The big problem with Obama's economic plan.

[Impulsivity]

steven787 said:

 

Edit: That quote is funny.  He is saying what I said.  The positive effects of more revenue and more money in the pockets of the private citizen are positive, but the lasting effects (efficiency gains) can be far different than the short term.

There is another issue, this doesn't address his plan. People are not better off today than they were 8 years ago. Their real income is lower.

Obama's plan is to expand the graduated income tax. Meaning lower taxes for lower and middle income families (Let's say as an example: bottom ~40%), keep them the same for middle to upper income, and raise rates them for the wealthy (mostly through eliminating the caps the rich have on Social Security Taxes).

This can be argued against or for. There are arguments against it, I am a libertarian so I am not to comfortable with it myself. But I look at it from the realist perspective - the elite pay for the services of the masses to keep them from revolting. Sad but that is the way it is.

My ideology isn't very pragmatic, so I vote Democrat.

What would this do for the economy?
The lower and middle class would spend the difference raising consumer spending and production instead of capital investment.

   Steven's last point is the most important one.  Studies have been done showing that everyone is better off under democrats on average over the last century, while only the rich are better off under Republicans (the super rich at that).  The big reason is the consumer spending point Steven makes.  Poor and middle class people have more money so they spend more which gives more money to everyone working in jobs that require consumer spending to function (more or less every non defense job).  Rich people owning these companies benefit as do their workers, win win.  Look at the Clinton years vs the Bush years (either Bush) or the Kenedy/Johnson years vs the Nixon ones.  Democrats nearly always (other then Carter) are better stewards of the economy then Republicans, suply side DOES NOT WORK, rich people don't spend the money domesticly, they spend it internationally and the tax losses become huge debts.