Obama, a pure Keynesian, believes that government spending helps the economy grow.
The president feels that the recession is caused by a lack of demand and that the government can fill the gap in demand by government spending. Further, the candidate believes that increased taxes on the wealthy do not have an impact on economic growth.
Therefore, Obama wants to increase spending and increase taxes through stimulus bills. Similarly, he plans to increase employment by additional spending on infrastructure.
However, Obama does plan for targeted tax cutting for small businesses to encourage them to grow and hire new employees.
Overall, I suppose that, according to Obama, there is such a thing as a free lunch.
Overall, I think that Obama's policies when it comes to raising taxes and increasing the governments role in the economy are a bad thing. Let the private sector grow itself, the government should keep its hands off.
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