John McCain Fails Econ 101: Another No Good Very Bad Week for John McCain

April 18, 2008 -- Though he has admitted he doesn't understand economics, John McCain tried his hand at an economic proposal for our country this week. Now the reviews are in, and they're not very good. News accounts and expert analyses show McCain's proposals lack details, his numbers just don't add up, and he's the wrong choice for America's future.

John McCain: Photo by dbking (CC)

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While the economy continues to slide, McCain is out of touch and offers a third Bush term of recycled economic policies that got us here in the first place.

It should come as no surprise then that a recent Gallup poll shows McCain trailing Democrats in "purple" states that were competitive in 2004--key pick-ups for any candidate in November. Looks like McCain's road to the White House is nothing more than a dead-end. [Gallup, 4/17/08]

Below is a selection of the bad reviews McCain received this week on his economic plan.

Where Are The Details?

No Specifics. The Washington Post wrote that there were "No Specifics. McCain pledged to get rid of the "'myriad corporate tax loopholes that are costly, unfair and inconsistent with a free-market economy,' but he offered no specifics." [Washington Post, 4/16/2008]

"Not Enough Meat." CNN's Ali Velshi said that McCain's plan had "A lot of bread, not enough meat." [CNN American Morning," 4/16/08]

"Still No Theme." The Wall Street Journal editorialized, "The weakness -- especially heading into a general election amid a struggling economy -- is that his pudding still has no theme." McCain "tried to show voters he feels their pain. What they need and want to hear is a speech that shows that he understands and is willing to fight for the policies that produce prosperity." [Editorial, Wall Street Journal, 4/16/08]

Details "Noticeably Absent." CNN's Dana Bash said that "There were some things in this speech that were noticeably absent. ... First of all, his pledge earlier to balance the budget in his first term or any discussion at all of the billions of dollars that go to fund the war in Iraq" [CNN's Situation Room," 4/15/08]

McCain's Numbers Just Don't Add Up

McCain Doesn't Understand Arithmetic. The Washington Times editorialized that "Regrettably, Mr. McCain's entire balanced-budget fiscal policy, such as it is, almost certainly is built on smoke and mirrors….we also understand arithmetic, and we're concerned that Mr. McCain does not…His math doesn't add up. Mr. McCain needs to provide much more detailed information about how he intends to balance the budget." [Washington Times, 4/18/08]

McCain Not Explaining How To Pay For Tax Cuts. The Wall Street Journal wrote "But Mr. McCain draws criticism from budget-balancers for refusing to provide offsets to his biggest-ticket item: extending the Bush tax cuts past their scheduled 2010 expiration. That alone will cost about $270 billion a year… The Bush tax cuts included an expiration date when they were passed, and if they are renewed without offsetting cuts, the lost revenue will add to the deficit according to standard budget accounting rules." [Wall Street Journal, 4/16/2008]

Math Doesn't Work. NBC News reported that "critics and some economists argue McCain's math is wrong, that his plan would tilt toward the wealthy, swell the deficit and not trim enough." [NBC Nightly News, 4/17/08]

How Can He Pay For It? ABC News broadcasted that "critics question how McCain expects to pay for the wars in Iraq and Afghanistan, enact massive tax cuts, and balance the budget. McCain says he can do it." [ABC World News Tonight, 4/15/08]

Where Will The Money Come From? Marc Ambinder headlined his post "McCain's Economy: Where Will The Money Come From?" and noted that McCain didn't really answer the question. [Marc Ambinder, TheAtlantic.com, 4/16/08, http://marcambinder.theatlantic.com/archives/2008/04/mccains_economy_where_will_the_money_come_from.php]

Economic Conservatives Say "Foolish." Conservatives "don't like McCain's gas tax holiday -- they find it foolish and they wonder where McCain would find the money for it." [Marc Ambinder, TheAtlantic.com, 4/16/08, http://marcambinder.theatlantic.com/archives/2008/04/mccains_economy_where_will_the_money_come_from.php]

"Earmarks" Aren't Magic Solution - There Just Aren't Enough To Pay For His Spending Plans. McCain "wants to cut some $160 billion in discretionary spending out of a budget" but only 11% is 'earmarks.'" [Washington Wire, 4/16/08, http://blogs.wsj.com/washwire/2008/04/16/mccain-proposes-deep-federal-sp...

McCain Numbers For Earmarks Don't Match Reality. The Wall Street Journal wrote that while McCain suggest there are $60 billion in earmarks to cut, "There was only $18.3 billion per year for earmarks in the fiscal 2008 budget, according to Taxpayers for Common Sense, a nonpartisan watchdog group." The Atlantic's Marc Ambinder similarly noted that "the most I've seen in terms of an earmarks tally has been about $20b dollars." [Washington Wire, 4/16/08, http://blogs.wsj.com/washwire/2008/04/16/mccain-proposes-deep-federal-sp... Marc Ambinder, TheAtlantic.com, 4/16/08, http://marcambinder.theatlantic.com/archives/2008/04/mccains_economy_where_will_the_money_come_from.php]

What Balanced Budget?

McCain Reverses Self On Balanced Budget. By outlining tax reductions in his economic proposals, the New York Times observed, McCain was, "backing away from his pledge to balance the budget by the end of his first term." There was "a decidedly less hawkish note on deficits," the Times continued, "as McCain called for spending cuts but did not mention balancing the federal budget." McCain said in Wisconsin in February that he would balance the federal budget by the end of his first term as President, but "seemed to reconsider that on Tuesday, saying at a news conference later in Villanova that "economic conditions are reversed" and that he would have a balanced budget within eight years." [New York Times, 4/16/08]

McCain Changes Mind On Balanced Budget. The Wall Street Journal reported that "Sen. McCain's new-found enthusiasm for tax cuts could undermine his reputation as antideficit budget hawk. Given the new proposals, it was unclear how Sen. McCain will achieve his previously stated goal of eliminating the federal deficit by the end of his first term, and he didn't mention that in his speech Tuesday…Sen. McCain later told reporters that it might take two terms to achieve that goal of eliminating the deficit. He has also said that some of his tax cuts might need to be phased in." [Wall Street Journal, 4/16/2008]

McCain's Plan Is Just Bad For America

"Under a McCain Presidency, National Debt Would Soar As it Has Under Bush." According to a Boston Globe editorial, " Under a McCain presidency, the national debt would soar as it has under Bush." [Editorial, Boston Globe, 4/16/2008]

McCain's Gas Tax 'Holiday' "Smacks Of Poll-Driven Gimmickry." The Wall Street Journal reported, "Less credible is Mr. McCain's call for Washington to suspend the 18.4-cent-a-gallon federal gasoline tax between Memorial Day and Labor Day to help consumers hit by high oil prices. There are few tax cuts we don't like, but this one smacks of poll-driven gimmickry. If Mr. McCain wants to cut the price of gasoline, he should tell the Federal Reserve to stop fueling the commodity boom by cutting interest rates." [Editorial, Wall Street Journal, 4/16/2008]

McCain Promised Help For Working Americans, But Proposals Reveal More Aid For Corporations. According to the Washington Post, revealing his economic agenda, McCain "offered sweeping rhetoric about the economic plight of working-class Americans, promising immediate assistance even as he spelled out a tax and spending agenda whose benefits are aimed squarely at spurring corporate growth." [Washington Post, 4/16/2008]

Source: DNC