Debate over the economy is once again at the forefront of the presidential campaign, and college students used to tuning out politicians' promises on jobs and taxes could be affected by the economic policies of whoever occupies the White House in January.
President George W. Bush and Sen. John Kerry disagree sharply over the state of the economy and its performance during the president's first term, but each candidate has devoted much of his domestic policy platform to promoting economic growth and stability.
Virginia Republican Party spokesperson Shawn Smith highlighted the country's and Virginia's economic performance under Bush, including what he said were 1.7 million new jobs and a low unemployment rate.
"Economic growth is strong and getting stronger," Smith said. "Virginia's economy is one of the fastest growing in the nation."
To that end, Smith said Bush's economic plan would center on tax cuts, especially for small businesses, which Smith said were key to promoting job growth.
"The president's philosophy is to ensure that hardworking Americans are able to keep more of their hard earned money by ensuring that they have more to spend, to save and to invest," Smith said.
Other economic policies proposed by Bush include reducing federal regulations, reducing government spending and measures such as job training to support workers.
According to Jonathan Beeton, Kerry's spokesperson in Virginia, jobs created in Virginia paid on average $19,000 less than the jobs lost over the last few years.
"People are either getting paid less or having to work longer to make the same amount of money than just a few years ago," Beeton said.
According to Beeton, the outsourcing of work to foreign countries was both a cause of Virginia's lower paying jobs and a key long-term challenge to many economic sectors, including white-collar occupations.
"When that happens there's fewer and fewer jobs to go around," Beeton said. "It provides less and less opportunity for college graduates to do what they had planned to do."
Accordingly, Beeton said Kerry's economic plan would restrain outsourcing by ending laws granting tax credits to businesses that transfer jobs overseas and by offering a new tax credit to businesses that create jobs in economic sectors affected by outsourcing.
Kerry also has discussed health care and education proposals designed to boost businesses and the economy, a reduction in the corporate tax rate and increased enforcement of trade agreements to prevent theft of American intellectual property by foreign businesses.
Politics Prof. Herman Schwartz said the economy had recovered, but differently than in the past. According to Schwartz, corporate profits have increased at a greater rate than in past recoveries, while wages have increased much more slowly than in past recoveries.
"This is a recovery in profits but not in wages, and it's a recovery in profits but not in jobs," Schwartz said.
Politics Prof. Eric Patashnik said the president's tax cuts had stimulated the economy but contributed to long-term deficit problems.
"The structural deficit we face could pose a threat to the long-term economic wellbeing of the country," Patashnik said.
Patashnik also said despite Kerry's proposals, some of the current outsourcing trend was irreversible and suggested job training as an alternative strategy.
"Some of the jobs we've lost to other countries aren't coming back," he said.
Each candidate has pledged to cut the national deficit in half within five years, but Schwartz said neither candidate's plan was realistic given their policies on taxes and spending.
Schwartz and Patashnik agreed on the importance of a college degree in securing a good job in the workforce. According to Schwartz, many of the added jobs are either high-paying or low-paying.
"It's a clear win-or-lose proposition," Schwartz said. "Either you get the good job, or you're off at Starbucks working as a barista."
Patashnik said that in a changing economy, workers needed to be ready to change jobs or even careers.
"We're in a very dynamic economy," Patashnik said.
Although many experts downplay the presidential influence on the economy, Schwartz said the president's policies were still important.
"They don't matter as much as people think, but they matter a lot," Schwartz said.
Read More
Senior VP for Operations Colette Sheehy looks back at her career at the University
By Brandon Kile | YesterdaySheehy’s role involved overseeing the work of around 2,500 University employees, including custodians, architects and engineers.
Will the Faculty Senate’s no-confidence vote impact the U.Va. Board of Visitors?
By Brandon Kile | 2 days agoIn many cases, a no-confidence vote may soon be followed by steps taken to remove the leadership that may be acting against the wishes of a community.
Two senior U.Va. Health leaders quietly take new jobs without formal announcement
By Ford McCracken | 3 days agoKibbe’s departure marks the end of an ongoing battle between U.Va. Health employees and their senior leadership.
