Economy in a Democrats’ Mind

When businesses are booming, the Republicans dominate.  Yet, when businesses are dying, the Democrats get the throne.

Why is this so?  And now that the US economy is ailing, will the Mighty “D’s” bring home the bacon?  Economists believe they will do so.  Democrats are geared towards the progressive economic philosophy.  To them, it is the government’s duty to monitor and regulate the economy.  It is their belief that government spending, e.g. deficit spending sets the economy as well as the stock market in a better form.  Hence, growth and a booming economy are within easy reach.

Of course, higher taxes may result from policies arising from such a stance.  The 2008 Presidential candidate of the Democratic coalition is a Robinhood in the making – he has plans to take from the rich and give to the poor.  He proposes an increase on tax rates padded to the wealthy and on capital gains.

Tax as an Answer to Economic Crisis

The majority believes that high capital gains tax hinders investors from betting on new business ventures.  However, some are inclined to think otherwise; they see it instead as an opportunity for small-scale businesses to reap higher profits since equity investors do not affect them.  Only the rich get targeted!

During the Clinton Administration in the ‘90s, taxes were raised and mankind had its biggest economic boom!   On the other hand, during the Hoover Administration, the rich were highly taxed but that created modern industrial history’s worst depression.

Raising or lowering taxes is actually not the gauge for economic growth or economic downturn.  Equilibrium is the key – a balanced policy wherein initiatives promote economic growth (i.e. encourage capital investment) even as they benefit the workers on the side.

NAFTA Out of the Table

Moving right along, the Democrats’ main man announced his intention to strengthen the nations’ labor and environmental safeguards by adjusting the trade policy between U.S. and China.  Furthermore, he says he wants to amend the North American Free Trade Agreement (NAFTA) because this contract does not put food on the American’s table.  Trade policies should protect the working class instead of being riddled with perks to be enjoyed only by big corporations.

Democrats champion the working class!  Democrats implement the Marxist-style policies!  Democrats want a proper distribution of wealth!  But would these be enough to bring light to America’s dark economic condition?  Would these be enough to cause a 360-degree turn and turn economic depression into a resurrection?

Based on past election turn-outs, whenever the economy becomes sour, the candidate from the incumbent party does not do well in the polls.  Remember Ronald Reagan’s overwhelming win over Jimmy Carter in the ‘80s or Bill Clinton’s victory over George H.W.Bush in the ‘90s.  Does this mean that the battle has been over long before it has begun?  Well, no party dreams of having a gloomy economy.  It is up to the voters to weigh the pros and cons of every economic measure set.  Who will lift the shrinking Titanic?  That is for the Americans to decide.

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