The Candidates and The World

Transition 2012

A guide to foreign policy and the 2012 U.S. presidential transition.

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Midday Update: Economists’ Advice for the Candidates

by Newsteam Staff
November 5, 2012

Photo of the Day: Bags filled with voting supplies wait to be doubled checked prior being sent to precincts in Charlotte November 5, 2012. (Chris Keane/Courtesy Reuters) Photo of the Day: Bags filled with voting supplies wait to be doubled checked prior being sent to precincts in Charlotte November 5, 2012. (Chris Keane/Courtesy Reuters)

The BBC provides a roundup of economists’ recommendations on how either candidate should handle the economic challenges confronting the United States.

Martin Regalia, chief economist at the U.S. Chamber of Commerce, says:

Our biggest economic challenge at present comes from the fiscal cliff – the combination of historic tax hikes and across-the-board spending cuts that will be triggered on 1 January.

If politics get in the way of addressing it, there will be a very negative effect on our economy. Uncertainty over the potential looming tax increases is already depressing economic activity and Congress should act now to address it.

Lena Komileva, chief economist and managing director at research and advisory service G+ Economics, advocates for “a new sustainable model for the economy, with strong governance taking the helm from free markets and globalisation to chart the direction forward.” She reminds President Obama that the U.S. economy needs strong leadership and advises GOP nominee Mitt Romney to ensure that economic policies are socially inclusive.

Read more about the candidates’ positions on the economy in this CFR Issue Tracker.

The Wall Street Journal examines Virginia’s competitive race for the U.S. Senate and the impact of impending military cuts on jobs in the state.

The race between George Allen and Tim Kaine could help decide which party controls the Senate, and the debate over defense cuts included in the sequester has had particular resonance in a state that is heavily dependent on military-related jobs:

Mr. Kaine supports the deal, saying it puts pressure on Congress to get the federal government’s finances in order. He has said he believes some military cuts are necessary but should be strategic and limited.

Mr. Allen said he believes the deal will lead to severe cuts in military preparedness and jobs. He favors tax cuts that he said would boost the economy, and thus tax revenue, as a way to ease the federal deficit.

Read more about the candidates’ positions on defense policy in this CFR Issue Tracker.

GOP nominee Mitt Romney does not have the legal authority (Reuters) to label China a currency manipulator on his first day in office, as he has promised.

“The authority to make the formal accusation lies with the U.S. Treasury secretary, which could be a face-saving remedy that former U.S. officials said Mr. Romney might need,” Reuters reports.

Romney has continued to defend his position on Chinese currency manipulation despite concerns from economists that it may launch a trade war.

This CFR Issue Tracker details both candidates’ stances on U.S.-China policy.

–Contributing Editor Kirsti Itameri

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