Who Makes Policy Campaign 2016 Edition

A Quick Look at Secretary Clinton’s Proposed Economic Policies

Secretary Clinton’s proposed economic policies can be found at https://www.hillaryclinton.com/issue.

Moody’s Analytics predicts that “Secretary Clinton’s economic proposals will result in a somewhat stronger U.S. econ­omy. Near-term growth is supported by the stimulus provided by her spending plans in combination with much stronger foreign im­migration. Increased government spending, particularly more infrastructure investment financed primarily by higher taxes on the well-to-do, acts as an economic stimulant.

Greater government spending adds directly to GDP and jobs, while the higher tax burden has an indirect impact through the spending and saving behavior of high-income house­holds. This mitigates the near-term negative impact on GDP and jobs since these house­holds will not reduce their spending one-for-one in response to their higher tax bills and will use their savings and other financial resources. The higher minimum wage also crimps employment.

Longer-term growth under Secretary Clinton’s policies is somewhat stronger be­cause on net they expand the supply side of the economy—the quantity and quality of labor and capital needed to produce goods and services. Most significantly, immigra­tion reform, would greatly increase the size of the workforce and support stronger productivity. Her plan to increase spending on the nation’s infrastructure will also boost business competitiveness and productivity. Her paid family leave plan would lift labor force participation, while increased spending on college education and early childhood education would raise the educational at­tainment of workers.”

Author: o.oyewo

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