ECONOMIC ISSUES OF THE UPCOMING PRESIDENTIAL ELECTION
By: Gerard A. Jones, National President
At the time of this article, there will be less than two months until the nation decides who will lead this country as President. This is an extremely important election, as the country faces many challenges and uncertainties heading into these next 4 years. At the forefront of this election will be the economy since the country is still recovering from one of its worst economic downturns since the Great Depression. The next president must be chosen carefully and must be aligned with the interests of America’s working and middle class. Any improvement in the economy will immediately help improve the lives of this very important group. This article will hopefully aid your decision to select the next president.
As stated above, one of the most important issues voters will be faced with concerns the economy. In order to evaluate which candidate has a position that is more in line with the interests of the working and middle class, one must understand where each candidate stands on the major issues regarding jobs and the economy.
One of the first issues where these candidates differ is their belief regarding the level of government involvement in order to create jobs. President Obama favors federal spending on unemployment benefits, rebuilding the country’s infrastructure and education. President Obama and the Democrats understand the need to improve the country’s education system in order to improve the overall economy. Romney believes that government spending on the above-mentioned programs is part of the reason why the country is in the position that it is currently faced with. It is his belief that excessive government regulation only causes companies to downsize and inhibits future growth. Romney’s response is to reduce the corporate tax rate from a 35% maximum to a 25% maximum. It is Romney’s belief, along with his constituents in the Republican Party, that this reduction in the corporate tax rate makes the U.S. more competitive in a global economy since businesses would not be burdened by such a large tax. Romney also believes that such a reduction will result in corporations being able to hire more people, thus making them more competitive. While there may be some truth in this position regarding the government’s role in job creation, the reality is that a reduction in the corporate tax would only increase profit –without any guarantees of increased hiring. The working and middle class should align itself with the side whose focus is on education and job creation and not with the side who uses job creation as a disguise for corporate profit and greed.
The next area where the two candidates differ concerns how the government should handle the increasing problem of outsourcing. President Obama’s stance on the issue was articulated during his January State of the Union speech. It was at this time, President Obama suggested that businesses should lose valuable tax deductions for outsourcing jobs. He also suggested that those businesses who keep jobs in the U.S. will receive an even larger tax deduction. Romney, on the other hand, disagrees with this approach. He believes that the President’s approach does not understand that higher taxes will make corporations less competitive in overseas markets and hurt job growth in the U.S. His argument is that overseas sales support many jobs at home and an increased tax burden would result in a loss of tax revenue for the country because a company’s tax burden would grow too high forcing the company to take its business overseas. This backwards way of thinking is something that would not benefit working and middle class Americans by any stretch of the imagination. Sending jobs overseas hurts those out of work because it means that those who are unemployed are competing for fewer available jobs. It also hurts those currently employed because it means that at any given time an employer can take that job away and send it overseas at a drastically reduced wage.
Working and middle class Americans should support the candidate who outlines feasible ideas to bring jobs back and to protect the current jobs in America. Whichever candidate you prefer, don’t forget to vote on Tuesday, November 6, 2012; the future of our country depends on it.