What polls indicate that tax cuts are the number one campaign issue? The economy as a whole is.
There has already been a redistribution of wealth from Main Street to Wall Street - why is that acceptable?
Obama's idea of 95% of the population getting tax cuts are quite popular and it is what many think will help the economy. This is also why some Republican voters prefer him to McCain. I think they are mistaken because of the social security element of his claim, but that's another discussion for later if an when Obama wins.
In regards to distribution to Wall Street from Main Street (bail out) I'm not in agreement with congress or Bush. I don't like the bail out because I think it doesn't do much. Aren't they asking for more money now? When will it end?
AIG example.
AIG may need more cash due to restructuring - AOL Money Canada
Also it creates a moral hazard. If gambling on the stock market leads to losses but those losses are bailed out by the taxpayer then future gambling will be looked at as not so risky because companies can expect the tax payer to always bail them out.
I essentially agree with you that the economy as a whole is the main issue of the election but I went into more detail of the root causes and I'll list all I can think of for issues:
- low interest rates for a long time that allowed people to get into huge debt. Yes it's partially the public's fault for giving into consumer debt and greed for flipping securities and assets with the belief the market would always go up. Yet politcians usually avoid blaming those people knowing they may lose votes from them. I think Palin talked about living within your own means, and Obama made a comment of Bush saying "let's go shopping". Yet it's still too vague to make any dent. I certainly hope people limit their shopping to something reasonable, but will they?
- lack of regulations for new financial instruments. When debt is created it should be disallowed to be sold in portions to other people via bundled securities that include biased Standard and Poor ratings. Only prideful libertarians would defend zero regulation.
- subprime loans. If people don't have a downpayment and they don't have enough income so mortgage payments are only 30% of their pay then they should look for smaller accomodations or rent until they can save for a bigger downpayment to lower the overall mortgage payments.
Capitalism fails temporarily because of people incurring too much debt (boom) and have to pay it back later (bust). Yet capitalism recovers, if it's allowed to. That's why I tell people to save as much as you can, especially during a boom, so they can handle the cycles better. I also urge to avoid the tax and spend attitude of the government because it just makes it harder for people to save who still have jobs during the recession. That savings creates new jobs and the recovery in the future. The faster the savings the faster the recovery. Savings also creates independence so less people have to rely on the taxpayer and more people will have a nest egg for retirement.
I think McCain's policies of reviewing all programs to find waste areas to cut will help resist the urge to raise taxes and that is a better way of handling the natural recession. The only way to avoid booms and busts would be if all people were rational and not emotional and nobody took on debt they couldn't handle, but that would be a perfect system. I think perfect systems don't exist. Everytime there is a crisis we need to add on what we learned and not revert to failed redistribution policies of the past. Eg. New Deal, Great Society. These systems invented in the 30's and 60's were supposed to eliminate poverty but they didn't. As long as somebody can take their handout and snort cocaine with it the choice factor in peoples decisions will be the main motivator for their success or failure. I mean isn't that what we are all arguing about? How much of a role is there for government? The appropriate solution is somewhere between the extremes of Marxism on the left and Libertarianism on the right.