Regardless of how many binders full of women Mitt Romney keeps in his desk drawer, Hue finds all this economy talk a little baffling. Who really knows which economic plan, if either, will bring back the boom? To that end, we turned to two of FIT’s Economics professors for a little professional insight.
Paul Clement, assistant professor of Economics:
“Romney has proposed a $5 trillion tax cut without expanding the deficit. Instead he proposed to close the loopholes in our tax code and get rid of some deductions. The problem with that is there’s no way he can raise $5 trillion that way, unless he faces the deductions that millionaires and billionaires have, and that would anger his base.
“I think Obama’s plan will work. This is probably the worst recession since the Great Depression. Companies are not going to invest their money until the economy starts to get better. The government needs to act as the stimulus to get the economy going, to encourage the private sector to spend money and create economic growth. And Romney has offered no specifics as to how he’s going to stimulate the economy.”
Juan DelaCruz, adjunct assistant in Economics (and assistant professor at Lehman College):
“I don’t think unemployment is declining. A 5 percent unemployment rate is healthy. Even the 7.8 percent that we’re seeing this month might be misleading. The labor force has been shrinking over the past four years. Many people are giving up on finding jobs. And 47 million people live on food stamps.
“The economy relies on the private sector. Why not support the private sector to create jobs? I don’t believe governments can produce better products than the private sector. And if you raise taxes on the rich, they’ll go somewhere else. Tax reform needs to happen. If you have a tax code that’s clear and simple, without loopholes, you can lower tax rates for everyone.”
Hue has a preferred candidate (but we’re not telling!). Who is yours and why?