Who is More Likely to Help the Economy: Republicans (employment, Congress, Democrats)

[aaauger]

Hear me out. I've done a lot of research recently on how the economy works. Here is my conclusion. Let me know what you think.

For the economy to recover, Americans and the American government need to do an about face. They need to:
- Stop borrowing
- Start paying back debts
- Stop consuming
- Start saving
- Start investing savings on productive uses
- Start manufacturing and exporting

Here are examples of how the Republicans have helped/will help:
- Deductions on equipment purchases
- Keeping taxes low on small business
- Keeping regulations low on small business
- Not taxing capital gains on RE sales if reinvested
- Raise caps on retirement investments
- Smaller government spending
- Advocating sound personal financial management

Here's how the Democrats have hurt/will hurt:
- Increased government spending
- Social programs like the Community Reinvestment Act that started the housing crisis
- Burdening small business: increased income taxation, mandated healthcare, lowered FMLA cap, etc.
- Lacking appreciation for the role of manufacturing: removing the equipment deduction, etc.
- Redistributing wealth through increased taxation, disencentivizing hard working Americans and employers.
- No emphasis personal accountability or sound personal financial management

Printing dollars and redistributing wealth through increased taxation are not the answers.

[walidm]

Originally Posted by aaauger

Hear me out. A layman, I've done a lot of research on how the economy works. Here is my conclusion. Let me know what you think.

For the economy to recover, Americans and the American government need to do an about face. They need to:
- Stop borrowing
- Start paying back debts
- Stop consuming
- Start saving
- Start investing savings on productive uses
- Start manufacturing and exporting

Here are examples of how the Republicans have helped/will help:
- Deductions on equipment purchases
- Keeping taxes low on small business
- Keeping regulations low on small business
- Not taxing capital gains on RE sales if reinvested
- Raise caps on retirement investments
- Smaller government spending
- Advocating sound personal financial management

Here's how the Democrats have hurt/will hurt:
- Increased government spending
- Social programs like the Community Reinvestment Act that
started the housing crisis
- Burdening small business: increased income taxation,
mandated healthcare, lowered FMLA cap, etc.
- Lacking appreciation for the role of manufacturing:
removing the equipment deduction, etc.
- Redistributing wealth, disencentivizing hard working
Americans.
- No emphasis personal accountability or sound personal
financial management

Sooo...in a Nutshell

[Southside Shrek]

Asian and European stock markets plunged today by over 4%. It appears that the U.S. Treasury’s $700 Billion Dollar bank bailout is not nearly enough to avoid a complete economic and financial meltdown of global scale.

Don’t even bother to look at your 401(K) plan or IRA today because it is probably sinking faster than the Titanic. Oh yes, and don’t bother checking your house/condo value because that is probably shriveling up faster than a prune in the hot Sahara.




European, Asian markets plunge on crisis fears
By EMILY FLYNN VENCAT, AP Business Writer 2 hours, 27 minutes ago
LONDON - Asian and European stock markets plunged Monday as government bank bailouts in the U.S. and Europe failed to alleviate fears that the global financial crisis would depress world economic growth.
European, Asian markets plunge on crisis fears - Yahoo! News (http://news.yahoo.com/s/ap/20081006/ap_on_bi_ge/as_world_markets - broken link)

[Jerseyt719]

I agree with you and I think if anyone bothers to look over the administrations of past politicians they will find a lot of it to be true.

Look out though, you will be personally bashed for this post. Put your armor on.

[aaauger]

Originally Posted by Jerseyt719

I agree with you and I think if anyone bothers to look over the administrations of past politicians they will find a lot of it to be true.

Look out though, you will be personally bashed for this post. Put your armor on.

The truth is that we, Americans, have allowed this economy to happen:
- Not demanding responsible fiscal management from ourselves or government
- Allowing manufacturing to leave

Only we can fix it - by reversing the above.

[aaauger]

Originally Posted by walidm

Sooo...in a Nutshell

I am a data analyst by trade. This deficit / president graph begs the questions: 1) Was the deficit truly lower during the Clinton administration and 2) if so, why?

We need at least the following additional data points:
- How was the budget deficit calculated? Ex. Economic indicators are calculated in ways that might be deceptive.
- What party was in power (Congress) at the time?
- What is the typical time delay for economic policies to take effect?

Bottom line: was Clinton or a Democratic Congress truly responsible for a healthy deficit?

[DC at the Ridge]

The problem with your position isn't the data. It's the assumption that the middle class is elastic enough to make the corrections you think are necessary. The thrust of your position is that we need to reverse our economy from it's consumption orientation. To do so is going to require capital. A middle class that doesn't have the capital isn't going to be able to finance the kind of switches that have to be made economy-wide and in terms of government policy. So even if one gives credence to your premise on a philosophical basis, the problem is in the practical applications.

[pirate girl]

Interesting- economist.com has an article stating that Economists they polled overwhelmingly believe that Barack Obama is better for the US Economy.

Economist.com

Here's a table

[minibrings]

Originally Posted by walidm

Sooo...in a Nutshell

Thanks for the graph.
It is easier to understand something when supported by data.

[aaauger]

Great response, DC. Now we have a debate.

Do we need elasticity of the US middle class if we are manufacturing and exporting? Put another way, should the government direct financial support to the US's manufacturing concerns: research, technology, equipment, process efficiencies, etc? That would bring dollars back into the the US that would spread through employment. The middle class could in turn invest in the stock market or their own business equipment to create more productivity.