This Politico article describes economists’ support for McCain.  The article describes how 300 economists support McCain’s Jobs for America plan.  McCain’s press statement, which includes the statement and the list of economists who signed on (Lawrence was suprised to find some signatories from an institution near and dear to his heart.), is here.  The full 15 page plan is here.  Should we abandon our rational analysis of the policies of McCain and Obama, because 300 of our (future) peers endorse McCain’s economic plan?  First and foremost, no.  To abandon our analysis is foolish.  At the Three Economist’s Blog we arrive at our own conclusions!  If anything, this overwhelming endorsement should warrant an even closer inspection, lest we become ensared by groupthink.  Besides, when did someone telling you what to think make you want to actually think that?  Second, the economists’ endorsement (not to be confused with The Economist’s, they have yet to make one) was only with respect to the general ideas of McCain’s plan.  As the article states, economists only signed onto a 403 word statement, which did not mention all the specific proposals outlined in McCain’s more detailed “Jobs for America” plan.  If anything this endorsement is only illustrative of the much encountered situation, “I agree with you in principle, but…”

John McCain recently quipped, “Social Security is a disgrace.”  It was one of those regularly occurring political gaffes that make watching politics so much fun.  I would surmise that he is spinning this as, “what I meant to say was the way in which our government has handled the social security program is a disgrace.”  Only McCain knows, but that doesn’t bar us from analyzing his previous positions and current, written proposals for Social Security.  McCain has taken a vow to reform social security in his first term in office.  However, McCain is as vague about his proposed reforms as a candidate for president can be.  This is a quote from his recently published, 15 page Economic Plan, from page 5,

John McCain will fight to save the future of Social Security, and he believes that we may meet our obligations to the retirees of today and the future without raising taxes. [Read more →]

The third rail of American politics is up next in our look at the policies of Senators McCain and Obama.  In short, social security is a government mandated transfer of money from today’s workers to today’s retirees.  The program began during the Great Depression with the passage of the Social Security Act on August 14, 1935.  There is a very long and detailed, but brief, history on the Social Security Administration’s website which includes such gems as the fact that olive oil was economic security to the ancient Greeks.  [Read more →]

Now it is time to classify McCain’s position on trade.  As stated previously, McCain is a free trader.  The question becomes, how do we classify his outlook to free trade in our newly minted taxonomy?  McCain is a Messianic Free Trader, minus the messianic.  In typical McCain fashion, he bucks classification.  (Of course, you have to wonder whether Lawrence purposefully constructed the taxonomy in order for this to happen.)  He is not a Messianic Free Trader, but he is also not a proponent of Cave Mercatem.  He does not propose restricting free trade with labor or environmental standards.  What he does do is more subtle. [Read more →]

Before we can compare McCain and Obama’s positions on trade, we have to give some background on the trade debate.  There are a whole slew of positions that people take on trade issues.  These stances arise from differing viewpoints on the effect that trade has on everything from growth, wages, the environment, labor standards and unemployment rates.  Let’s lay it all out there.

There are several kinds of “free-traders” in the political world. [Read more →]

According to John McCain’s website:

Ninety-five percent of the world’s customers lie outside our borders and we need to be at the table when the rules for access to those markets are written. To do so, the U.S. should engage in multilateral, regional and bilateral efforts to reduce barriers to trade, level the global playing field and build effective enforcement of global trading rules.

It seems Senator McCain is a proponnent of free trade.  There is a great deal of consternation with regards to free trade, so for McCain to propose a reduction in barriers to trade, he must have good reason.  What are his motivations? Is Senator McCain an ardent free-trader or simply paying the subject lip service? [Read more →]

There is no true consensus among academic economists regarding how the economy should be managed. Indeed, there are lists of impressively credentialed economists supporting the economic agenda of both presidential candidates (see here and here).

Economic modeling is tricky business, [Read more →]

Since we’re about reasoned political analysis here, it is fitting that we begin a series of posts on the 2008 presidential election between Senators McCain and Obama.  We intend to cover the policies proposed by both Senators.  This will include the candidates policies on taxes, trade, energy, health care, education (something near and dear to our hearts, since we’ve been in school so long!), and possibly others.  We’ll try to focus on the economic policies, but that doesn’t mean we’ll leave out the softer issues like gun control, gay marriage, abortion, civil liberties.  Again we welcome reader participation, so if you think one of us is off, by all means, let us know!  We look forward to all the coming discussion.  - 3EcoNBloG

This article introduces John McCain’s main economic advisor.

Interestingly, John McCain has managed to harm his image as a fiscal conservative by outlining his plans for tax cuts in detail, while only being vague about the spending cuts that are supposed to generate the necessary revenue (necessary, that is, if the tax cuts are supposed to be revenue neutral) and various ‘base broadening’ measures (i.e. closing tax loopholes) . [Read more →]