The Economy's Future: The Candidates' Plans

Some say that the U.S. economy is teetering on the edge of another Great Depression. Find out what the presidential candidates plan to do about it.

Internet lore would have Chuck Norris roundhouse kick the U.S. economy back into shape. Unfortunately, reality doesn't allow for that. Instead, we'll have to rely on our new president and his administration to get things back in shape.

Obamanomics

Obama wants to address flat U.S. wage growth coupled with rising prices and an unfair distribution of the tax burden. His economic plan would foster job and wage growth by providing government funding to expand the clean energy sector, promote research and development, and support transportation infrastructure projects. Small businesses would get a helping hand by way of tax incentives.  

Obama would also like to foster the expansion of unions, paid leave programs, and the availability of flexible work schedules. He believes an increase to the minimum wage would be in order, as well, so that all American workers are capable of providing for basic living needs.

McCain's tax candy cane

McCain's economic policy incorporates immediate financial relief to American families, and a longer-term focus on balancing the budget and reforming Social Security, Medicaid, and Medicare. The "immediate relief" would be provided by a summer gas tax holiday, and the elimination of the sugar-based ethanol tax, which will potentially improve competition and lower gas prices at the pump. McCain also envisions supporting small business by removing expensive mandates, such as healthcare requirements, and lowering their taxes. Notably, McCain argues for giving each American household $5,000 to pay for healthcare.

Like Obama, McCain supports expansion of paid leave programs and flexible work schedules.

No Holds Barred

Bob Barr stands behind the concept of radically reduced government spending. The Libertarian candidate would slash welfare and business subsidies, reduce the military spending, and eliminate pork barrel spending. Wasteful programs that have no constitutional basis would be terminated. In Barr's world, the free market should be allowed to govern the energy sector, so that consumer choice can naturally drive prices lower. Barr would also address rising healthcare costs by removing regulations and reforming Medicare and Medicaid.   

Simpler taxes on horizon

All three candidates support a simplified tax system. Obama, citing a discrepancy in wealth distribution, wants to lower taxes for low-income seniors and middle class households. McCain would phase out the alternative minimum tax, keep the lower tax rates for dividends and capital gains, and ban all taxes on Internet and cell phone usage. Barr's tax policy is more of a question mark. He argues for lower taxes across the board, but leaves the door open as to how this will be achieved. Flat income taxes, or a consumption tax in lieu of all income taxes, are two options.

As for Chuck Norris, he's already stated his support of the McCain/Palin ticket. But whichever candidate ends up at the helm will have some tough economic policy work ahead.