The Economic Significance in American Politics

America is undoubtedly one of the most powerful nations in the world. With this power and might, have come many challenges that test the resolve of America, of this power and might. The global economic recession that saw Americans struggle to salvage their livelihoods is one such test. Floyd Norris of the New York Times in his article, “U.S. Stock Market Leads Most Others in Recovery”, indicates that America is leading worldwide markets in the road to economic recovery as compared to other countries. Currently, it is believed that America is the ideal place for investors to reclaim financial stability (Noriss, 2012). This is contrary to the situation in the European market, which moves closer every day to the brink of financial collapse.

Indeed, America has come a long way into stabilizing an economic system that was on the verge of collapse in 2008. The crisis triggered a public outcry as lives were being destroyed, courtesy of the dire economic situation. The economic issues then became the center stage for political debate. Presidential candidates argued on how best to alleviate the situation. It must be understood that the economy is a vital indicator of the prosperity of a nation. If economic prosperity is absent, the people bear the negative impact that comes with it. The people, therefore, come together in support of a leader with the best solutions. Obama was considered a president who would transform the economic meltdown into the gold mine it once was (Kuttner, 2008). It seems that people rely on politics for solutions regarding political issues. An economic crisis is likely to instigate a uniform reaction among voters (Ekins, 2000).

In 2007 and 2008, the congress approved stimulus packages that modestly strengthened the frail economic situation. Despite America being ahead in economic recovery globally, unemployment is still high, and the rate of economic growth remains weak (Carey & Ward, 2012). Economic policy will be a key issue in the 2012 general elections. The electorate will be keen on policies put forth by either camp in reforming the economic policies in the country. If the economy does not gain in terms of sustainable growth, then the electorate may consider the economic policies the Republicans are proposing.

The Obama administration has attempted to solve the issue of unemployment by targeting tax cuts levied on employers and offering tax holidays for employers who provide work. This attempt has been thwarted by the Republicans who now enjoy a majority in congress after 2011 January elections. Looking at the Democrat’s proposal, it seems like a viable plan in reducing the unemployment rate in the country. However, this plan increases government spending and subsequently the overall national debt that is presently at an all time high. In their defense, three million people have joined unemployment ranks since 2008. It is, therefore, important for the democrats to fight using any means necessary to rescue the terrible situation.

The economic strength of America has become increasingly influential among the American electorate and as such, social issues have taken a back stage in political debate. This is because the social fabric of America is determined and maintained by the state of the economy. In a country that prides in upholding justice and human rights, severe economic conditions may inadvertently destroy these values. With high unemployment rates, come increased crime rates and increased poverty levels.

The American economy is improving albeit the progress is minimal. In order to stabilize the economic situation to a sustainable level, correct political decisions have to be made in terms of electing leaders who will adopt reliable, economic policies that will promise America’s survival in the future. The survival of America and its values lie in the strength of the economy. The resilience of the economy, on the other hand, lies in the ability of policy makers to create an enabling environment for effective, economic advancement.

Reference

Carey, R. A. & Ward, S. (September 5, 2012). Why is The Economy a Significant Issue in This Election? USA TODAY. Retrieved from http://www.usatoday.com/news/politics/issues/economy

Ekins, P. (2000). Economic growth and environmental sustainability: The prospects for green growth. London: Routledge.

Kuttner, R. (2008). Obama’s challenge: America’s economic crisis and the power of a transformative presidency. White River Junction, Vt: Chelsea Green Pub.

Norris, F. (August 24, 2012). U.S. Stock Market Leads Most Others in Recovery. New York Times. Retrieved from http://www.nytimes.com/2012/08/25/business/economy/american-stock-market-leads-others-in-recovery-from-crisis.html