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Monday, October 26, 1992
UNIVERSITY DAILY KANSAN
A
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UNIVERSITY DAILY KANSAN
Focus on the candidates and the issue of..
This is the first in a series of five groups of articles addressing the views the three main presidential candidates have on issues of this election.
The Economy
"In the end he believes the government is the problem. Basically, you have to get the government off the back of the people."
Allen Cigler, professor of government
"Bill Clinton is taking a traditional Keynesian approach, which means pumping the economy with money. We've been our way out of the recession."
David Burress, assistant professor of economics
Source: Kansan staff research
"Until you get the deficit reduced, you are stagnant. You can't just keep spending money on paying the interest."
- Dede Blick, volunteer for Northeast Kansans for Perot
Sean M. Tevis / KANSAN
Bush guards spending
By Lynne McAdoo Kansan staff writer
President George Bush believes that government is too big and spends too much money.
Bush asserts that the government sucks the energy out of the economy by adding one more barrier between suppliers and consumers. Bureaucratic red tape and government regulations sap the resources of private businesses.
"In the end he believes the government is the problem," said Allen Cigler, professor of government. "Basically, you have to get the government off the back of the people."
ANALYSIS
Others believe four more years of bush means no change in the economy.
“It's more of the same and that gave us four years of recession,”said David Burress, assistant professor of economics.
Kerry Lynch, assistant director of research at the American Institute for Economic Research, said Bush was not completely to blame for the bad
"I don't know what Bush could have done differently that would have been good for the economy," she said. "The fact is that the slow growth in the United States has to do with the global growth slow down."
Government spending reductions, not tax increases, are the only way to decrease the deficit, said Bush in his speech "Agenda for American Renewal."
At the basis of this plan for renewal is the North American Free Trade Agreement. Bush said the agreement would erase the trade borders between Mexico, the United States and Canada and would stimulate growth in Mexico, which would translate into more customers for U.S. goods.
But some experts argue that the opening of these markets could result in U.S. companies relocating to Mexico in search of cheaper labor. They also are concerned that companies will find a haven in Mexico because of lax environmental laws.
Burress said Bush would get an "F" for not addressing the short-term effects of NAFTA.
"He does nothing as far as protecting us from very rapid structural changes in unemployment and very strong attacks on the environment of the United States," he said.
Bush's proposals for stimulating the economy include:
A cap on the growth of mandatory programs like Medicare.
A balanced budget amendment to the U.S. Constitution.
A capital gains tax cut. Capital gains are profits usually made through investments, like stock in companies. Bush believes this cut stimulates business because people will have more money.
Enterprise zones. The program would offer incentives for businesses to relocate in urban areas.
Leearness describes Bush's view of government mixing with business.
"Politics is the biggest problem," Lynch said. "Instead of decisions made for economic reasons, they are based on who gets the benefits."
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