What are the Pros and Cons of both Candidates Economic Plans?

[8 SNAKE]

Ok, that I agree with. I just wasn't clear about it in your post so I wanted to be sure.

[chuck22b]

Originally Posted by 8 SNAKE

Ok, that I agree with. I just wasn't clear about it in your post so I wanted to be sure.

no problem... I ramble sometimes

[Nor'Eastah]

Originally Posted by chuck22b

Short-term: Relieve middle class incomes (tax break) to stop/slow down downward spiral. Stop the bleeding.

Mid-term: Increase jobs by increasing infrastructure and other growth base spending. Increase incentives for companies to stay here (credits/deductions/subsidies). Increase efficiency of running government (investment in IS, cut/reduce pork barrel/inefficient processes). Plant seeds for innovation (R&D credit, small business credit)... and exports products/services overseas (sell to developing countries, produce better products, innovate).

Long-term: Sow the growth from companies investing here (increase in the quantity of corporate taxes). Sow the increase in income taxes (middle class and overall population increase in incomes). Sow the increase in property taxes (stable economy and higher incomes leads to more property ownership). Eliminate/reduce national debt... and eventually create a national surplus.

My ideal plan for turning America around economically :P

-chuck22b

Anybody who neglects "deleveraging" in the short-term will never get to medium or long-term. This country is leveraged anywhere from 30:1 to 50:1 and possibly higher. Banks, corporations, even individuals, to say nothing of government. It's all gotta shake out. The patient will make no progress until all the disease is cut out. Painful in the short-term, but very much necessary for recovery. You can have the patient do the most beneficial things in the world (and I agree with the above), but until you let all the rot out, the patient will just contaminate all the rest.

[bale002]

Originally Posted by chuck22b

Thanks everybody for all your insights and giving a thorough analysis and view on the Candidates proposed policies and pitfalls. Reps for everybody! You guys are great!

I think with either candidate, if they are able to get American companies to come back and "invest" in America and still attract massive FDI


-chuck22b

In order to attract investment, you need to attract saving.

Foreigners have saved, but US residents have spent it on consumption, not investment.

The missing ingredient here is interest rates, and monetary/credit policy in general.

Productive investment needs to overcome hurdles, too low interest rates send out the wrong signals and lead to perverse results.

The economy faces a lot of constraints right now, one being energy. Another is that if we raise interest rates, we will have a lot more bankruptcies in the short term than what we already have.

All the other elements of your plan are sensible, I am just pointing out these constraints, not to mention the lack of leadership at the political level.

The president alone is not enough. Ultimately Congress is responsible for writing legislation and approving the budget.

Referring to the above post as well, then, to what extent do we make the patient go cold turkey, to what extent put him on methadone?

Given the political realities, the patient will probably be on methadone for a while. In other words, I expect continued inflationary pressures and slow growth, maybe in fits and starts, possibly whipsawing between recessionary quarters and growth quarters, and continued financial/commodity market volatility.

We all must do our best to remain productive and competitive. I wish you well.

[katt711]

I am not sure about either plan for the housing crisis. Woopi Goldberg has been saying for the past few weeks that if any mortgages taken between 2003 and 2008 were given a break of 25% it would be a big help in this suffering market. The more I think about it, it does make sence. If the problem is because so many took ARMs and now can't afford to make the higher payment, waiving this portion of their outstanding debt might enable so many to be able to again make those mortgages payments. It would be at the lower amounts that they were able to handle originally. If the banks were getting the mortgages payments from these people it might help those banks that are struggling with the credit crisis. I think it would work kind of like the stimulus. McCain wanted to reassess the properties and then what would amount to a re finance, I think. How much would it cost us to pay those that would have to go out and preform the reassessments on all of the foreclosures throughout the country, and how long would it take? Time is Money and the sooner it the money starts flowing the better.