It’s Election Day and with Americans casting their votes, many of them have the same question in mind: How do the presidential candidates intend to improve America’s job market?
Barack Obama (Democrat) and Mitt Romney (Republican) have each proposed jobs plans that could impact Americans significantly over the next four years. Interestingly enough, the plans share some similarities.
Below are the details of each plan to help you make an informed decision as you hit the polls today.
Obama has a formal plan in place with The American Jobs Act, released in 2011. The plan focuses on tax cuts for individuals and small businesses and employing workers while investing in infrastructure and unemployment reform. It is fully funded, mostly through “eliminating itemized deductions for the wealthiest Americans.”
He emphasizes that there have been “31 straight months of job growth and 5.2 million new private sector jobs “ while he has been in office, as well as 1 million+ jobs saved by the auto industry bailout. New ideas included in his “Economy Built to Last” plan are:
1. Innovation: focus on manufacturing job growth to spur growth in other industries and technology. Create 1 million new manufacturing jobs by the end of 2016 and double exports by promoting free trade.
2. Taxes: cut spending and increase revenue from taxes paid by American’s millionaires and billionaires. For every $1 in revenue increases, spending will be cut $2.50.
3. Nation Building at Home: put unemployed Americans back to work building infrastructure as part of “Project Rebuild”.
4. Energy: eliminate subsidies for oil companies and develop domestic production of natural gas, creating 600,000 jobs in the clean energy sector. Decrease reliance on foreign oil suppliers.
5. Education: Become a world leader in college graduates over the next 8 years, while decreasing tuition costs by 50% over the next 10 years to promote access to higher education. Strengthen the link between community colleges and private businesses to train Americans for existing jobs. Prevent layoffs of current teachers and recruit 100,000 math and science teachers to increase ability to compete globally in STEM (science, technology, engineering and math) fields.
Romney has proposed a 5 part job plan to create a stronger middle class that he believes will create 12 millions jobs. The main points of the plan include:
1. Energy independence: increase production of energy derived from US natural resources, creating jobs in these industries and decreasing energy costs for businesses.
2. The Skills to Succeed: increased access to quality education and link private enterprises with unemployed workers through on-the-job training programs. Fill the technical labor shortage by raising the H1-B visa cap and easing restrictions on permanent residency.
3. Trade that Works for America: Increase business with Latin America while cracking down on unfair trade practices in China. Cut taxes for multinational corporations to entice corporations to do business in America.
4. Cut the Deficit: Transition federal government responsibilities to the states for programs such as unemployment and Medicaid, with a goal to reduce government discretionary spending to 20% of GDP.
5. Champion Small Business: Decrease red tape faced by companies trying to create jobs, while protecting workers from unfair actions of unions. Reduce individual income taxes by 20% and lower corporate tax rate to 25%. End Obamacare and implement a cost-effective health care reform system with a focus on quality healthcare.
What issues do you think will have the most impact on the American economy?