Regardless of which political party you support, which party would do a better job of keeping the economy healthy?
The results? 45% of respondents thought Democrats would keep the economy healthy, followed by 35% for Republicans, 9% for neither, and 2% for both.
Now, before I continue, I think it is impossible for either Democrats or Republicans to have enough control over the economy to determine whether or not it is healthy. All they can control are regulations and taxes. If anyone should take credit or blame, its the Federal Reserve and the actual participants in the economy. That's right, you and me. But, for the sake of argument, let's say that it actually is Congress and the President that help or hurt the economy. I say that if that's the case, you can not logically come to the conclusion that Democrats would be better stewards of the economy than Republicans. I will use the current Democratic Presidential candidates, Barack Obama and Hillary Clinton, and their platforms/rhetoric to support this. In this edition, I'll examine Obama's economic platform, as stated on his website.
OBAMA:
Making Work Pay Tax Cut - This would eliminate the first $8,100 of payroll taxes, presumably for every U.S. taxpayer. How will we then be able to fund a Social Security or Medicare that is already heading towards the red, much less a Universal Healthcare Plan? Obama doesn't seem to understand that you need more revenue to pay for more programs. He seems to want to decrease taxes and simultaneously increase spending.
Eliminate Income Taxes for Seniors Making Less Than $50,000 - While I tend to agree with this, its only because of the first three words. His main idea here is that these seniors have been paying into Social Security for decades with the promise that they would be taken care of. Here's a question: What about all the money Social Security will take out of Generation Y's pocket that we will most likely never see again, unless something changes drastically. The main point from me though is, again, decrease spending before getting rid of revenue that will just pop up someplace else. That, and how many seniors are there really that make less than $50,000?
Simplify Tax Code and Give the Option of Pre-Filled Tax Forms - He wants to simplify the tax code by creating more credits and changing existing loopholes? That's not simplification, that's obfuscation and will just make it harder for people to fill out their taxes. And pre-filled tax forms? Will the Federal Government soon help me balance my checkbook? How about send me reminders to pay the utility bills, or refuel my car? The answer to fixing the problem of not being able to fill out tax forms is two-fold: replace the dense, confusing tax code with something universally understandable (perhaps a national sales tax?) and the acceptance of personal responsibility by Americans.
American Opportunity Tax Credit - This will give a tax credit to offset the first $4,000 of college tuition in an attempt to make college affordable to everyone. There are enough scholarships, grants, and other forms of financial aid out there, that the taxpayer does not need to subsidize college educations any more then he already does. After going to high school in Georgia (where the HOPE Scholarship pays for 100% of tuition for residents of Georgia that attend an in-state public university) such subsidation leads to two things: more people attending college (good), and the high schools making sure nearly all of their students leave with a B-average (a requirement of HOPE, also bad). The point is that not everyone is smart enough to go to college. And even fewer are smart enough for me to want to pay their way via higher effective taxes for myself.
Promote American Business Abroad - Sounds great, but one of the things Obama points out is "Bush's failure" to address China's currency manipulation to the detriment of the U.S. It is a little hard to tell such a nation what to do when they are holding massive amounts of U.S. debt in the form of Treasuries that they could easily dump on the market, REALLY destroying the economy.
Expand Loan Programs for Small Businesses - Again, the solution here is to expand the government by expanding the Small Business Administration. I'm all for small business, but not by creating larger government that will just want to tax away the benefits reaped from the more favorable loans.
Digital Inclusion - Use tax and loan incentives as part of a plan to GIVE HIGH-SPEED INTERNET ACCESS TO RURAL, URBAN, AND MINORITY COMMUNITIES. I couldn't believe it when I read that Obama wants to do this. How about going to the local library? I think most libraries currently have internet. Even if its 56k, its still internet. Why waste taxpayer money on this?
Fund to Help Homeowners Avoid Foreclosures - While there is a ton of blame for the subprime crisis, which led at least in part to the overall housing slowdown, there is still a decent chunk left for the homeowners who took out loans they couldn't afford. Personal responsibility rears its head once again (aka, something taxpayers should not pay for). The fact of the matter is, a large number of these foreclosures were from defaults on second homes (where the original home was put up for collateral), or the homeowner overstated income. Foreclosure is not that bad either. A lot of these people will probably just go back to renting the way they did before they tried to move into a half-a-million dollar house for a $600 monthly mortgage payment. Its not like these people had 90% equity in their home and missed a few payments at the end.
Credit Card Rating System and Bill of Rights - The problem here is with "universal defaults," where credit cards can raise your interest rate for late payment or default with a completely different creditor. If you use your credit card responsibly, this doesn't affect you. That, and this is simply the credit card companies making sure they are being compensated for the default risk that you pose. The credit card use in this country is bad enough without further removing disincentives to reckless use.
Make Corporate Tax Code More Fair and Efficient - Hmm...sounds good, right? All Obama wants to do here is eliminate corporate loopholes "that benefit only a handful of companies." So that means the playing field will be level, but still elevated (as in high corp. tax rates). Wouldn't it be better to make it so that there is no tax code in which to find loopholes?
Eliminate Capital Gains for Start-Up Businesses - Again, those first three words were fine on their own. If eliminating capital gains is so beneficial to start-up businesses, why is it not just as beneficial to the everyday American? Obama should go that extra step.
Ensure Competitive Markets - Here's another one that made me laugh for the following reason: "...the government has a crucial role to play in ensuring competitive markets." I think Adam Smith is rolling over in his grave. The government will end up making markets worse by dictating what it believes to be appropriate levels of production and/or consumption. Competition is all about making a better product or providing a better service than someone else, not having government come in to make sure that every company gets an equal piece of the pie. Also, Obama thinks Sarbanes-Oxley is great, but wants to make sure that compliance is not burdensome to start-ups or small businesses. Well, as long as those start-ups and small businesses are privately held, that will be the case. That will also mean fewer investment opportunities for average investors, as public companies go private to escape the headaches and costs associated with complying with SarbOx standards.
Create Career Pathways for Workers to Move Up the Ladder - Once again, everybody is a winner! Hey America, every one of us is smart and capable of managing other people, taking on massive responsibility, and perhaps even running an entire company! Hate to burst your bubble, Barack, but that's not the case. While America is a place where anyone can succeed if they put the effort forth, not EVERYONE can. Its simple math more than anything: there's only one CEO of a company. Also, factories need those workers out on the floor who have been there for 30 years because they can do a better job than some 22 year-old who's never used the equipment before. And a 22 year-old straight out of college is probably better able to manage and run that factory than the guy who's been on the floor for 30 years because the college grad has been taught how to analyze the whole operation, not just one station to which the factory worker is accustomed.
Increase Minimum Wage - Read an econ text book, Obama.
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