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Wednesday, October 08, 2008

Obama Shows Little Faith In Americans

Sometimes it takes a day for the impressions of a debate to sink in. On the following two points, it struck me how Senator Obama demonstrates more faith in government than in the American people.

Mortgage Loan Meltdown
Obama perpetuates the Democrat deception that this meltdown is the fault of an unregulated free market. This is an outright lie. It is also a classic example of Democrat deceit by associated kenard.

We all know that conservative Republicans oppose excessive regulation of the free market. We also know that the lack of oversight of Fannie Mae and Freddie Mac led to the mortgage crisis. Therefore, Democrats seek to blame Republicans for opposing regulation of free market lenders. WRONG!
  • Excessive regulation of free market lenders got us into this mess. Democrats, in their infamous wisdom, thought it would be a good idea to buy more votes by forcing banks to give loans to people who cannot afford them. They forced these lenders to give away more risky sub-prime mortgages or face federal penalties. Today's economic crisis is a shining example of why we need to keep Congress out of the free market.

  • Fannie and Freddie did need more oversight (a.k.a. regulation). But, Fannie and Freddie are Government Sponsored Enterprises (GSE's). By definition, they are NOT part of the free market. It isn't more free market regulation that we needed, it was more regulation of government interference that was necessary.

  • The failure of Fannie and Freddie was not due to Republican efforts to deregulate. Fannie and Freddie failed because Democrats opposed further regulation of their campaign cash cow. Democrats had aggressively blocked Republican efforts to reign in Fannie and Freddie.

  • Obama also perpetuates the myth that this crisis failed due to Bush economic policies. As I just demonstrated, it failed due to Democrat meddling into free market lending. To the contrary, the Bush economic policies are directly responsible for the Dow surpassing 14,000 and unemployment dipping to an all time low near 4% -- it is responsible for enabling us to survive this crisis!
Go Shopping
Obama also invoked 9/11 for political gain. (I thought Democrats opposed politicizing 9/11.) He ridiculed President Bush's appeal to the American people to support each other by supporting the economy. Obama chastised Bush for telling the country to go shopping. Clearly Obama doesn't understand basic economics.

Al Qaeda tried to destroy our economy by attacking the World Trade Center. In the aftermath, we stopped buying tickets for air travel. Sure, this is to be expected considering the nature of the attacks. However, it wasn't Al Qeada's attack that nearly collapsed the airline and travel industry, it was the fact that Al Qeada scared many Americans to cease traveling by air.

President Bush was right to call for Americans to go shopping. If brevity is the soul of wit, this was the heart of our recovery. When you go shopping, whether for goods or services, you support the livelihood of fellow Americans. You feed more financial resources into the hands of fellow Americans who can, in turn, reward you for your labor. This freedom to leverage your buying power to reward fellow Americans for hard work, and to be rewarded for your own, is the secret to American prosperity.

More to the point, our economy rebounded from 9/11, not through more government legislation, but through Americans actively participating in the economy -- by shopping.

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