For a quick jump at humor, I note that I still am getting humorous comments to my thoughts on this Obama citizenship lawsuit. Today's thoughts, however, turn back to the economy for a moment.
Last week the Congress passed, and the President signed into law a massive "bailout" (or "rescue", depending on how you spin it) plan to save the planet, or economy, if you will. At this point, the problem has become self-perpetuating, and the governments of the world, all of them really, are being forced to react. Whether this is good or bad is beside the question; it's going to happen and the free market is going to have to respond. So far, it doesn't seem to like it very much, or, at the very least, the housing bubble burst a little bigger than anyone thought it was going to. But hey, I'm not an economist, so what do I know.
What I do know is that McCain's suggestion that the government should now buy up people's bad mortgages and allow people to keep their homes is fiscally irresponsible, for several reasons, of which I will explain only one. The question at the town hall meeting was: With the economy on the downturn and retired and older citizens and workers losing their incomes, what's the fastest, most positive solution to bail these people out of the economic ruin?
First, Obama's answer was not very good. So what? It was good enough to show that he has at least given some thought on the issue, and more importantly, McCain's answer was far worse. And if that's McCain's stance on this issue, he deserves to lose. I'll be curious as to whether the exit polls next month have people voting for Obama, not so much for him, but simply against McCain.
The bottom line is that the economy has no realistic chance of recovering over the next 30 days, which essentially means that Obama will win this election. Personally, I think this may be a good thing for the country overall, but I will have to wait to see how good or bad the economy is four years from now before making a final decision on the merits. I rarely use this type of language, but McCain's answer is SCARY. Meaning, it is scary for everybody who makes or wants to make money (that is, everyone). At this point, my time to sit on the fence of this issue is over. Obama will get my vote. (Not that mine will make a difference in the electoral scheme of things).
Here is McCain's scary response, in full:
"Americans are angry, they're upset, and they're a little fearful. It's our job to fix the problem.
Now, I have a plan to fix this problem and it has got to do with energy independence. We've got to stop sending $700 billion a year to countries that don't want us very -- like us very much. We have to keep Americans' taxes low. All Americans' taxes low. Let's not raise taxes on anybody today.
We obviously have to stop this spending spree that's going on in Washington. Do you know that we've laid a $10 trillion debt on these young Americans who are here with us tonight, $500 billion of it we owe to China?
We've got to have a package of reforms and it has got to lead to reform prosperity and peace in the world. And I think that this problem has become so severe, as you know, that we're going to have to do something about home values.
You know that home values of retirees continues to decline and people are no longer able to afford their mortgage payments. As president of the United States, Alan, I would order the secretary of the treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes -- at the diminished value of those homes and let people be able to make those -- be able to make those payments and stay in their homes.
Is it expensive? Yes. But we all know, my friends, until we stabilize home values in America, we're never going to start turning around and creating jobs and fixing our economy. And we've got to give some trust and confidence back to America.
I know how the do that, my friends. And it's my proposal, it's not Sen. Obama's proposal, it's not President Bush's proposal. But I know how to get America working again, restore our economy and take care of working Americans. Thank you."
What scares me about this response is the level of government involvement it implies. Government can renegotiate private contracts? What is this, communist China? And where was this idea last week when the Senate was forcing their rescue bill into the House's tied hands? What is scary is that McCain seems to have abandoned all principle and reason to score a political point. This is not good judgment. And I have convinced myself, after living through Clinton's sexual revolution debacles and this Iraq war that still seems to be me based on the premise that the end justifies the means, that we need a leader with good judgment.
What scares me more is the fiscal price tag to such a proposal. Now, this wouldn't be scary too much, except for McCain's other comments that he doesn't want to raise taxes. On that issue, in addition to the italicized portion above, McCain added this insight into his economic prowess:
"So let's not raise anybody's taxes, my friends, and make it be very clear to you I am not in favor of tax cuts for the wealthy. I am in favor of leaving the tax rates alone and reducing the tax burden on middle-income Americans by doubling your tax exemption for every child from $3,500 to $7,000.
To giving every American a $5,000 refundable tax credit and go out and get the health insurance you want rather than mandates and fines for small businesses, as Sen. Obama's plan calls for. And let's create jobs and let's get our economy going again. And let's not raise anybody's taxes."
These positions are irreconcilable. He says to freeze government spending, save defense, Veterans' Affairs, and "some other vital programs", which is Washington wishy washy nonsense for "everything else." At least Obama tells you that taxes are going up for some people, and in reality, for everyone. The government, and the country, cannot function without everyone sacrificing a little bit. Because of the nature of this particular crisis, that sacrifice will have to come from the wallet.
Now, I agree that there are probably a lot of wasteful programs that could be cut and eliminated completely and that may save the deficit a bit. Similarly, if the IRS went after everyone who didn't pay their legal share of taxes, we probably wouldn't be in debt at all. The problem with both candidates is that they are in favor of big government and government rescuing the ordinary people. The last I checked, most everyone is capable of handling these problems with only minimal assistance, be it from their parents or whoever.
The next four years is going to be bad for us all economically. I would hate to throw another terrorist attack or war into the mix and see how that would drag us down further. The leadership our country needs, however, isn't with a bunch of pipe dreams and mud slinging over who voted for what when and why. It's all about the economy and how we can start fixing it. McCain's plan is economically unworkable, even from a liberal Democratic standard. In fact, it's so liberal, I'm surprised the core of his party aren't rolling over in their graves.
When both candidates propose massive government spending and support the type of government interference that is, admittedly, probably necessary at this point, I am unable to distinguish which one is the Republican candidate and which is the Democrat. The fact that the Republican is advocating for the same principles that his party is rooted against only continues to reiterate my belief that we are not a two party system. And if both candidates are really just spinning the same side of one coin to try and get it to land closer to them, I think this really comes down to whose economic plan and persona will better lead our country out of these financial doldrums and back into some sort of good graces. Unfortunately for us Republicans out there, or at least those who somewhat identify more with the principles of that party, this isn't going to be our year.
But, I am more than willing to read or discuss the reasons why or why I am not right or wrong. Next time, if I remember (or when I get back from this next upcoming trip across the country), I will write a commentary regarding why students who are borrowing money better hit the books if they want to get a good loan rate. I know that if I were a lender right now, I would be renegotiating my future interest rates to be dependent on the average graduate income from that school. Business-wise, it makes great sense. Of course, if you're a slacker, you better change those habits quick.
Read more!
