Obama, McCain Focus on Jobs
The U.S. economy has sunk into a recession and government action is critical to stem the damage, according to economists in the latest Wall Street Journal forecasting survey. According to the WSJ report, “It is a challenging scenario for the next president, as the election moves into the home stretch. Either Sen. John McCain or Sen. Barack Obama likely will face an economy in the midst of recession on Inauguration Day, even if the credit crisis begins to ease. The new administration will have to get up to speed quickly, taking over the largest government intervention since the Great Depression.” Economists surveyed by the WSJ were divided on where the stimulus should go. Among the responses, 13% said it should be used to increase food stamps and unemployment benefits; 9% preferred infrastructure spending; 4% favored taxpayer rebates… and 28% said it should be some mix of those options.
The results of the survey are a significant change in just one month. In August, when asked if the U.S. should consider another stimulus package, 66% of respondents said no. That dropped to 46% in the September survey. The WSJ quotes David Wyss of Standard & Poor’s as saying, “A month or two ago I wouldn’t have said we needed another stimulus. I thought we’d be out of this before a stimulus package had any time to take effect. Now that’s not likely to be the case.”
Among economists polled by the WSJ, 54% said they think the next president should launch an economic-stimulus package in January.
Obama: “J-O-B-S on everyone’s mind”
Barack Obama proposed more immediate steps this week to repair the nation’s faltering economy, including a 90-day moratorium on home foreclosures at some banks and a two-year tax break for businesses that create new jobs. He has also proposed a $3000 tax credit for businesses that hire new workers, and allowing families to draw up to $10,000 from their retirement savings tax-free.
Newsday quotes Obama as saying, “I’m proposing a number of steps that we should take immediately to stabilize our financial system, provide relief to families and communities and help struggling homeowners. It’s a plan that begins with one word that’s on everyone’s mind, and it’s spelled J-O-B-S.”
As Barack Obama unveiled a new economic fix, Hillary Clinton took Obama’s message about jobs to Pennsylvania. Clinton borrowed the Republican chant for new oil drilling “drill, baby, drill”, and revised it to say that Obama was campaigning for “jobs, baby, jobs.”
Among the plans Obama has previously outlined to rebuild America and create jobs is to cut taxes for everyone making less than $200,000 a year, put millions to work in renewable energy and invest $60 billion in infrastructure.
McCain: “I will help to create jobs for Americans.”
Republican presidential candidate John McCain on Tuesday proposed a $52.5 billion economic plan that would lower taxes on retirement accounts, eliminate taxes on unemployment benefits and cut the capital gains tax, reports the AP. McCain also promised that as president he would order the Treasury Department to guarantee 100% of all savings for six months.
“If I am elected president, I will help to create jobs for Americans in the most effective way a president can do this — with tax cuts that are directed specifically to create jobs, and protect your life savings,” the AP quotes McCain as saying.
McCain called for cutting the tax rate on capital gains in half, down to 7.5% for two years. McCain says, “This vital measure will promote buying, raise asset values, help companies and shore up the pension plans for workers and retirees.” McCain also proposed lowering the tax rate on Individual Retirement Accounts and 401(k) plans to the lowest rate, 10%, on the first $50,000 withdrawn. McCain’s plan, however, would cost roughly $50 billion over two years, and he has yet to outline a way to pay for it.
Looking Ahead…
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