Issue number one: the economy

Obama opened the debate addressing the dire state of our economy, calling our current situation "the worst financial crisis since the Great Depression." With each candidate prime for attack and a bit of mudslinging going on, the candidates delivered responses that warranted attack from the opposition. Obama spoke first, quick to place the blame of our financial crisis on the past 8 years of administration. He highlighted the need for tax cuts for the middle class. He also said it's essential to make sure Wall Street CEOs don't get big bonuses.

McCain followed Obama with an equally compelling response, outlining his belief that rather than cut taxes for the middle class, releasing financial pressures for everyone is his priority. McCain argued that universal tax cuts combined with energy independence is the best way to ease the crashing economy.

The two went on to address a vital appointment of their cabinet: secretary of treasury. Warren Buffet was mentioned as a supporter of Senator Obama and was cited as one of his possible choice. However, talk from both candidates about the corruption of "Wall Street cronies," made this potential appointee—an extremely influential “cronie” on Wall Street—seem a bit hypocritical.

McCain cited Meg Whitman, president and CEO of eBay, as his choice for
secretary of treasury. The current secretary, Paulson, has been under intense scrutiny as of late and with the economy in such dire straits, the appointment of the secretary of the treasury is arguably the most important appointment of this election.


OBAMA:
To fix the financial crisis he proposes streamlining regulatory agencies which he thinks will help keep banks that borrow from the government in check. Establishing a checks and balance-like system would regulate trading activities and enforce full disclosure in regards to financial earnings.

To stimulate growth within the current economy, Obama’s plan focuses on creating jobs and offering tax reliefs to the middle class. He also proposes more stringent bankruptcy laws and stricter regulation of credit card practices.

MCCAIN:
His proposal involves creating something he calls a Mortgage and Financial Institutions Trust (MFI) which will work directly with banks and regulators to identify faulty loans and mortgages to then resell once the markets have stabilized. The treasury would absorb the profits of these bad loans. His plan directly coincides with the $700 billion dollar bailout plan passed by congress two weeks ago.

To rejuvenate growth, McCain proposes cutting the corporate tax rate by 10 percent, from 35 percent to 25 percent. He also thinks cutting “pork-barrel spending” would eliminate $10 billion worth of spending that Bush approved for local projects.

The respective plans by the two candidates have been one of the most popular topics of the debates and presidential campaign as a whole. With Wall Street teetering on a daily basis and the election just three weeks away, I have no doubt that the economy will continue to dominate the campaign trail leading up to November 4th.