'It's the Economy, Stupid' Rings True Again

ANALYSIS | "It's the economy, stupid" were the words uttered by famous Democratic strategist James Carville during the 1992 presidential election. The phrase was simple, yet effective in surmising what was on Americans' minds in the early '90s. Almost 20 years later, Carville's words once again define the No. 1 issue of the day -- the economy. And more specifically, jobs, taxes, and the debt.

A year out from the 2012 election, here is how the biggest issues are playing out.

Jobs

In a time of 9 percent unemployment, it is no surprise that creating jobs has dominated the Republican discourse. Herman Cain attempted to kill two birds with one stone, by selling his 9-9-9 plan as both a tax plan and jobs plan. Before the sexual harassment scandal rattled Cain's campaign, it was 9-9-9 grabbing national headlines.

Former Massachusetts Gov. Mitt Romney and Texas Gov. Rick Perry played their own version of catch phrase, with Romney's theme being "Day one, job one" and Perry countering with, "cut, balance, and grow." Both Romney and Perry appease the right in their plans, with cutting taxes, reducing government regulations, and expanding domestic energy production being the cornerstones of their plan. Romney's camp predicts a 4 percent annual growth in the U.S. economy, and the creation of 11.5 million new jobs over four years, according to the Associated Press. Perry promises 2.5 million new jobs in an economy that hasn't seen such numbers since 2006, according to the Washington Post.

Taxes

If anything has fueled some interesting ideas, it is reforming America's cumbersome tax system. Cain and Perry have opted for a flat tax, which has been a popular idea among Republicans in the past. Cain's plan for a 9 percent business tax, 9 percent individual tax, and 9 percent national sales tax was packaged in a commercial way, showcasing the former pizza CEO's business savvy. Perry, not to be outdone on the flat tax race, has proposed an option based tax system. In his plan, Americans would be able to choose to stay under the current tax code, or switch to a 20 percent flat tax.

According to Mitt Romney's website, Romney plans to "hold the line on individual income tax rates and eliminate taxes on interest, dividends, and capital gains for low- and middle-income taxpayers." Romney's plan is more traditional than are Cain's and Perry's, so the former Massachusetts Governor will have problems gaining momentum from the plan. Like so much with Romney, there is little to get excited about, but little to get outraged about as well.

Debt

One issue that unites the GOP candidates against President Obama is the nation's debt. Both Romney and Perry have proposed similar plans. Both want to get deficit spending below 20 percent of GDP, while also cutting hundreds of billions of dollars in government spending. The problem: Neither has provided enough details to transform the imaginary numbers into reality. For example, Romney hasn't explained how his voucher program to reduce Medicare costs would work. With the deficit spending exploding under President Obama; the debt may the most vulnerable issue for the President.

With a year left until Americans decide if they want a change in the White House, Republicans have tried to differentiate themselves from both the president and each other. Romney is still the man to beat. He must prove that gimmicky economic plans will not solve the nation's problems and maintain the status-quo perception that he is the safest pick for the GOP.