Economic Policies in America, Essay Example

In United States, Republican Party is among the two main modern political parties, alongside the Democratic Party. Republicans lay emphasis on the function of free markets and personal realization as the prime factors behind economic progress. They preferred fiscal conservatism, laissez-faire economics, and the support of personal accountability to welfare plans. There are several Republican presidential candidates who gave their economic policy proposal, among them are; Barack Obama, Michele Bachmann, and Ron Paul.

In the case of Obama, his administration has been affected by the 2008 financial crisis. Initially, his strategies seemed to assist: By the third quarter of 2009, GDP expansion changed positively and job losses ended in March 2010. However, when Obama initiated his re-election crusade in 2011, it appeared the revival had delayed. Obama has been most relentlessly condemned for not dropping unemployment lower than 9%.

Obama presented the Americans Jobs Act in September 2011, which was condemned for containing similar elements as the Stimulus Act, however, those strategies worked. He also advocated for tax cuts, Obama and Congress approved In December 2010 upon supplementary stimulus by tax cut of $858 billion. It had three major constituents: a $56 billion expansion of unemployment benefits, $350 billion addition of the Bush tax cuts, and a $120 billion decrease in workers’ payroll taxes. In July 2010, Obama appended the Wall Street Regulation, which enforced thus improve control of eight parts that led to the fiscal crisis. However, a year afterwards, much of the controls had not been imposed. The financial business protested that this set of laws were rendering them less competitive and hence high unemployment. On deficit spending, Obama record-setting was an effect of his economic strategies .It was as well due to record security spending to support the Iraq and Afghanistan warfare. Returns were greatly lower than projected thanks to sluggish growth and tax cuts.

As for Bachmann, she was against the raise minimum wage, she did not give up from her previous proposal to abolish the federal minimum wage, a transform she believed to practically wipe out unemployment. Her economic strategies came from her believe in the founder’s idea of a restricted administration that trusts in and conserves the limitless potential of the American people. Her major economic main concerns are to refurbish economic increase and generate many new employments. She believes can be attained through deep cuts in expenditure, to decrease America’s debt, and tax cuts to encourage consumer demand and job growth. In her proposal, Bachmann place out a ten point map to fix the economy. These are; Cut federal expenditure by 25%, repeal Obamacare which she has already filled the forms, stop federal bailouts for Wall Street and pension policies, Privatize Freddie Mac, Fannie Mae, and Sallie Mae, advocate for the permanent Bush tax cuts,  decrease the corporate tax rate to 9% or less and lastly remove the capital gains tax Repeal the estate tax.

The impact on the economy is that, Bachmann’s arrangement to refurbish fiscal accountability was desired in 2005, to decrease the fizz. Now, it can thrust the country more into depression. Across the board, cut of 25% in federal expenditure would perhaps lead to enormous government layoffs, enlarge unemployment. Abolish Obamacare would lessen doubt surrounding rules on undersized businesses; however, that may not be sufficient to assist businesses develop with no more consumer demand. It could also raise administration costs to Medicare, as health care costs keep on rising. To eradicate bailouts, Bachmann first wants rules to lessen the bulk of banks and other businesses that are too big not succeed, expanding the Bush tax cuts in 2010 did not lessen unemployment, which stayed trapped at 9%, whereas economic expansion delayed at 1% or less. Privatizing Fannie Mae and her sisters would close up the mortgage business, since 90% of all mortgages are now federally assured. Cutting individual proceeds taxes may assist to induce the economy, though middle proceeds families might utilize the tax breaks to pay down debt or add to reserves instead of expenditure.

In the case of Ron Paul, he has constant in his economic suggestions. He advocates for less government, meaning lesser Federal expenditure, and lesser taxes. It also indicates less interference by the Federal Reserve, if not its total abolition. He would favor a return to the gold standard instead of monetary policy. On federal Spending, he urged his colleagues to stop opposing debt ceiling, which to him will increase the national debt ceiling and hence avoid harsh financial disturbance.

On the military spending, he is the only one who advocates for a significant decrease in military expenses. Though he did not vote for Paul Ryan’s Road Map, he advocates for a cut in privilege programs, such as Social Security and Medicare. In fact, he would advocate for the stop of the welfare state and use funds to generate jobs. He supports tax cuts and come back of the gold standard as a system to control government expenses, shortages, and inflation. Federal Reserve should be abolished, or at least checked, since it prints money, thus lessen the dollar. On the impact on the Economy, his proposal to lessen the deficit by cutting defense expenditure is right on target. Paul commonly preferred a fiscally liable balanced budget, which would aid hold the value of the dollar and reinforce the economy. Cutting taxes has not produced any fruit in job creation according to him. His bid to raise tariffs on imported supplies could harm our trade dealings with other countries. They could react by increase their tariffs, hence rising inflation, and declining our ability to export.

In conclusion, I would prefer Obama to the other two because of his economic policies, which have mostly applied to our economy. In an event of an election, I would vote him back to the office to continue implementing his strategies.