Jaco – Obama’s Economic Plan Is Weak

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ST. LOUIS, MO (KPLR) - The democratic convention gets rolling on Tuesday. And it's a sort of melancholy affair. Much like a weeding anniversary when the marriage has already gone South. You put on a game face and smile a lot, but all it does is remind you of when things were better. Having said that, once we get past the speeches and balloons, what does the Obama economic policy look like.

The first answer is; it doesn't matter much what it looks like. The republicans controlling the house of representatives, and requiring a 60 vote super-majority to pass anything in the senate, means anything the president puts on the table, like the american jobs act of 2011 is dead on arrival. That plan, which he'll re-introduce this year, calls for middle income and small business tax cuts, and more job training, and would be paid for by raising taxes on the wealthy. That happens both  by letting Bush tax cuts expire for people earning over $250,000 a year and instituting a surtax on the top earners.

Obama's plans to tackle the debt and deficit are long-term and depend mostly on businesses hiring workers and new employees paying taxes. The problem with that is most businesses aren't hiring.  They are using record profits to instead pay down debt and pay investor dividends. Large corporations are lobbying to have the corporate tax rate, the world's highest, cut down from 35 percent. Obama is resisting.

In fact, the Obama plan is weak on many specifics because the president is largely a prisoner of what congress allows him to do. His main economic argumenty is, "Hey, it could have been a lot worse. I kept us from sliding into another great depression. So give me another shot."

As economic visions go, it's not much. But as the champagne goes flat at this anniversary party, it's just about all he has.

I'm Charles Jaco and that's Jacology.

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