Comparison and Contrast of the Current Republic and Democratic Monetary Platforms in Advance of Election

Comparison and Contrast of the Current Republic and Democratic Monetary Platforms in Advance of Election

Introduction

This term paper is about the comparison of monetary policy between the Democrats and the Republicans. These two are the main political parties in the political system of United States. They have many policies in common but there are number of differences as well. Democrats have the liberal philosophy while the Republicans are more conservative in their approach. This term paper will only review the differences and similarities in the monetary policies of these two parties. This paper will be arguments and opinions based with the support of some facts and figures.

Discussion

Monetary Policy of Democrats

President Barack Obama represented Democratic Party in recent elections. He was the one who disclosed the party policy before going into the elections. At several occasions during the political campaign, Obama announced a $500 billion cut from the defense budget (defense spending). He also announced that there will be a huge spending on the exploration of natural gas. In order to create 1.3 million new jobs, the government of his party will start a program of Public works, which will cost the government, up to $75 billion. He also announced that the Democrats will fund $85 billion package in order to create new teaching jobs of around 1.5 million. He said that the benefits related to unemployment will be extended and it will cost around $$62 billion (Amadeo, 2012).

The tax policy of the Democrats was focused on creating jobs by using tax cuts. But they promoted an increase of taxes on families with higher income. The later announcement can hurt small businesses in our country. The party was willing to extend the tax cuts introduced by Bush but only for those families which have an annual income of less than $250,000. The party planned to create jobs through taxes. It was their plan to enforce the companies to bring back job to the U.S people instead of giving jobs overseas. They planned to offer a 20% tax credit to those companies who will bring the jobs back to our country. In order to boost the urge for new technology and to force the companies to invest in the plants and equipments of our country, the Democrats introduced 100% tax credit to the corporate sector. They also proposed the elimination of tax breaks for those companies who were moving jobs outside the United States (Amadeo, 2012).

The Democrats took another innovational step in their election complain when they introduce a tax cut in a new way. They planned to offer a tax cut for those companies who will provide long term employments and will provide jobs to veterans and students. This idea was costing their government $65 billion but the idea was creating 0.845 million new jobs. The party had a plan to build the backward areas of our country and to train workers over ...