Voters Demand Answers On Ailing Economy

Deterioration Of Economy Threatens To Overtake Candidates Proposals On Other Issues

(AP)  The economy is deteriorating so quickly and dramatically that it threatens to overtake many proposals the presidential candidates have been offering for months.

Democrat Barack Obama and Republican John McCain are suggesting tax, spending and regulatory plans in response to soaring gasoline prices, a home lending crisis and other woes hitting consumers. But it is far from clear that their ideas can seriously improve matters or even pay for themselves without expanding the deficit, as the candidates claim.

A year ago, the Iraq war and terrorism dominated the campaign, and that was reflected in candidates' rhetoric and poll results. Obama's opposition to the war helped propel him to the Democratic nomination, while McCain's national security credentials swayed some GOP voters.

The landscape has shifted. New problems are cropping up almost daily, and voters will be demanding answers.

"I don't think either candidate has really spelled out how they would get us out of the mess we're in," said Rea S. Hederman Jr., who tracks the economy and campaign for the conservative Heritage Foundation.

Inflation has rarely been mentioned in the presidential contest, but that seems likely to change soon. The government reported Wednesday that consumer prices rose in June at the second fastest pace in 26 years.

Bank failures suddenly are front-page news as well. The FBI is looking into possible fraud related to home loans made by IndyMac Bancorp Inc., which was taken over Friday by the FDIC.

Polls show that voters are clearly more concerned about the economy and gas prices than about the Iraq war and national security. McCain and Obama undoubtedly will return to these issues and offer new proposals, but perhaps the voters' chief question should be: Can they really help?

"The president doesn't have that much impact on the short-run fluctuations of the economy," said Alan D. Viard, an economist at the right-of-center American Enterprise Institute. The candidates will continue to talk about plans to help ease Americans' pain, he said, but voters should be wary.

For example, Viard said, McCain's proposal to temporarily suspend the federal tax on gasoline would do little more than encourage people to keep driving instead of conserving fuel. Obama has called McCain's plan a gimmick.

An Associated Press-Yahoo News poll conducted in June found that voters give Obama a slight edge over McCain in handling economic matters.

Democrats love to note that McCain said in December, "the issue of economics is not something I've understood as well as I should." And last week, McCain had to cut ties with a top economic adviser - former Sen. Phil Gramm - when Gramm called Americans a nation of "whiners" about the economy.

The two candidates offer fundamentally different approaches to the economy. McCain wants to cut taxes at virtually all income levels, although high-earners would reap the biggest benefits. Obama would raise taxes on the wealthy and pour more spending into subsidies of education, health care and other programs.

Obama says all his programs would be paid for with tax hikes or savings elsewhere. McCain says he would balance the federal budget by 2013. Economists are dubious of both claims.

The candidates' specific non-health tax proposals would reduce tax revenues by $3.6 trillion in McCain's case, and $2.7 trillion in Obama's, over the next 10 years, says the Tax Policy Institute, a joint venture of the liberal-leaning Brookings Institution and Urban Institute.

"Including interest, the tax cuts would increase the national debt by $4.3 trillion (McCain) or $3.3 trillion (Obama) by the end of 2018," the institute said.

The candidates diverge on tax policies. McCain would continue President Bush's first-term tax cuts (which he initially opposed); increase the tax exemption for those with dependents; reduce the corporate income tax; exempt the great majority of estates from the estate tax; and eliminate the gas tax for this summer.

Obama would end the Bush tax cuts for high earners; eliminate income taxes for elderly people making less than $50,000 a year; reduce taxes on people making less than $75,000 a year; keep the estate tax on estates worth more than $3.5 million; and raise the capital gains tax.

Obama calls for a "second stimulus" package of tax rebates amounting to less than a third of the $168 billion package approved last year. "The sooner we can get money into people's pockets, the sooner that we can stabilize the housing market," Obama said last week.

McCain says he would consider a stimulus package.

On Social Security, Obama calls for a new payroll tax on annual incomes exceeding $250,000. McCain says he would place "everything on the table" in discussions of how to improve the program's long-term viability. Critics say the possibilities would include partial privatization of Social Security accounts, which Obama opposes.

Obama and McCain routinely criticize each other's economic plans, although not always with precision. McCain has said Obama's call for a higher capital gains tax would hurt those with stocks or mutual funds in retirement plans. But most retirement accounts are not subject to the tax.

McCain supporters, meanwhile, say Obama underestimates the government savings that McCain's plan would stimulate with proposals such as ending "earmarks" in spending bills and rooting out waste and duplication.

Voters seem likely to press the two candidates for more details in the coming weeks.

"There has been a great deal of empathy and concern from the campaigns, but not a lot of details about how to solve the problems," said Hederman of the Heritage Foundation. "It shows how complicated things are that neither campaign has really laid out how they would handle the economy if they were president."

[splainin2do]

Voters demand answers on economy. Network news responds with:

New Yorker Covers
Polls, Polls, Polls
Jesse Jackson
Bernie Mac
Hillary Hair Parting Change
McCain''s barbecue sauce and cookie recipes
Surrogate, surrogate, surrogate

At least when they covered John Edwad''s haircut it cvost more than a tank of gas. Not any more.

[raoul12-2009]

McCain graduated from the US Naval Academy 894th in a class of 899. He wrecked five jets before they finally got rid of him. Obviously he is not the brightest bulb on the tree. He was shot down by an out-of-date Soviet missile by men with no experience in anti-aircraft warfare because he did not follow the rules of evasion taught at the Academy. Let''s just say the man has only one oar in the water.

He disses two in five people on the face of the earth by referring to all Asians as %u201CGooks.%u201D He may be viewed as a %u201Chero,%u201D but I don%u2019t think being shot down qualifies him for the job of president.

[raoul12-2009]

IF YOU LIKE THIS ECONOMY;

IF YOU LIKE THIS NEVER-ENDING WAR;

IF YOU LIKED HIS VOTE AGAINST A GI BILL FOR IRAQ VETS;

IF LIKE PAYING HIGH GAS PRICES;

IF LIKE THE TAX BREAKS FOR THE RICH;

IF YOU CAN''T WAIT TO INVADE IRAN;

IF YOU LIKE HIGH UNEMPLOYMENT;

IF YOU LIKE A PRESIDENT WHO VOTED AGAINST EQUAL PAY FOR WOMEN;

IF YOU LIKE A PRESIDENT WHO VOTED AGAINST MATERNITY LEAVE FOR WOMEN;

IF YOU LOOK FORWARD TO THE END OF ROE V. WADE;

IF YOU LIKE THE UNFAIR TRADE POLICIES THAT SEND JOBS AND TECHNOLOGY OVERSEAS;

IF YOU LIKE A GOVERNMENT THAT PRACTICES TORTURE;

IF YOU LIKE A GOVERNMENT THAT SPIES ON ITS OWN CITIZEN;

IF YOU LIKE THE FACT THAT THE US IS ONE OF THE MOST REVILED NATIONS ON THE PLANET, THEN YOU''LL JUST LOVE McCAIN.

[raoul12-2009]

IF YOU LIKE THIS ECONOMY;

IF YOU LIKE THIS NEVER-ENDING WAR;

IF YOU LIKED HIS VOTE AGAINST A GI BILL FOR IRAQ VETS;

IF LIKE PAYING HIGH GAS PRICES;

IF LIKE THE TAX BREAKS FOR THE RICH;

IF YOU CAN''T WAIT TO INVADE IRAN;

IF YOU LIKE HIGH UNEMPLOYMENT;

IF YOU LIKE A PRESIDENT WHO VOTED AGAINST EQUAL PAY FOR WOMEN;

IF YOU LIKE A PRESIDENT WHO VOTED AGAINST MATERNITY LEAVE FOR WOMEN;

IF YOU LOOK FORWARD TO THE END OF ROE V. WADE;

IF YOU LIKE THE UNFAIR TRADE POLICIES THAT SEND JOBS AND TECHNOLOGY OVERSEAS;

IF YOU LIKE A GOVERNMENT THAT PRACTICES TORTURE;

IF YOU LIKE A GOVERNMENT THAT SPIES ON ITS OWN CITIZEN;

IF YOU LIKE THE FACT THAT THE US IS ONE OF THE MOST REVILED NATIONS ON THE PLANET, THEN YOU''LL JUST LOVE McCAIN.

[liberalme]

I know Tony wouldn''''t be bothered or even surprised by this, but I simply had to express my outrage over this to at all you NObama worshipping un-Americans POS.
Posted by JonGood65 at 10:36 AM : Jul 17, 2008

What do you do? Save this stuff then cut and paste it on every story you want to post on?

I answered this for you last night---With respect to Tony Snow---he was NOT better than Russert.

[jongood65]

Americans, let us be honest about this:

Was the country [our country] in this mess when Clinton left office???????

Think before you cast your vote in November.
Posted by nikosk1 at 11:20 AM : Jul 17, 2008
=================

By this are you saying that Bill Clinton was as liberal as this @1 most left wing pinko in the US Senate the Democrats are offering today??

Or, might you be telling them to think about the fact Congress was lead by the Republicans through the majority of Bill Clinton''s term in the White House??

For one of the clearest things I can remember about Bill Clinton leaving office was my portfolio being a bit too heavily invested in .COM and Enron stocks.

[mycommentspg]

If you look at each candidate in a realistic manner without emotions, it is very easy to determine which should be elected in November. http://mycommentspage.blogspot.com/

[jongood65]

If anyone ever doubts a left wing bias exists in this so called "mainstream" media just think about this:

Last month a liberal (Tim Russert), who had nothing more to his resume than to have once been a speech writer for some yankee (Dimbulb) Senator who died some years back, and the remainder merely working as a talking head for NBC passed away, and CBS had no less than two and maybe three boards dedicated to this man.

Yet today we bury a real American conservative (Tony Snow), who most recently served as the White House Press Secretary, prior to which he served as a speech writer for President Bush #41, in between which he worked as a talking head on both TV and radio.

Yet CBS has offered not so much as a single word, much less a whole board about this outstanding Americans passing.

I know Tony wouldn''t be bothered or even surprised by this, but I simply had to express my outrage over this to at all you NObama worshipping un-Americans POS.

[jongood65]

If I was making over $227K, I''d be glad to pay more in taxes for the privilege to live in this great (and can be greater) country.
Posted by Hasher47 at 10:07 AM : Jul 17, 2008
=====================

What an easy statement to offer when you obviously aren''t making this kind of money.

Just wait until you are, and let''s hear you offer the same, while every other local, state, and federal government jackal is picking your bones clean with all these increased taxes and regulatory fees you are forced to pay at this level.

[hasher47]

If I was making over $227K, I''d be glad to pay more in taxes for the privilege to live in this great (and can be greater) country.

[hasher47]

Ref: http://money.cnn.com/2008/06/11/news/economy/candidates_taxproposals_tpc/index.htm
WHAT THEY''LL DO TO YOUR TAX BILL
McCain and Obama want to change the bottom-line effects of the tax code. Here''s a dollars-and-cents breakdown of what their plans could mean for you.

McCain: The average taxpayer in every income group would see a lower tax bill, but high-income taxpayers would benefit more than everyone else.
Obama: High-income taxpayers would pay more in taxes [$227K and up), while everyone else''s tax bill would be reduced. Those who benefit the most - in terms of reducing their taxes as a percentage of after-tax income - are in the lowest income groups.

[indyvet66]

John McCain wisely opposed President Bush%u2019s tax cuts for the wealthy in 2000. McCain now endorses the Bush tax plan that has failed the middle and working classes and added $3 Trillion to our national debt since 2001. When he opposed Bush%u2019s tax cuts back in 2001, McCain accurately said %u201CWe had an opportunity to provide much more tax relief to millions of hard-working Americans. I cannot in good conscience support a tax cut in which so many of the benefits go to the most fortunate among us, at the expense of middle-class Americans who most need tax relief.%u201D

Now, in 2008, John McCain wants to make those tax cuts permanent. That is just political pandering to get votes. And it is very bad economic policy.

If you think President Bush has done a good job with the economy, then John McCain is your man.

Are you better off today than you were 8 years ago?

If not, then vote for Barack Obama in 2008.

[indyvet66]

McCain has admitted that he does not know how to use a personal computer and does not use the Internet. Excuse me. Did I hear that right? That%u2019s not the person you want leading America in the 21st century technology-centric world.

If you think President Bush has done a good job with the economy, then John McCain is your man.

Are you better off today than you were 8 years ago?

If not, then I suggest that you vote for Barack Obama in 2008.

[indyvet66]

Are you better off today than you were 8 years ago?

Senator McCain holds Antiquated World & Economic Views. McCain thinks that the %u201CGlobal War on Terrorism%u201D is our biggest threat. He is wrong. The biggest threat is economic globalization and competition %u2013 for target markets and scarce resources such as food and oil. For example, China has 300 million Middle Class consumers and another billion people living in poverty. China is a monumental consumption and production engine with which we are in direct competition. That%u2019s our primary challenge and opportunity of the 21st century that is adversely impacting and threatening every American and rapidly eroding our way of life.

If you think President Bush has done a good job with the economy, then John McCain is your man.

Are you better off today than you were 8 years ago?

If not, then I suggest that you vote for Barack Obama in 2008.

[indyvet66]

The problem with McCain%u2019s economic plan is that it is 95% Bush. Senator McCain voted with President Bush 95% of the time during the past seven years.

If you think President Bush has done a good job with the economy, then John McCain is your man.

Are you better off today than you were 8 years ago?

If not, then I suggest that you vote for Barack Obama in 2008.

[mcvet]

Yeah the top 10% already pay roughly 70% of all taxes, we should take more. Then they can lay off a few people who work for them to offset the difference, great idea rocket.

Posted by thcarson at 04:05 AM : Jul 17, 2008

Yeah yeah! We''ve heard it all before Swastika Breath! Exactly how much of the Wealth does the top 2% Hold? Now IF they hold 90% of the Wealth shouldn''t they pay 90% of the tax?? Ready? Let''s let Shooter and the Fuhrer hear you today!! SIEG HEIL BUSH

[mcvet]

But will Osama ben Bama pay his fair share of the taxes should he become president?...I think not.

Posted by CarlyLaine at 04:50 AM : Jul 17, 2008

You know this how?? OH! Let me guess! YOU GOT A NEW MAGIC SWASTIKA?? ROFLMAO Now let''s give the Republican Leaders the sounds they love! SIEG HEIL!! ROFLMAO

[carlylaine]

Posted by TRBundro1277 at 02:47 AM : Jul 17, 2008
Atleast with President Obama, rich people will finally be forced to pay their fair share of taxes.

******************

But will Osama ben Bama pay his fair share of the taxes should he become president?...I think not.

[thcarson-2009]

** Atleast with President Obama, rich people will finally be forced to pay their fair share of taxes!


--------------------------------------------------------------------------------

Posted by TRBundro1277 at 02:47 AM


Yeah the top 10% already pay roughly 70% of all taxes, we should take more. Then they can lay off a few people who work for them to offset the difference, great idea rocket.

[stn_sage]

Posted by the74blaster at 11:35 PM : Jul 16, 2008
----------------------
My response: Thank you very much, that''s kind of you to say! Take care.