A Voter's Guide to the Economy

By Kristina Dell, Alexandra Silver

Record home foreclosures and a worsening credit crunch have voters looking for help. The economy is near the top of every campaign agenda, even though none of the candidates have ever balanced a state budget or run a company. No President can magically fix what ails this economy, but White House policies--on taxing and spending, trade and regulation--will set the stage for recovery. Here's where the candidates stand on five key issues: [This article contains a table. Please see hardcopy of magazine.] DEMOCRAT Hillary Clinton DEMOCRAT Barack Obama REPUBLICAN John McCain 'I would take immediate, comprehensive action to fix the housing crisis.' Calls for a $30 billion emergency fund to help states combat the foreclosure mess; gives lenders new incentives to restructure mortgages 'I would enact my mortgage agenda to ensure that families can stay in their homes.' His proposal would give lenders incentives to buy or refinance existing adjustable-rate mortgages and convert them to 30-year fixed ones 'Eliminate the AMT, which the middle class was never intended to pay.' McCain wants to end the alternative minimum tax, which hit approximately 4 million taxpayers in 2006, up from 414,000 in 1995 NAFTA Should the trade pact be modified to add environmental and labor protections? Yes She says these protections should be enforced just like those dealing with commerce Yes A leaked memo implied his stance was "political maneuvering"; Obama denies the claim No Says open markets create economic opportunity UNEMPLOYMENT INSURANCE Payrolls shrank by 63,000 in February. Should the jobless get more time on assistance? Yes Her stimulus plan would include $10 billion to extend unemployment insurance Yes Would add some part-timers and give a temporary extension to those who have used up eligibility No Favors a total overhaul of unemployment insurance instead, using the funds for retraining HEDGE FUNDS As the financial crisis deepens, should hedge funds be more closely regulated? No But wants to "reassess our regulatory framework" and close a loophole for offshore tax havens No But calls for more transparency in the entire financial industry No Says existing laws are enough to improve transparency and accountability on Wall Street BUSH TAX CUTS Should the 2001 and 2003 tax cuts be rolled back for families making more than $250,000? Yes Would use these funds to offer new health- and child-care tax credits Yes He would instead provide a $1,000 income tax credit for families to offset payroll taxes No Wants to make the tax cuts permanent MORTGAGE HELP The government is bailing out banks. Should it rescue home owners facing default? Yes Favors a 90-day halt on subprime foreclosures and a five-year freeze on subprime interest rates Yes Would help people refinance, using a $10 billion fund from stiffer fines on fraudulent lenders Maybe Would help those who were bilked but not others who can't afford their mortgages