John McCain’s Economic Plan
While the democrats continue to fight for a candidate, the republican presidential candidate has taken his free time to confront the issues our great nation is facing. The US recession is a fear that is becoming a reality and most will agree that the fear of if and when is now shifting its focus on how we are going to get out of a recession. Well, John McCain has begun to develop his resolution for the US economic problem. McCain’s new plan covers areas that take on a diverse approach from a Republican Candidate. But were in a time were Republicans and Democrats alike are adopting values that aren’t solely Republican or Democratic. Our country and political system is ever evolving and our political parties must evolve with the times so their decisions benefit our great country.
The McCain economic revival plan focuses on a few key categories which will cut deficits and allow our countries great corporations an opportunity to reinvest their earnings within the company. A corporate tax brake of 10% will give corporations across the country a significant amount of retained revenues in which they can reinvest within their organization.
McCain has also proposed other tax breaks within his plans to lift our country out of the recession. A focal point of his plan will concentrate on scraping discretionary spending. The plan to freeze discretionary spending for one year will save a significant amount of cash while giving us an opportunity to analyze which plans are necessary or unnecessary.
Another important aspect of the plan will focus on Medicare. The changes will affect the wealthy seniors who do not have difficulty affording their prescription drugs. The proposed plan will increase premiums on the wealthy class of seniors in the Prescription Drug Program just as the wealthy classes of seniors are required to pay higher premiums for Medicare Part B. McCain feels that “those who can afford to buy their own prescription drugs should be expected to do so.” McCain does not agree that taxpayers are paying for the medications of the Bill Gates’ and Warren Buffet’s of the world.
How will these tax cuts and breaks be paid for? Which categories will cut deficits? Thanks.
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"A corporate tax brake of 10% will give corporations across the country a significant amount of retained revenues in which they can reinvest within their organization."
The misspelling doesn't help your argument any, but the bigger problem is that our economy isn't suffering from a shortage of retained earnings.
The problem is a shortage of consumer demand: average Americans are deep in debt, in danger of losing their jobs and their pay isn't keeping pace with increase in their productivity.
More Reaganomics won't work.
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Our economy is suffering from the government's determination to entrench debt as an inherent quality of the American Dream.
The personal savings rate of this country is now negative; a culmination of a long-term decline in the savings rate from a post WWII level of 24%.
Americans are constantly encouraged to take more debt; whether it be to take advantage of artificially low credit levels propagated by the Federal Reserve, legislation and support from both parties that every American should own their own home, no matter if they can actually afford it or not, to the continual drainings of our private sector by all-knowing government leaders.
You say that pay isn't increasing with productivity? Real hourly compensation has increased 22% for workers in the last decade. Productivity of the manufacturing sector, the most prolific advancer of technology, has only increased by 11% in the last 10 years.
We don't need Reaganomics to work. We need to stop filling Americans will economically illiterate propaganda and let real classic economics work, just like it always does.
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