Transcript Entire List for U.S. - Stanford University

Perspectives on the Economy,
Economic Policy and the Election
SIEPR
Stanford University
September 24, 2012
Michael J. Boskin
Tully M. Friedman Professor of Economics
Senior Fellow, Hoover Institution
Senior Fellow, SIEPR
Stanford University
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Obama vs. Romney Economic Policies I
Obama
Romney
Spending
Immense increase in first term to
24% of GDP; no long run control
Gradually decrease to 20% of GDP
Entitlements
No change to Social Security;
No proposals on Medicare;
Vague statements considering
possible reforms later
Raise retirement age;
Change indexing;
Premium support option in Medicare
Taxes
Raise rates on capital gains,
dividends, wages, etc., more at the
top; Budget implies huge increase in
future tax rates; Higher corporate
taxes, e.g. on deferral; vague
corporate reform
Reduce personal rates 20%;
Broaden base; Reduce corporate rate
to 25%; adopt territorial system; zero
on capital gains and dividends below
$250K income
Deficits
Record post-WWII; abandoned even
long-run goal of balanced budget;
ignored own Simpson-Bowles
Limit to 1.5% of GDP by end of 1st
term; long-run goal of balanced
budget
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Obama vs. Romney Economic Policies II
Obama
Romney
Debt
Will have doubled debt/GDP ratio
by next year; long-run explosion
(chart)
Gradually reduce debt/GDP ratio
Trade
No leadership on Doha Round;
Delayed but finally put up 3 FTAs;
TPP
Aggressive trade liberalization
(FTAs, etc.); China
Regulation
Aggressive expansion
More cost-benefit analysis; repeal and
replace Obamacare, Dodd-Frank
Energy
Permitting way down; blocked
Keystone; Green energy industrial
policy
Environmentally careful expansion of ALL
economic sources, no industrial policy
Monetary
Policy
Supportive of Fed actions
Says he would not reappoint Bernanke
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