A Look at Hillary Clintons Economic Policies
By Matthew Johnston |
November 13, 2015
The middle class has been on the decline for nearly half a century, and with income inequality now at levels not seen since the 1920s, the Democratic presidential race has been largely focused on economic security for the bottom 99 percent. Democratic Presidential hopeful Hillary Clinton’s campaign is no different.
's economic policies target the
middle class, promising to secure their economic futures and expand their
opportunities through greater access to education and more evenly distributed
economic growth. Clinton
The American dream promises that hard work will naturally lead to success. Yet with incomes no longer growing in line with productivity, it would appear that this central tenant of the American dream is fading.
wants incomes to rise in line with
corporate growth and productivity. Her website says that the “defining economic
challenge of our time is raising incomes for hardworking Americans.” Clinton
In order to achieve strong economic growth,
believes that it is important to
invest in education and infrastructure, promote small business growth and
increase workforce participation, especially for women. Clinton
The New College Compact is
's plan for making higher education
more affordable and accessible. The plan extends tax cuts of up to $2,500 per
student and significantly cuts interest rates on student loans. It also
guarantees all students tuition-free community college and the ability to graduate
from a four-year state school without taking loans for tuition. Clinton also proposes to invest in more
scientific research. The New College Compact is not cheap. It will cost an
estimated $350 billion over the next 10 years--a budget gap that Clinton plans to close by eliminating
certain tax loopholes and expenditures that benefit mainly the wealthiest
On her website,
also writes “that small businesses are the backbone of jobs
and growth in Clinton .” Part of her campaign is promising
to provide small businesses with increased access to capital, greater tax
relief, easier access to new markets and less red tape. America
The labor force participation rate has been on the decline for a number of years now, and
wants to improve the situation. One
of the ways in which she wants to do that is by making the workforce more
accessible to women through equal pay, paid leave and affordable child care. Clinton
To encourage companies to share profits with their workers,
has proposed a plan to implement a
15% tax credit - even higher for small businesses - for businesses that
distribute profits to employees. The tax credit would be targeted at those
workers and businesses that need it the most. Clinton expects the plan to cost close to
$20 billion over ten years and she plans to pay for the credit through closing
tax loopholes. Clinton
Concerning the federal minimum wage,
is supporting that it should be
lifted to $12 an hour. But, through state and local government efforts, and
stronger collective bargaining for workers, she hopes to boost wages even
To ensure that the wealthy pay their fair share in taxes,
plans to do away with the carried
interest tax break and other tax loopholes and expenditures that serve to
benefit the rich. Clinton
Believing that early development is crucial for later success, Clinton also plans to expand early learning through a proposal that would give every 4-year old in America access to high-quality preschool education. Making this education available to all children would help to ensure that they all have equal opportunities for success.
wants to emphasize long-term
economic growth. To achieve this, she aims to encourage companies to plan for
long-run growth instead of short-run gain. She also plans to increase
regulation on Wall Street that would deter risky speculation that might have
long-term destabilizing effects on the economy Clinton
To encourage businesses to invest for the long-term, she proposes to reform the capital gains tax in a way that would give greater rewards to investments aimed at creating jobs and future growth. She will also work to discourage the influence of shareholders that are too focused on short-term profits, as well as reforming executive compensation so that it is more aligned with the achievement of long-term growth.
One of her major focuses in this regard will be to impose strict accountability on Wall Street. She will defend the Dodd-Frank Wall Street Reform and Consumer Protection Act, but will also work to remove the dangerous risks posed by the financial sector by giving more power to independent regulators and ensuring that criminal activity is dealt with appropriately.
EFFECTS ON THE ECONOMY
In an economy that appears to be struggling from a lack of aggregate demand, plans to increase infrastructure investment, help small business growth, and put more money into the pockets of middle-class Americans make a lot of sense.
Putting more money into the pockets of middle-class Americans will increase their purchasing power, which will raise aggregate demand. Business confidence will rise and future investment will be seen to be profitable once again. Thus, helping to increase incomes for the middle class doesn't just benefit just them, but all Americans, including the wealthy.
Discouraging risky financial speculation will also help to direct funding to more long-term investments that will help to create more jobs. In fact, it may be that the economy is so broken that it is encouraging those with more money than they know what to do with to engage in financial speculation that differs little from gambling.
With purchasing power returned to the middle class, cracking down on risky financial speculation will build the right incentives for real productive business investment to become not just profitable, but sustainable.
THE BOTTOM LINE
Investopedia - http://www.investopedia.com/articles/markets/111315/look-hillary-clintons-economic-policies.asp?utm_source=news-to-use&utm_medium=email&utm_campaign=NTU-11/18/15&utm_term=news-to-use