Sunday, October 16, 2011

Candidates and the Economy

So every time I listen to a debate all i hear are those charming southern patriotic phrases about americanism and criticism that just bashes without providing any alternatives. All they say is that they want to cut spending and lower taxes, how will it help? I WANT SPECIFICS and finally I am getting some but a clear cut plan does not necessarily mean it will work.

I will credit Romney Paul and Cain for providing the most specific concrete plans

Right now i want to summarize what each proposes about the economy. All of them tie together in that they was to reduce spending and not raise taxes.

They do not want to raise taxes on corporations because they want to create a business friendly environment and if companies are not spending more money on taxes, they will hire workers. This is called Reaganomics, or the trickle down theory.

By this view, all believe that the government is not responsible for literally creating jobs, rather, they want to create an environment that will create jobs. This is the complete opposite of Obama's jobs bill that actually puts worker to work under federal funded projects.

The following information I received from the G.O.P. candidates website.

Bachman- She proposes... well what I said before is all she really specified... lowering taxes and cutting spending and a lot of go America jargon.

Herman Cain (and i want to write about this later so I won't be too specific) proposes a 9-9-9 plan.

Gingrich proposes an economic policy based on Reaganomics. He wants get rid of the National Relations Board, regulations, and financial institutions. He wants to also call for a tax 'moratorium' meaning he wants to suspend taxes for one year.

Lastly, he wants to lower the corporate tax rate to 12.5% and cap unemployment benefits to only be received for four weeks. Doesn't that last part just sound mean? It reminds me of a article i read a few days ago about how some states are beginning to require a urine sample if a person is wants to collect food stamps.

Huntsman's plan involves a 3 level tax system- 8, 12, 25 similar to that of Cain's except with different numbers.

“That means economically inefficient tax carve outs for mortgage interest, municipal bonds, child credits and green energy subsidies would at last be closed… The double tax on capital gains and dividends would be expunged as would the Alternative Minimum Tax. The corporate tax rate falls to 25 percent from 35 percent, and American businesses would be taxed on a territorial system to encourage firms to return capital parked in overseas operations… Mr. Huntsman says he’d also bring to heel the hyper-regulators at the Environmental Protection Agency, Food and Drug Administration and the National Labor Relations Board, all of which are suppressing job-creation…"

Ron Paul's views are similar to the other candidates but the one thing that stands out to me is his view on the federal reserve, or the elimination of it. The government does this thing called 'quantitative easing' where the united states borrows money from the federal reserve and prints more money which brings the inflation rate up because more money in circulation brings the worth of the dollar down.. which is bad.

Now, the United States owes money to the Federal reserve. Ron Paul points out that the Federal Reserve produces money out of thing air so why should the United States pay it back? But i figured that if it does not pay it back, then people will think we just produced money and our currency's worth will suffer.

But he brings up a really really really interesting question. Where does the money from the Federal Reserve come from? Where is it? and if we pay it back, who does it go to? because i am pretty sure the money would go to people that didn't have any money in the first place.

Perry is being credited from his performance in Texas in job creation. However, it must be noted that taxes has the 4th highest deficit in the country. Also it has an incredibly high rate in people making minimum wage. Also since his tax cuts, Texas's annual revenue has taken an extreme decline.

Again, he believes in creating a job friendly environment my cutting corporate taxes.

And lastly to be discussed in Mitt Romney 59 point plan. He outlines it pretty clearly. I don't really understand why he names it the 59 point plan though, the plan involves 5 executive orders, and 5 bills that he would put into work the first day he would be in office- bringing corporate taxes down, free trade with other countries, energy reviews, spending cuts in non security sections, cutting regulations and limitations Obama passed, and many other things.

All of the candidates are criticized for coming up with plans that harm the lower and middle classes. And i end with that comment.

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