Why I think we need Obama as president

By: ispeculatornew
Date posted: 10.29.2008 (4:00 am) | Write a Comment  (2 Comments)

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Touchy subject, I know, but I will state my opinion because after all, that is what a blog is for isn’t it? I will only be talking about the financial aspect in this post and will obviously not get into social rights, etc.

Generally, conservative right wing movements (Republicans) are seen to have more favourable policies for the economy mainly because they tend to have lower tax rates and less of a government presence in the economy. Given the fact that the government is generally not as effective as the private sector, it is generally seen as a better solution. On the other hand, the Democrats are generally seen as looking out for the middle class Americans.

Now, one of the main problems with this has been looking at what has happened during the Bush administration. Sure, the government did diminish tax rates for Americans. But at the same time, expenses by the federal government increased at a high rate, mainly because of the Iraq war. So we’re now in a situation where the government has been living above its means and has been getting more and more in debt. While Barack Obama will be diminishing taxes for the middle class, he would increase taxes paid by “the rich” and that would result in a net increase in the government revenues. John McCain on his part is counting on keeping taxes low and maybe even lowering them… It kind of reminds me of what we’ve been hearing for the past few weeks and months about how the American consumer has been living above its means and spending more than it had while accumulating debt.

If that was the underlying problem with the American consumer, why would it not apply to the US government? As well, I remember John McCain saying he was not a specialist of the economy which to me is incredible because as much as I think being the commander in chief is important, I believe the impact of a strong economy is as important in the long term and leadership of the country requires someone who can combine stregths in both sectors. Sure, Barack Obama does not match John McCain’s experience in foreign affaires but Joe Biden does make up for it. Does Sarah Palin make up for John’s lack of knowledge in the financial sector…? I don’t think I really need to answer that question…

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2 Comments

  1. Comment by Fred — October 29, 2008 @ 4:15 pm

    Aren’t you overlooking the $1 trillion of increased spending that Obama is proposing?

    I agree that it was a mistake to increase spending while cutting tax however it was done with the aim of pulling the US economy through the tech bust and 9/11 shock.

    McCain is the only one who has talked about serious budget expenditure reform in the campaign, and is more likely to veto excessive budget bills coming out of a Pelosi/Reid Congress.

    It’s not just the tax, its the spending as well.

    As for Palin making up for McCain’s economic shortfall – her record in AK isn’t bad. Besides, who’s making up for Obama’s lack of knowledge in economics and finance?

  2. Pingback by The Financial Blogger | Financial Ramblings — November 1, 2008 @ 4:01 am

    […] Intelligent Speculator is cheering for Obama. […]

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