One popular theory of explaining how individuals choose how to cast their votes says that they consider their own pocketbook and vote with their personal economic interest at stake. This could be called “economic interest voting,” “pocketbook voting,” “rational economic voting,” or an exaggerated myth. If the average person really voted with her or his own economic interest as the chief consideration, John McCain would be polling around 20% right now and he would lose every single state in November unless he drastically changed his policies.

JH showed this telling graph on his blog a few days ago. It shows how people’s income would go up or down (by percent) based on their income percentile (click to enlarge).

All but the top 20% would see their net income go up more under Obama’s economic proposals than McCain’s, although McCain is typically seen as the thrifty tax-refunder while Obama is seen as the tax-and-spend-liberal. Clearly, these labels are incorrect.

Obama’s tax plans raise taxes on the top 1% or so in various ways while giving the majority of the economic help to those at the bottom of our economy. McCain gives a token amount of help to those at the bottom (who really need it!), but saves the majority of his huge tax cut for the extremely wealthy.

If I weren’t already so cynical, it would shock me that so many lower and middle class voters mistakenly believe that McCain is the best candidate for their own economic interest. This comes from a combination of ignorance and propaganda. Republicans shamelessly campaign on issues like killing the “death tax,” cutting capital gains taxes, eliminating the “double-taxation” on dividends,” enacting the “fair tax,” and other similar economic issues. One thing they do have is a seemingly endless supply of catch phrases. However, typical Americans are severely mistaken if they believe that these catch phrases translate into benefiting typical people like themselves. While Republicans campaign for the economic interest of the super-rich, Democrats fight to defend Social Security, extend SCHIP, and send tax breaks to the working class.

Why don’t voters vote in what appears to be in their economic interest? Mostly because there are other issues that get more press and are more easily understood. Also, most people are unaware of which policies are actually in their economic interest. It isn’t because people like getting the short end of the economic stick from the leaders they elect.