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The Daily Cardinal Est. 1892
Tuesday, June 25, 2024

Obama's concrete economic plan better than Romney's vague one

The bomb that hit the economy in 2008 left everyone with lighter pockets. The government took action and it appeared as though the worst of it was over; the situation soon took a turn for the worst.

 Now with the 2012 election right around the corner, President Barack Obama and former Gov. Mitt Romney square off to see who the country will pick to face the bleak economic outlook. With Europeans searching through trash bins for their next meal, the government trillions of dollars in debt and a frozen economic recovery, this election will be pivotal in the effort of evading a second economic disaster.

The country needs a MacGyver to help us diffuse the ticking time bomb that is our economy. Sure, Mitt Romney may have the looks, but we need a man than can do his own stunts; that man being Obama.  

Obama has shown his abilities as president through the recovery efforts at the beginning of his term in office. Many that antagonize his presidency only focus on the fact that the economy is stagnant at this moment. I’m not sure what people think a president can do but I can say for sure that he can’t force companies to create jobs, nor can he magically cut taxes while keeping benefits like Medicare, welfare, and most important to us, financial aid for education. The man has done a lot to keep the country afloat and is met by a torrent of disapproval from the masses saying that he isn’t doing enough. Obama’s economic plan for 2012 is to focus on increasing consumer confidence. In other words, the hope is to increase demand for goods rather than increasing supply. His plan is to keep taxes the same for those making less than $250,000 a year and increase them for those who make more. He also hopes to implement a motivational compensation for companies that hire more workers. His plan is well composed and specific in detail and direction, which is what the country needs.

The same cannot be said for Romney. Romney hopes to use an economic strategy similar to that of Ronald Reagan. “Reaganomics,” as it is humorously referred to nowadays, entails policies that favor supply-side economic stimulation. This means tax-cuts for large businesses, repealing of foreign trade tariffs and other strategies that would theoretically lure companies to invest in the United States, therefore creating more jobs. From the surface, Romney appears to have a solid economic strategy; the situation becomes foggy under closer inspection. Romney’s plan is very vague on paper. He promises to cut taxes across the board and to cap federal spending but fails to provide specifics on how he plans to do such things. His focus on supply-side economics is regressive in theory as well; large companies do not need more money, it’s already spouting out of their ears. What businesses need is demand for their goods, which means tax cuts for the consumers. He also promised his tax cuts would not add to the national debt. However, he would need to reduce tax deductions in order to keep the tax cuts from adding to the deficit, which if you bother to think about it, renders the tax cuts useless.  

The stage is set and it is our responsibility to pick the right person, the MacGyver, to diffuse the economic situation with only an economic plan as his duct tape and a room full of congressman as his army knife. Will it be the blue wire, or the red? Before you vote, make sure you know what you’re voting for.

Please send all feedback to opinion@dailycardinal.com.

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