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Economic Policy Proposals of Barack Obama - Essay Example

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In the paper “Economic Policy Proposals of Barack Obama” the author analyzes one of the pivotal proposals made by President Barack Obama. The intended plan is to offer tax breaks to the American manufacturing companies so as to encourage them to shift their operations to the US…
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Economic Policy Proposals of Barack Obama
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Economic Policy Proposals of Barack Obama

Download file to see previous pages... He intends to do so by extending tax cuts, curtailing the regulatory constraints, encouraging research and development, extending mortgage refinancing to responsible home owners and investing in the fast deteriorating infrastructure (Thoma, 2012). Obama’s proposals also made a mention of dealing with the budgetary deficit and regulating the financial markets (Thoma, 2012). If one carries out a macroeconomic analysis of some of the salient proposals extended by President Obama, they do promise positive economic results in a long term context. For instance, Obama’s proposal of reviving the manufacturing sector by offering tax cuts is indeed favorable. There is no denying the fact that America has lost a large proportion of jobs at home owing to the flight of manufacturing to countries like China (Kind, 2006, p. 29). Manufacturing sector constitutes the cornerstone of any vibrant economy. Revival of the manufacturing sector clearly means the retention of good jobs at home that will directly translate into a good standard of living for the American citizens (Weiss, 2002, p. 83). Boosting the manufacturing sector will directly support Obama’s proposal of reviving exports. The export of goods produced by a competitive manufacturing sector will of course bring back the wealth generated by it to the local communities, through the sale of goods in the local and global markets. This will also have a positive spillover effect in the small businesses that serve as ancillary units supporting the big manufacturing companies. ...Download file to see next pagesRead More
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