The two Presidential candidates actually do agree on something: The financial crisis is a result of greed on Wall Street and Main Street (which is political lingo for you, me, and everyone we know). But while you may know their stances, you may not know how their plans will affect you should they be elected.
Barack Obama
Obama blames the current financial climate on the U.S.’s economic framework and sympathizes with Americans plagued by the increasing cost of living-- allwhile on a stagnant income. He also points out that Americans have been living beyond their means.
In order to prevent further economic crisis, Obama urges growth from the bottom up. He stands by his pitch to cut taxes for middle class Americans. He’s even thrown in another economic stimulus package proposal. His plans to reform health care, education -- and energy resources are also in the mix.
While Obama’s plans for tax cuts and social reform could be good for the economy in the long-run, they’ll also benefit us now. The policies encourage consumption, which could be good…if it we weren’t already consuming so much.
John McCain
McCain claims to have seen this coming. Two years ago, he warned of the instability of Fannie Mae and Freddie Mac, but no one listened to the “old-timer.”
McCain wants to cut taxes for businesses. He observs that the U.S. taxes businesses by 35 percent while a country like Ireland only taxes 11 percent (although Obama disputes that these higher taxes are never actually paid due to loop holes). McCain says lower business taxes mean lower prices for consumers.
McCain’s corporate tax cuts simply aren’t enough, though, to combat a budget that is out of control and a national debt that is soon to skyrocket.
So, who is right? With an economy changing overnight, it’s tough to say. Both plans reward consumption over saving. Like Wall Street, higher education is an investment. Its risk, however, depends on an individual, a much safer bet. Student and their families should take a closer look at the cost of college. Paying for a college education requires families to live within their means.
Ultimately, each family will need to look within their own budget to combat the effects of a downward market and a looming billion-dollar bailout. The question now is…is your family ready? Or will you need a bailout?
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