Building a Better, Safer World

The Hubert H. Humphrey Institute of Public Affairs at the University of Minnesota held an event today entitled “Building a Better, Safer World: What Would a McCain Presidency Do?” Sen. Joseph Lieberman was a late-addition, he dominated the panel discussion. Other panelists included Ambassador Robert Portman, former Reagan Security Advsior Robert McFarlane and Richard Williamson, a foreign policy advisor to Presidents Ronald Reagan and George HW Bush. All panelists are currently advisors to Sen. McCain and his campaign.

Much of the discussion focused on foreign policy issues set in the Middle East and the need for free trade agreements to cement American allies around the world. “Our image in a lot of the world is better than we think it is,” Sen. Lieberman said. “Iraq now is potentially a great model for the future in the Islamic world in this sense: Al Qaeda's been rejected ultimately by the Sunnis because they were brutal. Now you have the possibility in Iraq of a self-governing, self-defending and self-developing country economically.”

Ambassador Portman focused mainly on trade. “Trade is a politically controversial issue these days but is an essential issue of soft power." He continued, “Trade is single best weapon we have to reduce poverty. It's about more than trade with these countries, it's about countries being able to trade with each other.” Both Lieberman and Portman agreed that free trade should be increased during the next presidency.

McCain campaign fires back at Obama

Sen. Barack Obama (D-Ill.) has shifted his position on taxes to win the hearts of American people, when in reality he has voted 94 times to raise taxes, according to Carly Fiorina, the former CEO of Hewlett Packard. The McCain campaign held a teleconference with Fiorina and others in response to statements from the Obama campaign which said the Illinois senator would reduce taxes on the American people.

Fiorina said that Obama would institute $863 billion dollars in new spending programs if elected president. In addition, she said Obama has asked for nearly $1 billion in earmarks. Fiorina concluded by saying that the top five percent of wealthiest Americans will see the bulk of tax increases.

John Taylor, a Professor of Economics at Stanford University, said that with an economic recession looming, now is not the time to raise taxes on the Americans. He also said that McCain's primary economic focus is about creating jobs for the American people. Taylor agreed with Fiorina that Obama has shifted his position a number of times in order to earn more votes.

Obama promises tax cuts for middle class, increase for the wealthy

Sen. Barack Obama's tax plan would cut taxes to rates that are lower than those seen under Ronald Reagan, according to Jason Furman, the Obama for America Economic Policy Director. He and others held a conference call to discuss Obama's tax plan, and to dispel any myths that they feel were spread by Sen. John McCain's campaign.

Furman went on to say that taxes on middle class families would be significantly cut, with the overall tax rate brought down to less than 18 percent of our nations Gross Domestic Product (GDP). In addition, he said Obama would supplement these cuts by ending the war in Iraq responsibly and cut subsidies to Medicare HMOs. Furman also said that any family earning below $250,000 annually can expect no tax increases under an Obama administration, while McCain cannot say the same thing. He said that McCain's plan, for the first time in history, would force Americans to pay taxes on health insurance they receive from employers. Furman said this would result in a $3.6 trillion tax increase on middle class Americans.

Austan Goolsbee, Chief Economic Advisor for Obama for America said that the top one percent of households would see their taxes go from 21 percent to less than 25 percent. In addition, Goolsbee said that Obama would lower taxes on dividends and capital gains.

Former Treasury Secretary Larry Summers points out that while the McCain campaign and Conservatives in Washington have said that a Democratic tax plan would cause a recession, he points to the tax plan of the early 1990's under President Clinton. This plan was followed by the largest economic boom our nation has ever seen.

21st century may see decline of the US

"On the streets of Miami, an AK-47 is cheaper to buy than a Playstation", said Manny Diaz, Mayor of Miami and President of the US Conference of Mayors. He spoke about the challenge to the next presidential administration to invest in solutions to the growing problems that threaten America's cities and metropolitan areas.

Diaz said that over 85 percent of Americans live in metropolitan cities. In addition he said that 1 in 6 children in America currently live in poverty, and that 60 percent of children cannot read or do math at their appropriate grade level. In addition, he said that America's infrastructure is severely underfunded. He worries that in the 21st century we will see the economic decline of the United States much in the way Europe declined during the 20th century.

Though initially backing Sen. Hillary Clinton (D-N.Y.) for president, Diaz has not given an official endorsement to either Sen. Barack Obama (D-Ill.) or Sen. McCain (R-Ariz.). However, he did say that he would only consider backing either candidate should they choose to endorse the Mayors' 10-Point Plan, which outlines 10 policy issues that many mayors across the nation feel the upcoming presidential administration must address to foster stronger cities and metropolitan regions.

Obama seeks advice

The Obama Campaign held a conference call in which campaign staff discussed a meeting between Senator Obama and economic advisers. Dr. Laura Tyson, former chairwoman of the President's Council or Economic Advisers under Clinton, said structural issues like health care and education were discussed alongside large economic issues like the financial markets.

Tyson said tax cuts proposed by Obama are similar to tax cuts in the mid 1990s that lowered unemployment in some places to two percent. She said others and herself in the first Clinton administration never imagined unemployment would be capable of dropping below five percent. According to Lynch, Obama's tax cuts would give $1,000 to 95 percent of middle-income families.

Former Senator Bill Bradley (D-N.J.) said Republican candidate John McCain's call for increased domestic drilling to lower gas prices would not be functional for at least five years, comparing the strategy to McCain's call for a gas-tax holiday. Bradley suggested that Americans will view both strategies as an attempt to grab attention. Bradley, implying Barack Obama, said only one candidate truly understands long-term economic strategies and the need for government to set and enforce economic rules.