In an era dominated by peace, citizens are more inclined to look into economic growth and development. In particular, individuals look at how economic growth will manage to make their lives or that of their loved ones better. In this perspective, a candidate aspiring to seek a position of power must provide their intended proposition on tackling economic issues. On the case of candidates seeking re-election, their previous record is scrutinized and compared with that of the contender. In the prevailing times, the biggest issue is how an individuals can be able to affect the per capitata income and output. Per capita income and output are termed as the most accurate measure of estimating growth. In particular, the two measures reflect the standard of living of citizens in a particular country. To this end, this paper aims to looking at policies that influence the per capita income and output in a country. In addition, the paper will look into how two candidates policies’ , Mitt Romney and Obama, compare on the addressing on the issues of per capita income and output.
In this perspective, per capita income refer to the amount of income that a single person earns in a definite area. Per capita output measures the average output with respect to a single individual in an economy. Also, per capita income and output can be used in the evaluation of the quality of life and living standards of citizens. It is arrived at by dividing the country’s national income or Gross Domestic Product with the population. However, this measure has a direct limiting factor in its measure. The limiting factor arises due to the existence of extreme values. Some individuals earn excessively more than others. An average would thus be a biased measure.
With respect to policies, there exists diverse number of policies that can influence both measures. One of these policies is one that affects employee compensation. This is majorly derived from an employee’s salary. In addition, this captures aspects of benefits that accrues to an employee outside his or her salary. Some of the aspects include those of health benefits. Another policy affecting a country’s per capita income is that affecting corporate profits. Other policies are those that affect the amount the a country spends. The spending in an economy is an indirect measure of the spending in an economy. This is based on the fact that the total output in an economy reflects the total amount of money spent. In addition, policies affecting the importation of exportation of products in an economy tend to have an influence on the two measures. Other policies include those affecting extraction of natural minerals, use of Intellectual Property Rights, and landlord’s rential income. In this perspective, some direct policies affecting per capita income include those of the healthcare bill. Also, those affecting unemployment, taxation, foreign policy, and military spending.
In the case of the two candidates, both have advanced their policies that are at the heart of influencing the standard of living of Americans. One of the most contentious issues is that in regard of healthcare. Obama’s proposition on the issue of healthcare has been one of a controversial nature. Many politicians have felt that his propositions have lacked in various fronts. Obama’s healthcare plan, medicare, borders on the provision of affordable healthcare insurance for all Americans. The plan works with the previously existing system with minimal changes. However, the plan eliminates the influence of insurance companies on an individual’s communication with his or her doctor. In the case of Romney, his proposition borders on the repealing of affordable healthcare act. In its place, he proposes the inception of a block grant system to states. However, his proposition would leave millions without insurance in the coming year. This proposistion would have a negative impact on the lives of the masses and thus affecting the quality of life of American Citizens.
Another policy affecting per capita income and output is the issue of taxation. Obama’s tax policies are bordered on the reduction of tax burden for the middle class. An example of this is the inception of the American Opportunity Tax Credit and Tax reforms aimed at improving medicare. Another tax policy is the Buffet rule. This rule ensures that citizens pay their taxes in relation to their earnings. Households earning higher wages end up paying more taxes than those with lesser income. This measures ensures fair tax payment distribution in the economy. This tax reforms reduction aim at making the life of the citizen better off. However, Romney’s tax reforms are inclined towards a reduction of taxes for the rich. This would ensures that the rich would continue to get richer. Thus, the standarad of living of the lower level earners would be negatively affected by the proposed policies.
Also, an issue in contention between the two candidates is that of wages for the American workers. According to Obama’s propostion, a need for raising the salaries of the masses is essential. The president aimed to reach this conscensus by increasing the minimum wages for the population. In addition, Obama proposes the aspect of equal pay for all genders. Obama has shown his views by supportin the equal pay act of 1963. This would ensure that the salaries of the average American citizen. However, Romey opposes the increase in minimum wages for the masses. His position is that the minimum wage should be raised subject to the level of inflation in the economy. This would ensure that the wages of the masses remain the same despite the increased level of inflation. However, his propositions is not bound to raise the standard of living for the citizens. This is because his propostion results in a zero change; more of a zero-sum game. However, Obamas’ proposition includes the continued increased and then checking the inflation. This proposition would mean the citizens income increase relecting a certain change in the disposable income of the consumer. This would lead to an increased spending in the economy. The essence of increased spending would reflect a raise in the standard of living of the citizens.
In a nutshell, it is essential that candidates advance policies that can afford to change the life of citizens. This is through advancing policies that can affect the existing living standards of citizens. A change in the living standards is generally reflected by a change in per capita income and output. Despite their shortfall, the two measures can give a near accurate measure of the situation. The two candidates’ policies on wages, healthcare, taxation, and jobs have a direct impact on per capita income and output. This is because the policies have a direct bearing on individuals income and output and, thus affecting the ability to spend.
Works Cited
Fox News Network. Obama, Romney battle over economic policies in first presidential debate. 4 October 2012. Web Site. 14 November 2012.
Miron, Jeffrey . Romney's economic plan has the edge. 18 October 2012. Web Site. 14 November 2012.
Obama for America. Economy. 2012. Web Site. 14 November 2012.
The White House. Jobs and the Economy: Putting America back to work. 2012. Web Site. 14 November 2012.
