Newswise — The bursting of the proverbial real estate bubble coupled with a mortgage and credit crisis has many Americans murmuring "recession." With 64 percent of Americans harboring unfavorable opinions about the economy, voters are anxious to hear how the presidential candidates will address economic issues, including the housing market, during the October 30 Democratic presidential primary debate in Philadelphia.
Ben Liebman, Ph.D., an economist at Saint Joseph's University in Philadelphia, says that despite the opinion of some Americans, we are not in a recession. "There is some uncertainty due to the tightening of credit following the meltdown in the subprime mortgage market, as well as continuing high gas princes. But the stock market remains strong, inflation is low and the Fed is helping out by lowering interest rates. In fact a recent Wall Street Journal survey of economists found that about two-thirds of economists do not believe we are even headed for a recession."
Of the candidates' specific plans, Liebman says that Clinton has some innovative proposals to change tax codes. "It will be interesting to hear her discuss some of her creative approaches to tax reform during the debate," he says.
With recent food and product safety issues making headlines, Liebman speculates that globalization and free trade will soon become hot button issues during the race to the White House.
"In the '90s we had a somewhat more undaunted optimism about globalization," he said. "Recent challenges to product safety standards and foreign investments have changed the attitudes of many Americans. We're experiencing a shift where globalization is being met with increasing amounts of skepticism."
Dr. Liebman is an assistant professor of economics at Saint Joseph's University. His expertise lies in international economics and applied microeconomics.
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