Transcripts

"Economic Choices '2008"-The McCain Economic Plan

SUSIE GHARIB: Last night, it was the Obama economic plan. So, tonight, we continue our special election-related commentaries with a look at McCain's prescription for the economy. It's all part of our "Economic Choices '08" coverage of the presidential election. Tonight's commentator, Nada Eissa, associate professor or public policy and economics at Georgetown University, weighs in on the McCain plan.

NADA EISSA, ASSOCIATE PROFESSOR OF PUBLIC POLICY & ECONOMICS, GEORGETOWN UNIVERSITY: The next president will face serious economic and fiscal challenges, made worse by the recent turmoil in financial markets and taxpayer-financed bailouts. So, how would a President McCain deal with these challenges? Well, that depends. Judging by his record on economic issues, there is a lot to like about John McCain. As a senator, he promoted free trade and fiscal discipline. And though he favored limited regulation, he called for regulating Fannie (FNM) and Freddie (FRE) long before the current crisis. But as a presidential candidate, his economic agenda falls short. The heart of it is a promise to make the Bush tax cuts permanent and to cut corporate income taxes further, to the tune of $4.2 trillion over the next decade. He has also pledged to balance the budget by 2012, but that means eliminating all discretionary government spending outside of national defense: everything from highway projects to student loans and federal prisons. Forgive me if I am skeptical of that ever happening. McCain's proposal substitutes deficit spending for taxes. That may be politically astute, but it is not pro-growth. Recently, the senator has taken a more populist tone, promising to look out for workers. But his agenda is weak on the economic anxieties many workers feel, whether from stagnant wages or insecurity about their retirement incomes. The decline of the housing and credit markets will force difficult choices be made sooner than most anticipated. How John McCain would approach these challenges is anyone's guess. I know which one I'd like to see. I'm Nada Eissa.