Economic Consequences of the Election
William Dunkelberg, Ph.D.
Professor of Economics at Temple University, Formerly Dean of the Fox School of Business
November 24, 2008
Everyone running for president promises "change" and promises a big basket of goodies. This past election was no exception. But, once done, the winner's promises collide with reality, reality in a political context and in a real-economy context. We forget that our presidents have little power to deliver on promises, only Congress and in particular the House of Representatives can tax and spend. There are a number of Iraq war promises, most of which appear to be coming true on their own and that President Obama may \"clean up\". There are many promises to unions that supported him heavily, now exacerbated by the problems of the old \"Big Three\". The strains on government finance are far larger than either candidate could have imagined a year ago in the campaign and government ownership of private companies is on the rise. How will this end? Tax reform shifting more burden to higher income citizens (now not quite as high!), taxing the income from "capital" (also rather substantially diminished these days) and providing more tax subsidies will be high on the agenda, with Congress' imprint. The "first 100 days" will be bad days for the economy and probably bad days for many of the presidential promises.
Learn more about Prof. Bill Dunkelberg.
Read Prof. Dunkelberg's latest "Notes On the Economy."