Economy Takes Center Stage In S.C.

McCain, Thompson Resist Short-Term Stimulus, But Romney Expresses Support; McCain Also Unveils Long-Term Plan

(CBS/AP)  Concerns about the economy spread to the campaign trail in South Carolina Thursday as several Republican candidates talked about their plans for the economy and if they agree with calls in Washington for a short-term economic stimulus.

John McCain proposed a long-term economic plan that would lower the corporate income tax rate and provide a host of other tax breaks for business. "We will get through this rough patch, my friends," McCain told supporters.

The Republican presidential candidate proposed cutting the corporate tax rate to 25 percent from 35 percent. McCain, speaking to a rally under a tent in the rain, said that would expand the economy, creating jobs and opportunity.

He said his plan was "pro growth, less taxes and less spending." He contrasted it with "the Democrats' tired ideas of tax and spend."

Meanwhile, Fred Thompson made light of Federal Reserve Chairman Ben Bernanke's call for a quick economic stimulus Thursday and said it might be best to leave the economy alone for now.

"We're all concerned about the direction of the economy," said the former Tennessee senator. "We've had a good run, but we can't take growth for granted." He said "we've got to have a potential stimulus package on the table to be discussed if it would make sense to be used in short order, but we're not quite there yet."

And doing nothing might leave the economy stronger, he said.

"There's a case to be made for that," he said. "And it just requires strong heads at the table and not snap judgments, you know, by politicians on the road trying to think of something smart to say in 30 seconds."

McCain adviser Doug Holtz-Eakin suggested the Arizona senator also does not favor temporary relief at this time. "We haven't seen household declines in spending," he said.

McCain said, "It's not that I'm skeptical of short-term stimulus, I'm skeptical of any time you take taxpayers dollars without having a real good purpose and an object, Because somebody's got to pay it back.

"I want to see where that money's coming from," he added.

Among the other contenders in the South Carolina Republican primary Saturday, Mitt Romney said "it makes sense for Congress to take immediate action" and he'd have his own plan soon.

Bernanke today urged the government to adopt a plan quickly and make it temporary, and said "putting money into the hands of households and firms" would be more effective than measures such as making Bush's tax cuts permanent. President Bush also indicated support for a short-term boost.

McCain's economic plan would also establish a permanent research and development tax credit and allow tax breaks for equipment and technology investment. GOP rival Rudy Giuliani has also proposed cutting the corporate tax rate to 25 percent.

The McCain plan does not contain additional tax relief for individuals other than to renew a call to keep the expiring tax cuts passed by Congress in Bush's first term, a course also favored by others campaigning for the Republican nomination. "We've got to make these tax cuts permanent," McCain said.

"One of the reason we have the difficulties we do is that spending went out of control," McCain said.

McCain campaigned with Jack Kemp, a one-time star quarterback for the Buffalo Bills who represented New York in the House, served as housing secretary in the Reagan administration and was Bob Dole's vice presidential running mate in 1996. Kemp has long supported tax cuts as a way to stimulate business.

"John McCain knows we can prevent a recession," Kemp told the rally. "Everyone is talking about short-term stimulus. He wants long-term, pro-growth tax reform. I'm going to help him."

[homespunlady]

The PROBLEM with WAR is that it works BOTH ways.

UNLIKE WWII - IRAQ has been USED as a vehicle to SHIFT and CONCENTRATE WEALTH into the hands of a small elite WITHOUT the benefit of wealth FLOW DOWN into the lower sectors of our economy.

This has contributed to a GREATER wealth imbalance and subsequently a GREATER adverse economic impact.

This nation''s misuse of "EASY CREDIT" and the enticement of our nations MOST VULNERABLE (the poor and undereducated) INTO debt rather than a Massive EDUCATION of common sense economic principles for our citizens - especially the young is the stupidest SCANDAL of all!
It''s ON PAR with the acceptance of SLAVERY in my book - BOTH TAKE UNFAIR advantage WITHOUT allowing an acceptable avenue OUT..

[homespunlady]

Curse 914 You''re right about FDR but I have no problem with his methods.

It bought us time and shifted barely enough wealth back to allow many to a least start to SURVIVE a horrible economic time.

Would it have continued to do so Without the intervention of WWII?
I''m not sure.
THAT Gigantic upheaval was the icing on the cake to realign the wealth imbalance that created the Great Depression.

[ewinstedal]

Boost our Economy?
Have you ever really thought how much we pay out of our money in taxes?
Federal Income Tax, State Tax, Sales Tax, Work Tax. and the list goes on!
We have about 40 cents on the $1.00 that we can spend after taxes! It would help to do away with some of the taxes!
Lower Gas Prices & Fuel Prices what would help to lower other prices including Food ect.
I work in Advertising and the People dose not want to advertise because purchases are down.
Due to GAS Prices being so high it takes all we make to pay out House Payment, Utilites, Gas, Gro, and Pay Taxes, Leaving NO money for extras.
It all bounces to one thing LOWER GAS & FUEL and the rest will follow.
There is no Middle Class any more we are now the WORKING POOR!

[homespunlady]

Too many years ago I had an insight watching a movie called Tron. The movie was a bit hokey but in it there was a part about the flow of energy and for some reason I related it to the economy (probably was taking an econ class at the time).

An economy isn''t as dependent on the AMOUNT of currency except as to how it affects the FLOW of that money.

If that flow is DIVERTED and HOARDED by a small sector then it is UNAVAILABLE to the REMAINING sectors. This can cause all sorts of problems.

To create ADDITIONAL amounts simply DILUTES it''s effectiveness - similar to additional stock issues dilute the value of previous issues of a corporation and makes each subsequent addition LESS EFFECTIVE in providing the needed effect on those that have the DILUTED remainder.

That''s where this nation is at NOW.
Our currency has been constricted and hoarded.

The remainder is DILUTED and INEFFECTIVE in carrying the needed FLOW of wealth to the remainder BEYOND the CONSTRICTION.

NO WONDER there''s a problem.

I suspect the Fed Chairman''s shaky voice was More than Stage Fright.
It was Enlightening watching the WHOLE meeting on CSPAN AFTER the chosen sound bytes given by the MSM.

My impression - we''re in deep excrement folks.

[antoniof123]

It is coming the storm to end all storms. They sat by and had their war of fancy now they still want to keep it but they don''t want to pay for it. Big Corporations, Big false religion, big fools is what I say.

The Republican answer for everything cut corporate taxes that should do it.

It used to be the Republicans really did have some good ideas but once they jumped into bed with big religion and big business they stopped having them and now most of their ideas are a joke to America. Cut taxes even further this is by and far the dumbest thing they keep spouting off at. during time of war you raise taxes to pay for it. But what do you expect from average students in school who''s daddies have the money to buy grades for.

[watcher269-2009]

Wow - Another Clinton winning the Presidential election on the phrase

"It''s the Economy STUPID!"

The Republicans are Conservative like Sen. Craig is Heterosexual.

[samthetvcat]

Just from the left point of view though - I think the most fiscally responsible move one could make would be to look at the cost benefits of continuing the Iraq war . . . how much are we spending there and how much are we getting in return?

Nothing would stimulate the economy more than curbing spending in Iraq. Hard to justify not supporting a stimulus package at home when you''re spending high on the hog abroad . . .

[samthetvcat]

"I wish now that I had paid attention in Econ.101. Those naps were nice but now I could use some of that information. I''ll bet George wishes the same thing."
Posted by Element51

I used to skim my roommate''s macroeconomics textbooks for fun, and it sounded like a nation''s economy is too complex to know for sure whether or not stimulus packages such as tax rebates will create growth in the economy. Like the textbook would say that history has shown that when rebates were given, they tend to work when factors x and y were going up and down but only if factor z was not present. Like it seemed superconfusing with no straight answer (?)

Maybe this isn''t an accurate way to look at it, but I''m figuring that giving all of us some extra cash in the hopes that it''ll lead to growth might be like an individual choosing to spend money on a new suit, fresh resumes, and an interview coach in the hopes that it''ll ultimately lead to a higher paying job (?)

I wonder whether maybe the government should do a quick survey first to find out where ppl would likely spend their extra $...maybe if we were to all spend it on imported products like gas, home heating oil, and imported Chinese goods it would just make the situation worse (?) Or maybe the goverment should give us advice on what purchases would be good for the economy - like eating at restaurants and getting pedicures. I''m down for that :D

[element51]

I wish now that I had paid attention in Econ.101. Those naps were nice but now I could use some of that information. I''ll bet George wishes the same thing.

[element51]

homespunlady....Very, very well stated young lady. You may tick some people off but sometimes the truth does that. You go girl!

[samthetvcat]

""Economy Takes Center Stage In S.C."

*************************
What?? No abortion or gay bashing. These can''''t be real Republicans."

Posted by kansas1946

LOL I guess that''s what I was sort of questioning too :o :D

[samthetvcat]

"[Fred Thompson] said "we''ve got to have a potential stimulus package on the table to be discussed if it would make sense to be used in short order, but we''re not quite there yet."

And doing nothing might leave the economy stronger, he said."

Are ppl digging this kind of talk in SC? Like are they THAT different that they think this way? Or were they thinking they were getting a more economically conservative Huckabee not realizing he would be THIS laissez-faire?

I''m wondering whether evangelicals''ll break at the last minute to put Huckabee over the top to ensure they maintain their sway or whether they''re going to stay with Thompson no matter what in the (long-shot) hopes that ppl will flock to Thompson at the last minute (?)

[kansas1946]

"Economy Takes Center Stage In S.C."

*************************
What?? No abortion or gay bashing. These can''t be real Republicans.

[mcv57]

"John McCain knows we can prevent a recession," Kemp told the rally. "Everyone is talking about short-term stimulus. He wants long-term, pro-growth tax reform. I''m going to help him."

When a politician blames government spending out of the control, he is doing nothing more than bashing the republican policy. The Reaganomics era only mirrored the Nazi regime economic plan - and it borrowed time for the American economy. The Bushwacker has created his own war and is following suit (military spending). But this time its not working, government and corporate corruption (particularly the oil industry) is taking its toll, and the piper wants to get his due: Chaos.

[micma-2009]

It doesn''t really matter which Republican wins in S.C. All any of them have to offer is a third Bush term.

[homespunlady]

Where''s there an FDR when we need him???

[homespunlady]

Here''s a NOVEL IDEA - CREATE WELL PAYING JOBS!!!


Straight to Congress from the people who know - from the LAST GREAT DEPRESSION - presenting - THE NEW DEAL!!

Our national infrastructures is so DEPLORABLE that countries like URUGUAY refer to having "PUBLIC RESTROOMS like the MORE CIVILIZED PARTS of the US"!!
Sheesh - what we''ve been calling the 3rd world is calling the US UNCIVILIZED!!

What''s it going to take - International Relief Agencies advertising to "save the children" in the US AGAIN?? Remember APPALACHIAN POVERTY ads?

Has this nation REALLY FORGOTTEN the POVERTY and inequity in this nation we fought against in the 60''s?

Have the words and FISCAL deeds of Great Leaders such as MLK, JFK and Bobby Kennedy been BURIED by the GREEDY ELITE SO MUCH that the people of this nation cannot recall them?

This Nation NEEDS UPGRADED INFRASTRUCTURE! We DON"T need to SELL OFF what we have left of it to FOREIGN CORPORATIONS that will DRAIN it further while pursuing PROFIT for themselves.

This nation needs WELL-PAYING JOBS not "service sector" READ SERVANT jobs but jobs that CREATE esteem building ASSETS and a rising standard of living for the MAJORITY rather than SERVILE COMPLIANCE and acceptance of an ever declining standard of living.

[frankbowers]

Why do the big and small business need a tax cut from 35% to 25% (this will put us so deep in debt the small person will be paying for an eternity) how would this help the working and the working poor the only thing this would help is the greed of those who do not need it. The companies will not be cutting their prices just look back and everthing has continued to increase in price since the big tax cut by gw in the beginning I think McCain is looking for the companies to vote, and since when did they reg. to vote. The bes of good byes Frank Bowers in Austin, TX

[pepperwood2]

The New Green Machine - Happy days are here again!

"If you can go to work, come back, plug it in, get up the next day and do that every day and not burn a drop of gasoline," Furia suggested. "Everything else follows."

The manufacturer estimates this technology will add another $8,500 to the sticker price of any car, but claims it will pay for itself in three to five years when you factor in the gasoline savings.
Wow...Groovy....Socko!

Wait until PPL finds out then they can double the rate charged for electricity to Mr. & Mrs. America. Aw shucks they''''re doing that now. You still may be able to pay for it in up to 10 yrs. right??

But look new disposal batteries, new technology they will probably be guaranteed for 50 years?? Right?? Aw Shuckins no guarantees or warranties all you do is dispose of them along the road like we do with all our rechargeable batteries with the new technologies.

Aw More Shuckins.....you need to pay for having them disposed at a special recycling point.

Why can''''t we employ more battery powered equipment for use in the home to save big time. Aw drat....the power grid during the hot summer cannot accommodate the extra electricity it takes to run AC & all our battery powered accomodations. Sounds Like another Green Team IDeeeaarr.

Fool me once shame on me. Fool me twice Just get used to the idea. Right!

Double Drat I can hear the Clintons & Al Gore CACKLING all the way to the Bank.

[homespunlady]

I just HAVE to do it - I''ve been ticking off people all day today.

To all of you that laughed at my warnings, and in particular the contractor that bragged he was hiring illegals to build a "residential development" in Nevada and making hundreds of thousands and didn''t care about my "crazy ideas" concerning what was coming - I TOLD YOU SO! WHO''S the FOOL now?

For the FOOLS that think they can get OUT of this HUGE FISCAL crisis by CUTTING MORE "TAXES" for the people that have PUT US IN THIS MESS - there''s NO HOPE for your common sense and sanity is there?

BTW although I think it''s too bitter of a pill for Americans to swallow; there NEEDS TO BE DRASTIC STRUCTURAL CHANGES to our economic system.
RON PAUL may be made fun of by fools but the ECONOMISTS RESPECT HIM.

Putting a Band-Aid on a Severed limb is too little too late but I foresee Congress doing exactly that before they WAKEUP smell the stench of the pervasive manipulation and FINALLY find some brass ones to JUST SAY NO to the lopsided WEALTH SHIFTING currently being foisted on this nation. The tipping point was probably PASSED for a depression in 2006.
When the assets and wealth of a nation becomes CONCENTRATED into the hands of SO FEW that becomes the INEVITABLE RESULT!
NOBODY sees that elephant in the room - instead they blame the guy with a mortgage rather than the OVERALL SHIFT and compression.

NOT PSYCHIC, JUST FACT!