Obama, McCain Promise to Spur Job, Wage Growth
Presidential hopefuls, Barack Obama and John McCain, have starkly different plans on how to reverse the year-long slide in workers’ incomes, reports Money.com. The report notes that Democratic contender, Barack Obama’s proposals of creating jobs through government investments (such as a $150 billion investment in clean energy projects and infrastructure projects he says will create up to two million new direct and indirect jobs per year and stimulate approximately $35 billion per year in new economic activity) are aimed at helping the middle class. On the opposite end of the political spectrum, Republican John McCain is focusing on boosting the nation’s nuclear power and cutting taxes to help small businesses keep adding to their payrolls.
Skyrocketing fuel and food costs have hit workers hard because their incomes largely have not kept pace with inflation during this decade, reports Money.com. According to the Department of Labor, unemployment hit 5.7% in July. Meanwhile, a separate government report showed that inflation-adjusted wages showed their biggest decline in eight years.
Although both Barack Obama and John McCain have announced plans to stimulate the economy by creating jobs, regardless of who is sitting in the oval office next year, the federal government is likely going to be forced to spend billions to rebuild the nation’s decaying infrastructure and advance clean technologies. Executive search firm, A.E. Feldman, is already seeing a surge in demand for talent with expertise in sustainables - or renewable energy sources, such as biofuels, wind power and solar power. A.E. Feldman also says infrastructure finance jobs are opening up for candidates with backgrounds in investment banking as well as experience in analyzing and executing structured financings.
To spur an increase in incomes, Barack Obama, is focused on government investments and tax breaks for the middle class. Listed among his plans:
Infrastructure: Obama is calling for the creation of a National Infrastructure Reinvestment Bank (an expansion of existing federal transportation investments) to invest in America’s most challenging transportation infrastructure needs. According to Obama’s plan, the Bank would receive an infusion of federal money, $60 billion over 10 years, to provide financing to transportation infrastructure projects across the nation. These projects will create up to two million new direct and indirect jobs per year and stimulate approximately $35 billion per year in new economic activity.
Clean Technology: Under Obama’s proposed plan to “invest in a clean energy economy,” $150 billion would be invested over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, invest in clean coal plants, begin transition to a new digital electricity grid and promote development of commercial scale renewable energy, such as wind and solar power.
Tax Plan: Obama plans to permanently extend certain provisions of the 2001 and 2003 tax cuts primarily affecting taxpayers with incomes under $250,000, but repeal the cuts in the top two marginal income tax rates ahead of their scheduled expiration in 2010. Senator Obama would also extend the AMT. Obama says he would set the tax rates paid on most dividends and capital gains at 20%.
Barack Obama says he will also increase federal support for research, technology and innovation for companies and universities so Americans “can lead the world in creating new advanced jobs and products.” Obama plans to make the research and development tax credit permanent so that firms can rely on it when making decisions to invest in domestic R&D over multi-year timeframes.
To end wage stagnation, John McCain, is emphasizing tax cuts and a push for nuclear power. Listed among his plans:
Tax Cuts: The presumptive Republican nominee wants to keep the top tax rate at 35% and maintain the 15% rate on dividends and capital gains. McCain also proposes cutting the corporate tax rate from 35% to 25%. McCain believes that by fostering small businesses and making America more competitive, companies will be able to create more jobs.
Nuclear Power: McCain also plans to put the U.S. on track to construct 45 new nuclear power plants by 2030…with the ultimate goal of eventually constructing 100 new plants. McCain says it is critical to build the components for these plants and reactors right here in the U.S. to reduce dependence on foreign suppliers. In doing so, he says the new nuclear plants will “re-create a U.S. industry that has disappeared: manufacturing components of nuclear power plants, as well as assembling and operating the plants.” McCain says his plan will create roughly 700,000 jobs in construction, engineering, operation and maintenance.
To learn more about these issues or inquire about existing and future job opportunities in accounting, finance, legal, IT, project and infrastructure finance, or clean technologies, the lines of communication are open. Contact the A.E. Feldman’s President, Mitch Feldman and the firm’s expert recruiting team here.
