Decision 2012: Obama Advisor Discusses Economic Campaign Strategy

President Barack Obama has proposed a one-year extension in the Bush-era tax cuts for people earning under $250,000 while allowing tax cuts for wealthier Americans to expire. Obama campaign advisor Robert Gibbs said ending the tax cuts for the wealthy would save almost $1 trillion and help reduce the nation's budget deficit. Many economists have said raising taxes or cutting government spending could slow down a struggling economy.

Class discussion: Find news reports on tax and spending proposals by President Obama and his Republican opponent Mitt Romney. How do they differ? Who would each plan help or hurt the most? What would each plan cost? What do economists say about the plans? Find out how "austerity" budgets have impacted European nations. Have U.S. politicians pushed for austerity budgets? Is it a good idea? What happened to the U.S. budget after the Bush tax cuts were enacted?