In January either Romney or Obama will begin to form their economic policy for the next four years. Both candidates have different views on how to run the economy, with different aims as a result of their policy.
Since being initially elected Obama has stressed the importance of creating greater financial equality amongst the citizens of the United States. Alongside this there is the development of welfare within the country. Obama has attempted to implement social welfare and the redistribution of wealth by introducing what the Democrats consider fair taxes (middle-class tax cuts, upper class increase). Beyond that, he favoured the increase of federal minimum wage as to establish a method of efficiently redistributing wealth. It is true that Obama was handed the economy during a time of crisis, but the question always was whether it was Obama’s policy that ensured recovery or a natural occurrence. Moreover, during a time of recovery he attempted to implement a national health service.
Romney has always stressed strong links between the financial sectors in the United States, and his economic policy. To some extent Romney can be seen as a business man rather than a political leader. Following a capitalistic approach there is the avoidance of nationalising companies or subsidising them, in favour of keeping business private. There is also the use of contractionary policies in an attempt to reduce deficit. As a method of sustaining economic growth, Romney proposes to expand the military and invest in private security firms such as Halliburton. A major controversial aspect of his economic policy is the interest of reducing the top bracket of income tax. There is also the forethought that Romney wants a U.S. with less reliance on foreign imports for its consumption. This is important in regard to the manner in which Romney would handle trade deficit, and what kind of trade relationships can be expected now.
Both politicians have valid policies backed by theory. Neither of them have the ultimate solution to develop an economy that will grow, while cutting unemployment, as well as improving the quality of people’s lives. Now all we can do is what and see who will be elected, and who will recant possible false promises on what can be done to improve the economy.