http://www.politico.com/story/2015/01/barack-obama-economics-114793.html
As he did with the State of Union, Barack Obama has slowly been providing previews to his budget for 2015. In the past week, the latest details emerged: a one-time 14% tax on foreign earnings and a 19% yax on futureu corporate profits overseas to help pay for half a billion in infrastructure spending over six years. Obama has been spreading his message of "middle class economics" since he became president, but has increased his intensity since his parties' embarrassment in the November elections. Most of Obama's proposals have been met with swift opposition from the Republican Congress, especially his wish to end the sequester.
I think middle class economics are the best way to help the US economy. Although the economy has drastically improved over the last 5 years, wages have remained stagnant. It is important middle class families are helped because they have received very few benefits of the economic recovery.
What do you think is the most effective way to improve the US economy? :"Top down" economics or "middle class" economics?
4 comments:
I think Obama budget plan have many parts that contradict themselves. He wants to make 2 years community college free ride for students to give American equal opportunity to education but also want to tax student loan. This does not make sense. I agree with his plan to raise non-defense discretionary spending budget up. However, to give tax credits to middle class also is a little overdo. I oppose spending beyond ones' mean especially when there's a huge debt for many generations to pay ahead.
I do not believe trickle down economics is the way to go. In order to prevent a larger population of unskilled workers due to the rich corporations creating more of these jobs, government must invest on middle class skills and capacities. In addition, safety nets are needed due to the booms and recessions of our capitalist economy.
In Obama's new budget plan, new tax breaks for the middle class, including a tax credit for working spouses and a tripling of the child care tax credit, paid for by higher taxes on the wealthy are all proposed. However according to this article this "kind of budget Obama prefers now: the “we-dare-you-to-oppose-this” kind, filled with politically attractive spending increases and tax breaks — and a vision of how cool things could be if Republicans would just stop cutting spending all the time." It will be interesting to see how this plan will get through the Republican Congress.
As long as these corporations are creating jobs to potentially give to middle class workers, the economy will strengthen in the future. The middle class could be assisted with these jobs, but in order for them to be productive and consistently working, there needs to be companies willing to higher more people.
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