Summary of Sarah Palin's Economic Views:
As Governor of Alaska, Sarah Palin demonstrated her position on energy and oil prices, a balanced budget, cutting taxes, and spurring economic growth. However, this position didn't give her experience on many important national topics, such as free trade, military spending and any stimulus to the financial crisis. Nevertheless, she provides a good balance to Presidential Candidate John McCain's economic platform on most issues.
Palin Did Not Address True Cause of High Gas Prices:
As Governor, Palin sought to spur economic growth and increase energy supplies by supporting drilling in the Alaska National Wildlife Refuge (ANWR). She signed a contract for a $26 billion natural gas pipeline with TransCanada Corp. To help Alaskans with high gas prices, she gave a one-time $1,200 tax rebate and repealed the state’s 8-cents-a-gallon gasoline tax for a year. The funds for these consumer rebates came from a windfall profits tax she imposed on oil companies last year.
However, these measures didn't address oil market speculation, which is the true cause of high gas prices. Palin's stance on ANWR was the opposite of McCain's energy platform, who supported increased exploration of alternative energy sources. (Source: WSJ, "Palin Shores Up Some Economic Credentials for McCain," August 29, 2008)
Palin Supported a Balanced Budget and Tax Relief:
Palin's commitment to fiscal responsibility would be good for the economy. Before becoming Governor, Palin was Mayor of Wasilla, where she cut property taxes 60% while spurring economic growth. She sold a $2.1 million corporate jet bought by her predecessor, and cut $231 million from Alaska's $550 million capital budget. She would try to cut the federal debt. (Source: WSJ, "Jet That Helped Defeat an Alaska Governor Is Sold," August 25, 2007; Alaska Journal of Commerce, "Lawmakers cringe over governor's deep budget cuts," July 8, 2007)
Her support of a balanced budget balanced McCain's deficit spending mentality, if he would have listened to her. His experience in Washington would balance her lack of experience in national politics, which could have rendered her ineffective. Before she became Governor in December 2006, Palin was Mayor for only two terms, and served on the city council before that.
Palin and Free Trade:
Governor Palin's views on national free trade policies were unknown. However, that was not an issue, as Senator McCain's support of free trade agreements will have spurred economic growth. (See John McCain and Trade)
