OPINION: Obama Sees Economy the Right, and Left, Way

Sen. Barack Obama (D., Ill.) returned from his travels abroad only to receive sour economic news here at home.

The White House announced that the federal deficit for fiscal year 2009 would hit $482 billion, which would total 3.3% of gross domestic product. An increasing deficit could hamper economic growth.

Responding to the challenges, Obama organized a bipartisan meeting of economic leaders to find solutions. The meeting focused on short-term economic stimulus and long-term plans to improve productivity and wage growth.

Obama and presidential rival Sen. John McCain (R., Ariz.) have traded barbs over how to jumpstart the economy. Obama favors more government intervention, such as a stimulus package, housing bailout and middle class tax cuts. He would pay for his programs by raising taxes on those earning more than $250,000.

Obama's economic plans have paid off with voters in two respects. A recent MSNBC/Wall Street Journal poll had him leading McCain on optimism about the future and being compassionate enough to understand the average individual's problems.

At his economic summit, Obama kicked things off by acknowledging the complexity of the situation:

"American families are facing tough economic times as the costs of healthcare, gas and even basic groceries skyrocket but wages remain stagnant, the dollar remains weak and the housing market continues to decline. Our economic problems are so interconnected and complex that we cannot focus on just a single economic problem in isolation or consider policies from just a single perspective - instead America needs a broad-based strategy to jumpstart the economy in the short run while addressing our long-run challenges."

Obama's solutions include nearly universal health care, a housing rescue plan and another economic stimulus package.

McCain prefers a different road. He often speaks in favor of free markets and free trade. He has endorsed President Bush's tax cuts -- after opposing them in 2001 and 2003 -- and is now suggesting additional cuts. According to an analysis by the non-partisan Tax Policy Center, his tax policies favor the wealthy. The analysis also noted that his tax cuts add to the deficit, though McCain has spoken strongly against deficit spending. He commented on the deficit numbers on Monday:

"Today the administration released another reminder of the dire fiscal condition of the federal government -- a budget deficit for this year of $389 billion and a sad legacy for the American taxpayer: a deficit estimated at $482 billion next year. There is no more striking reminder of the need to reverse the profligate spending that has characterized this administration's fiscal policy."