Economic Problems

http://www.youtube.com/watch?v=phEPwzptMes&feature=related

We hear a lot of people say the economy is bad for the ordinary family. We also hear a lot of people say the economy overall is quite strong. Both sides have valid facts that point to their arguments.

I believe, essentially, 95% of our current economic problems can be lumped into the following two categories:

1) The American job market has changed. If it is more competitive to do business elsewhere in the world, businesses are taking that opportunity. That means many jobs are leaving this country. It is simply better for them to shift their operations and their facilities (jobs) to parts of the world that do not have either the 1st or 2nd highest tax rates.

This is the wave of the future...globalization is upon us. If we were to lock ourselves away from this idea of free trade, and not participate in the global economy, we would be doing ourselves more harm than good. We would be closing many markets for ourselves that want our products and the opportunity to buy them. We would lose out on many opportunities to do business across the world. Corporations around the world would innovate due to increased competition (which America would no longer feel), leaving America trapped in the past in terms of the means to do business and economic capabilities.

How do we combat this?! Cut the corporate tax rates. Both candidates are proposing to do this. As noted in a previous post, McCain basically wants to cut taxes for corporate operations by reducing the corporate tax rate to 25%...Obama basically wants to cut taxes by rewarding corporate employment, reducing the tax rate by 1% taxable income for companies that meet certain standards (such as percentage of employees in America, benefits given to the employees, etc...in short, providing good jobs). The candidates, in my opinion, should combine their plans...give a 5% tax rate cut to all corporations, and award an additional 5% if they meet certain credentials. McCain's plan would have more of an impact to corporations in the short-term future, so I think McCain has a slight edge in this category.

2) American healthcare, groceries, and most important of all, energy costs, are rising. We are in the middle of the greatest transfer of wealth of all time, to many countries that do not like us, for their energy. We need to figure out how to promote energy development here in the United States. Doing so will not only create jobs and reduce energy costs here at home, but will reduce the cost of our food as well.

Neither candidiate is proposing a way to solve the energy crisis within a reasonable amount of time. Both are throwing a relatively measly amount of money at the problem and waiting for the American economy to work its magic. I am perfectly fine with this approach...but since neither candidate is solving the problem themselves, it is important to note that both candidates support the same sources of energy, but McCain brings the added benefit of supporting increased drilling in currently restricted areas and very outspoken support of nuclear energy. The candidates are even, but McCain gives us a bonus.

Just some thoughts...on both of these issues...McCain has a slight advantage in all, in my opinion...

I think, after reading all of the posts on this blog about the economy and taxes, it should be clear what I think...now I want to dive into healthcare (which I am not familiar with, really) and immigration.

Until we meet again, goodbye!