Mariah Andrade
Obama vs. Romney Economic Plans
PLCY 704
6/24/2022
Economic Plan
Mitt Romney and Barack Obama both had differences regarding their views of
economics. There is still a divide regarding whose economic plan would have been more
beneficial to the United States. Romney's economic plan had five major points: “a $4.8tn tax cut
spread over the next 10 years; a proposal to cut government spending to less than 20% of
national output; energy self-sufficiency; better schools; and a tougher approach to America's
trade relations with China.” (Guardian News, 2012) Many believed that Romney’s plan was
unrealistic in regards to the integrity of an anti-Beijing plan. This was in consideration of the fact
that China owned a third of the bonds sold by the United States to finance its debts.
In addition, Romney proposed cutting non-security discretionary spending by five
percent. “In a recent CNBC interview, Romney said that he would limit certain tax incentives
``so that the highest-income people continue to pay the share that they're paying now." He added:
"I'm not looking for tax breaks for high-income folks, but I am looking for more money being
kept in small business so we can hire more people and pay better wages." (Ransom, 2015)
President Obama’s economic policy included calling for “strengthening trade, generating
one million manufacturing jobs by 2016, and stemming the growth of college tuition. And, in a
nod to the economic plan he announced last year, Obama repeated his goal to shave more than $4
trillion from the deficit over the next decade. He also renewed his call for raising taxes on the
wealthy.” (Ransom, 2015) He elaborated on cutting the corporate tax rate from thirty-five
percent to twenty-eight percent while cutting taxes for the United States-based manufacturers
even more. He believed that in order to build a strong economy, tax breaks should be given to
companies that create jobs in the United States, not overseas.
Stockman showed how there was cronyism directly linked to Mitt Romney’s economic
policy. Romney adopted the Ryan budget, in which “The social insurance core of the welfare
state, Social Security and Medicare, accounting for nearly $19 trillion, or 55 percent, of all
projected domestic spending in the next decade. Hiding behind the phony rigmarole of trust
funds and insurance argot, Ryan gave social insurance a free pass through 2022, notwithstanding
that a trillion of this huge expenditure would go to upper income and wealthy retirees who hadn’t
earned it and didn’t need it.”. (Stockman, 2013) With that being said, this meant that people who
actually deserved and needed the help from the government would take a 2 trillion dollar cut
over the next ten years. This also meant that states would be responsible for taking over the
responsibilities of medical, food, and income assistance with thirty percent less money.
Stockman goes on to say, “Candidate Mitt Romney’s whiff on the looming fiscal crisis,
however, was just a warm-up. Even more consequential was his complete failure to grasp that
free-market capitalism was failing in America because it had been fatally corrupted by two
decades of Wall Street coddling by the Fed and nearly four decades of worldwide floating money
and central bank monetary inflation.” (Stockman, 2013) Romney and his team were in agreement
that the bailout was necessary and was the answer to the crisis. However, it can be seen that these
actions fueled crony capitalism as businesses were made aware that there were no consequences
to their risky behavior.
Obama signed the American Recovery and Reinvestment Act, which was an economic
stimulus package that aided in ending the Great Recession. This bill increased consumer
spending and brought back the confidence that was needed to boost the economy. It was also
meant to establish trust in the financial industry.”In a 2009 report, the CBO projected that ARRA
would stimulate gross domestic product by 1.4% to 3.8% for the fourth quarter of 2009. The
stimulus was successful in the 2009 GDP. The economy grew 1.7% in the third quarter and 3.8%
in the fourth quarter. That's a big improvement over the first quarter's 6.7% drop and the second
quarter's 0.7% decline.(Amadeo, 2021)
Differences on Energy
Another policy that differs between Romney and Obama is their stances on energy. While
their stances are different, they are also similar. Obama released a Five Year Outer Continental
Shelf (OCS) Oil & Gas Leasing Plan. The plan focused on lease sales in the Gulf of Mexico, the
central Gulf, and the eastern Gulf. The plan also included lease sales off of Alaska, which was a
decision that was protested by environmental groups due to the fact that there was a large chance
of spills with no protection. There was full protection for the Atlantic and Pacific coasts from
lease sales. “However, the Obama Administration has proposed seismic surveys off the Atlantic
coast to assess potential oil and gas resources, which could set the stage for future energy
development in the region. The President frames his position on offshore drilling as part of an
‘All-of-the-Above’ strategy for American energy that includes fossil fuels, renewable sources,
and research & development.” (Surfrider Foundation, 2015)
Romney’s energy plan included significantly increasing domestic energy production. This
included a five-year offshore leasing plan that “aggressively opens new areas for development
beginning with the coast of Virginia and the Carolinas.” (Surfrider Foundation, 2015) This idea
was significant in that drilling had not happened in these areas ever before. Romney also
included his support of increased drilling in the Arctic Ocean. This superseded what was
included in Obama’s plan. “Romney’s energy plan included a limited focus on renewable sources
and conservation, and failed to address the issue of climate change and related impacts.
According to a USA Today report, Mitt Romney’s campaign and a super PAC backing him have
received more than $15 million in donations from oil, coal, and other energy interests, many of
which would benefit from Romney’s energy plan.” (Surfrider Foundation, 2015) This can be
seen as a form of crony capitalism.
Overall, both Obama and Romney supported the increase of offshore drilling in the
United States. However, Romney had a more aggressive approach that would include more
drilling in already prominent areas and new drilling in areas that remained untouched. It can be
seen that Obama had more focus on sustainability and renewable energy. On the other hand,
Romney was more focused on expanding the resources in the United States regardless of the
consequences to the environment.
Biblical Statesman Perspective
It can be seen that Romney did not embody a biblical statesman perspective, but was
more concerned with business than the well-being of those in society that needed help.“Romney
rejects the idea that Christianity requires a response toward the disadvantaged by society. This
provides a context for his comment that he “…isn’t concerned about the very poor.”He sees
some need for social safety nets (which he believes are adequate), but denies that there is any
fundamental concern about the justice of market capitalism itself.” (Holder, 2012)
Obama said that “America’s workers and America’s families and America’s small
businesses deserve the security of knowing that here, in this country, neither illness nor accident
should endanger the dreams they’ve worked a lifetime to achieve.” (Holder, 2012) This is an
example of how Obama maintained as a statesman there should be some accountability to
maintain the well-being of society and still be able to grow the economy, which is what a biblical
statesman perspective should have.
Amadeo, K. (2021, December 31). Did Obama's stimulus plan work? The Balance. Retrieved
from https://www.thebalance.com/what-was-obama-s-stimulus-package-3305625#citation-1
Guardian News and Media. (2012, October 11). Mitt Romney's economic plan splits opinion in
Massachusetts. The Guardian. Retrieved from
https://www.theguardian.com/world/2012/oct/11/romney-economic-plan-opinion-
massachusetts
Holder, R. W., & Josephson, P. B. (2012, August 21). Obama, Romney, and Christian realism -
society. SpringerLink. Retrieved from https://link.springer.com/article/10.1007/s12115-
012-9580-6
Offshore drilling: Obama vs. Romney. Surfrider Foundation. (n.d.). Retrieved from
https://www.surfrider.org/coastal-blog/entry/offshore-drilling-obama-vs.-romney
Ransom, D. (2015, February 26). Obama vs. Romney: A tale of two economic plans.
Entrepreneur. Retrieved from https://www.entrepreneur.com/article/224394
Stockman, David. The Great Deformation: The Corruption of Capitalism in America.
New York: Public Affairs, 2013. ISBN: 9781610395236.
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