This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Romney's Fiscal Plan Still Lacks Detail

Stocks in this article: BAC

NEW YORK ( TheStreet) -- Mitt Romney said Sunday that a change in fiscal policy, not monetary policy, would make a significant difference in the job market, but the Republican nominee's view of that change may not offer the most efficient plan.

While President Obama mostly has respected the separation of powers between the Federal Reserve and the Executive Branch, Mitt Romney has repeatedly questioned central bank action.

"I don't think that easing monetary policy is going to make a significant difference in the job market right now," Romney said in an interview on NBC's "Meet the Press." "I think what the nation needs is a change in fiscal policy. A different structure to our economic positions."

Romney has consistently pitched that fiscal policy, instead of monetary easing, would be a surefire way to reinvigorate the jobs. He suggests ideas like capping spending at 20% of GDP, taking steps toward a smaller government and reducing the overall federal workforce by 10%.

"The fiscal stimulus has not been particularly good at providing jobs, so future administrations will have to ensure that stimulus is much more labor intensive than it has been," said Tanweer Akram, a senior economist at ING Investment Management. "There has to be public works programs and large-scale employment programs, and incentive for the private sector to hire people."

Akram believes the next administration will have to provide tax incentives and greater certainty about regulation from Congress in order to promote private sector growth.

Romney has outlined some of these ideas on his Web site, but has left voters with an ambiguous blue print.

For example, on regulatory burdens, Romney has said he would repeal Dodd-Frank and replace it with "streamlined, modern regulatory framework," without reference to what constitutes a modern regulatory framework. He has also stated that a Republican administration would review and eliminate all Obama-era regulations that burden the economy -- again, there is not a mention of which regulations he may scale back.

On taxes, the GOP nominee is more specific as he has said he would cut the corporate tax rate to 25% and repeal the corporate Alternative Minimum Tax, or AMT.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs