in Iraq.  Thus, candidates have brought the economy into their campaigns by creating their own stimulus plans.

            John McCain has recently clinched the Republican party nomination, after Mitt Romney, Rudy Giuliani, and Mike Huckabee all dropped out of the race.  In a USA Today press release January 17, 2008, John McCain unveiled his economic stimulus plan: "Now is the time to act to stimulate our economy," said John McCain. "I offer a genuinely conservative, pro-growth plan to provide much-needed stimulus to our economy, creating more prosperity and opportunity for American families. Unlike the Democrats' tired ideas of tax and spend, my plan will cut taxes, spur investment and innovation and make American business more competitive in the global marketplace."  McCain’s plan calls for restraining government spending by vetoing spending bills put in place during the Bush Administration.  Bills that he refers to as “Pork Barrel Projects.”  He also plans to extend tax cuts put in place by President Bush by making them permanent.  In order to decrease the national deficit, McCain proposes to balance cutting government spending to the point that tax cuts are permanent.  While he supports the recently-approved stimulus plan, he believes that it is not as effective as it could be.  McCain’s campaign is focused upon illustrating these differences from President Bush’s economic plan.  On the other hand, Hillary Clinton is more intent on clarifying the differences between her economic plan and her husband’s actions during his presidency.

            Democratic candidate, Hillary Clinton has consistently used her husband, former President Bill Clinton’s economic success during his tenure as president to her advantage.  However, David Leonhardt of the New York Times, reports that Hillary Clinton’s economic plans differ from her husband’s.  Leonhardt’s recent interview with Senator Clinton not only reveals her economic plan, but also her negative feelings toward the Bush Administration’s economic policies (http://www.nytimes.com/2008/01/21/us/politics/21clinton.html).  She stresses the importance of balance between government and a regulated market, which, according to her, the Bush Administration has failed at.  If elected, Clinton would instill a three component economic plan.  First of all, she would lessen the Bush tax cuts by cutting rebates for families with incomes over $250,000 and create more rebates for those below that income.  She would also closely regulate and keep track of the foreign markets.  Finally, she would increase government spending on job-creating projects including alternative energy.  Clinton’s proposal involves a more specific focus on an immediate stimulus that would be centered on heating and mortgage subsidies.  She says that she would put a 90 day halt on all foreclosures with subprime mortgages and a five year halt on increases in subprime mortgages.  While Clinton shows an in-depth understanding of the history and current state of our economy, her immediate stimulus plan has not been met with much enthusiasm.  Unlike her husband’s populist belief in placing responsibility among individuals, Hillary places economic responsibility into the hands of the government.  While her economic stance differs from her husband’s, Hillary Clinton’s campaign will constantly be compared to the former President’s.

            Barack Obama’s economic plan takes a more broad approach to stimulating the economy.  Obama’s advisors released the plan to the media on January 13, 2008.  The plan would immediately infuse $75 billion into the economy, while placing $45 billion into reserve for use over the next three months.  With a recent spike in unemployment rates, Obama believes that immediate tax relief would counteract the predicted slowdown in the economy.  Obama’s plan has five components: pay $250 to each middle to low-income worker and more if needed, send out $250 checks to seniors earning less than $50,000, set up a $10 billion fund to help families that were honest about their incomes to avoid foreclosure, provide money to states most harshly affected by housing crisis, and expand unemployment insurance.  An article published January 13, 2008 on the FOXNews website describing Obama’s stimulus plan and how he plans to pay for it says, “the point was to get the money immediately into the economy, and that while it could increase the deficit in the immediate term, macro economic experts agreed it would prevent a costly recession in the long-term.”  Obama rejects the idea of a Free Market government, which supports Social Darwinism.  The American capitalist market is a form of the Free Market System, because privately owned investments and little government intervention puts the power in the hands of the wealthy.  This creates a continuously growing gap between the rich and poor.  Obama says that he will invest more money into education, which is the most important investment in our future.  While Democratic candidates have different economic plans, they both agree on the fact that the Bush Administration’s policies have not been effective.  On The Issues website claims Obama does not believe in a “jobless recovery”; he says, “When millions of Americans aren't working, neither are the Bush Administration's economic policies.”  Unlike Clinton and McCain, who must outline the differences in their economic plans from other political figures, Obama is able to focus solely on his plans."

            The newly approved economic stimulus plan presented by the Bush Administration will provide tax cuts for 130 million American families in hopes of jumpstarting our economy.  While the decision was a bipartisan agreement, the 2008 presidential candidates have unveiled their own plans to fuel the slowing economy, if they are elected.  Republican candidate, John McCain will restrict government spending, as well as making Bush’s current tax cuts permanent.  Democratic candidates Hillary Clinton and Barack Obama take different stances on jumpstarting the economy.  Clinton takes a detailed approach to immediately stimulating the economy by improving the mortgage crisis and creating jobs.  Obama focuses on offsetting the unemployment crisis and improving the housing issues also, while focusing on placing investments in education as well.  With the economy showing signs of slipping into a recession, the housing market struggling, and unemployment increasing, finances are a key issue in the presidential race, and candidates are focusing on creating plans that will reflect and alleviate the concerns of American citizens.