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Tuesday, March 31, 2009

Obama Inherits Economy From Democrat Congress

Two years of Democrat control gave us the economic mess that we are in today.

In the posts below, John Galt aptly points out where Democrats and Republicans share the blame for fed banking policies and bailout fiasco's. But, there's more to the story. What changed during the last two years to exasperate the economic crisis?

As I've pointed out before, Democrats own the housing market mess. The CRA is their invention. ACORN – where Obama learned how to "organize communities" – exists to use the CRA to force banks to give loans to those not likely to pay them back. (They also exist to elect Democrats even if they need to fabricate voter registration cards, but I digress.) Democrats propped up Fannie and Freddie to ease the pain of defaulted loans – and to reap the benefits of thankful execs via campaign contributions. With the latest stimulus bill, ACORN, Fannie, and Freddie were given even more money to encourage more would-be home owners to take out loans they might not pay back.

So what happened during the last two years?

  • Democrats finally killed the effort to reign in Fannie and Freddie.

  • Democrats have made it clear that taxes will go up – that the cost of doing business will go up. The clear message to business big and small – "save your money now, don't expand, don't hire."

  • Democrats created an artificial energy shortage by preventing American energy companies from reaching rich deposits of crude oil off our shores. Gas shot up to $4, diesel up to $5. The cost of doing business went higher.

  • Cap-and-trade and other so-called green legislation gained ground with a greater likelihood of passage under a Democrat administration. The cost of doing business and the motivation to save money now continues to rise.

  • If $4 gas wasn't a big enough blow to Detroit, Democrats declared war on their best selling vehicles and America's favorite mode of transportation, the SUV, by raising C.A.F.E. standards. (For this one, Bush deserves some of the blame for not vetoing it.)
Democrats have tried to blame President Bush for the economic crisis. But, as described above, they obstructed Bush's initiatives and now they own the consequences. President Obama didn't inherit this mess, he helped create it.

During the last six weeks we have learned about a bigger problem. Unabashed socialists in Congress feel no bounds in remaking this great country into another Europe. Freedom as we know it will diminish greatly the longer Democrats control Congress. To this end, defeating them in 2010 is paramount.

But, don't mistake my zest for defeating Democrats with a blanket support for Republicans.

President Bush deserves a great deal of credit for rescuing us from 9/11 – both in national security and in growing the economy by empowering individuals with more of their own income. But, he made mistakes elsewhere, including those outlined by John Galt. These are mistakes that McCain might have repeated. There's a lesson here for Republicans. Go back to your roots, rediscover Reagan and conservative principles of government.

There are two parallel battles before us. First, strengthen our conservative ranks among Republican candidates to be better prepared for 2010 (and beyond). Second, win more hearts and minds among the public for limited government over socialism Obama style.

2 Comments:

Blogger John Galt said...

Where G-Man and I agree is in saying that both Dems and Republicans are to blame. Where he and I disagree is in his assessment that we would make progress by regaining Republican control of Congress, at this time, with the current Republican leadership. From my sage source, I recap:

"Republicans controlled BOTH Congress and the White House from 2001 on, when the worst of the financial damage was being executed.
Bush got elected in 2000, and promptly set about expanding govt spending hugely while cutting income taxes. "No earmark left behind" was the operative principle for the Republican Congress, and Compassionate Consumption was the White House mantra. They stood staunchly behind Bob "Go out and buy a Hummer" McTeer at the Dallas Fed, and Alan "I never saw a derivative that needed regulated" Greenspan.

It's a fact that Clinton switched off Glass-Steagall, but it was Republican appointees that snoozed thru their terms at the SEC and CFTC, and it was Republicans that granted Hank Paulson's request to raise the limits on bank leverage, while he was Lord of Goldman Sachs.
As the Atlantic article points out, the real government (the bureacrats and regulators) is crammed to the rafters with ex-Goldman alumni and other former banksters. It was Republican Chris Cox that refused to follow up any of the countless tipoffs that came in on Bernie Madoff's $65 billion Ponzi scheme. It was Cox that never enforced Reg SHO until it was the Wall Street banksters being sold short.

Republicans have joined with Democrats in a plutocracy. It's a government made up of the wealthy and well-connected, and it governs in the interest of those same people and no one else. All political rhetoric aimed at voters is just an attempt to corral enough votes to allow the victors to take charge of divvying up the spoils."

4/02/2009 9:08 PM  
Blogger John Galt said...

BTW, this crisis was already built and waiting to unfold by 2007. This is part of the reason I think blaming it on the last 2 yrs of Dem control is completely shortsighted, in a historical, backward-looking sense.

4/03/2009 1:35 PM  

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