In the wake of the recent financial crisis , both Presidential
candidates have taken great pains to emphasizing their promise to give
critical attention to rehabilitating the economy and protecting the
average American from the mistakes of the financial sector . For his
part , Democratic candidate and junior Senator Barack Obama announced at
Toledo , Ohio the expansion of his economic plans to include new program
proposals designed for the purpose of assisting automakers , employers ,
homeowners , the unemployed , and state and local governments . These
programs , as described by The New York Times ' Jackie Calmes and Jeff
Zeleny (2008 ) are meant to be temporary , but would also be costly to the
federal budget , though supporters dismiss such costs as necessary to the
fiscal welfare of Americans .
The most widely discussed proposal is an income tax credit to be given
to employers for creating jobs in America , rather than shipping new jobs
overseas . This credit is to be valued at 3 ,000 for every new job
created above the company 's current employment level , thereby preventing
companies from attempting to exploit this tax credit by creating new
jobs while simultaneously dissolving existing ones (Calmes Zeleny ,
2008 ) Utilizing a tax credit is a wise move , as it is effectively a
creative subsidy that targets new activity at a marginal cost , as
opposed to other subsidies that are inefficiently designed to throw
federal funds towards activity that would have been...