jueves, septiembre 18, 2008

The presidential campaign and the U.S economy

The presidential campaign and the U.S economy
The hot new topic to persuade and attract votes

Alfredo Ascanio (askain)

The former senator Phil Gramm of Texas, economic adviser to McCain was quoted as saying: that the United States there is only a "mental recession" and that the country had become "a nation of" mourners ".

McCain in turn said: "There is an enormous chaos in our financial markets and on Wall Street." "People are scared by these developments. I believe that still the fundamentals of our economy are strong" and then emphasize: "But these moments are very, very difficult. And I promise that we will never put again America in this position. We will clean up Wall Street. Let's government reform, because that this is a failure”.

His statement about the soundness of the fundamentals of the economy is an issue that has developed many times, for almost a year, usually adding that times are hard or that people are wrong.

However, his reiteration of the observation on Monday following the bankruptcy of Lehman Brothers accentuated the high loss of stock market since the terrorist attacks of September 11, 2001, which is has quickly become a political problem.
Then Obama said: "Let's be clear: what we have seen in recent days is none other than the final verdict on an economic philosophy that has failed completely”.

During the week closing of the presidential race, Obama has been pointing to economic affairs on the issue, after the collapse of Wall Street, to illustrate the need for greater oversight and stronger regulation in the financial sector. But he faces a challenge at this time with Senator John McCain that has adopted a reformer and populist message with the words: "clean up Wall Street".

The basic question is whether Obama can define his candidacy around the economy, like other Democrats who have done previously, and also whether Obama can be seen as the connection with the needs that arise Americans. Then, to persuade Obama continued by saying that:

"Instead of offering concrete plans to resolve these issues, Senator McCain has offered the oldest trick in Washington: You pass the ball to a commission to study the problem".

"But here's the thing - this is not the 9 / 11. We know how we got into this mess. What we need now is leadership to seek immediate solutions”.

Obama calls for more aggressive regulation on Wall Street and a new emphasis on institutional innovation, and oppose issues such as tax cuts for the wealthiest Americans.

"It's difficult to see how Senator McCain is going to get that emerge from this crisis doing the same things with the same old players. Make no mistake: my opponent has been in operation for four years with policies that lead to an imbalance in the economy. For Wall Street would be more convincing if not offer more tax cuts. "

However, neither McCain nor Obama had based their campaign messages across the economy. Obama was the candidate of change in relation to the Iraq war. And largely McCain appealed to Republicans for demonstrating their credentials on national security and support for the war.

Now the economy will be the hot topics of the presidential campaign to recall that phrase years ago "the economy stupid" was said during the campaign of Bill Clinton. In short: McClain and Obama have no choice but to urgently adapt to these new facts of a very severe economic crisis.

The two candidates are right because the economic recovery produces positive effects, especially if U.S. withdrew in time of war in Iraq.

For many years people asked to economists promote policies to raise the Gross Domestic Product, but that was only economic growth and not development. The development is to use resources of production with productivity and also fairly distribute wealth, within a democratic system.

In USA for the year 1933 wages and salaries accounted 74% of national income even with unemployment at 25% of the total employed persons, and profitability or revenue to businesses 8%. Then in 1947, during the post-war, revenue to companies accounted 32% of the country's income and payment of wages for 63% of national’s income and in an atmosphere of full employment. Then, the country has to achieve these indicators again and leave their high difficulty.

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