Sour economy top issue in US presidential race

AFP, Washington

The US economy has become the number-one issue of November's fast-approaching presidential election, and whoever ends up controlling the White House will face pressing budget and fiscal challenges. Some analysts say a flailing economy can benefit a challenger from the party that does not control the White House as voters can assign blame for an economic downturn to a president's party, as occurred in the 1992 failed reelection bid by then-president George Bush, President George W. Bush's father. "When it comes to voting, unemployment doesn't matter. Inequality doesn't matter (in the United States). Growth of real after-tax income does matter. The stock market does matter," said Alan Reynolds, a senior fellow at the Cato Institute, a free- market think tank. Reynolds said a rising stock market can boost the reputation of the party in power, but he said the perceived weakenss of the US economy at present could benefit the Democratic presidential hopeful, Senator Barack Obama. In such a climate, it is not surprising that Obama and his Republican rival, Senator John McCain, have sparred hotly over economic matters, taxes and high gasoline prices. Obama has called for a second economic stimulus package while McCain says he favors fresh tax cuts. Each candidate insists his plans would help fire up rocky economic growth. Americans are very troubled about their economic well-being, according to the results of a Pew poll published in late July which showed that 54 percent of respondents think the US is in recession while 18 percent view it as a depression.