By now, you have probably heard the term "Obamanomics." It has been used to describe the economic plan of Barack Obama, who is the President Elect of the United States. Obama will be sworn in as president in January, 2009 and plans to enact a different economic plan than the country has been following for the past 25 years.
Throughout recent history, the United States has experienced times of great wealth and great poverty. The first Great Depression hit the country in 1929 and the United States did not get back on its feet until the end of the 1930s. Although the crash of the stock market in 1929 often is thought to be the start of the depression, there were other depressions throughout that era that occurred throughout the 1930s as the country struggled to become financially stable. The New Deal was proposed by President Roosevelt at that time and promised "a chicken in every pot." The idea was to institute a higher tax for those who made the most money, lessening the burden on those who made less. This was a way to give the average worker a chance to make a living. Prior to the 1930s, there was not a middle class as we know it today.
Obamanomics is a reintroduction of the New Deal with some different changes that are made for the world of today. Back in the 1930s, we did not have the technology that we have today and companies did not outsource jobs to other countries as a way to save money. Obamanomics will stop tax cuts for companies that outsource in an effort to stop American companies from sending jobs elsewhere. In a free market environment, you cannot make outsourcing and importing illegal, but you can stop tax advantages for those that practice this type of business as a way to entice businesses to keep the jobs in the United States.
In addition to stopping tax cuts for companies that outsource, Obamanomics returns to the idea that those who make the most money should have to pay higher taxes. Many critics of Obamanomics call this a form of socialism, but in order for the working person to be able to afford the necessities in life, they need a break from constant increasing taxes. Right now, the average American worker is paying about 35 percent of their salary in taxes. Obamanomics will lessen the burden on those who make less than $250,000 a year. This may enable working class people to be able to afford necessities like food, clothing and shelter. As it stands, those who work in working class jobs often have to work two or three jobs to be able to afford to live. This was not always the way it was in the United States. Obamanomics is a plan to impose greater taxes on those who can more likely afford it and lessen the burden on those who cannot.