Is it the economy or the government that is broken? September 18, 2008Posted by Nevada Pundit in Barack Obama, Congress, Corporate World, Democrats, Economy, John McCain.
Dems are using economic fear tactics stating that the economy in general is broken. No, it isn’t. The financial sector is broken. Now granted, this is the one section that has the potential to spread to other areas quickly and by all means needs to be fixed ASAP, but manufacturing, energy, technology and the service industries are all showing growth. Of course this answer doesn’t really provide Obama with what he needs to paint McCain as the bad guy, so Obama did what Obama does best, he exaggerates the situation.
Well here are some interesting tidbits to keep in mind as Obama goes to war with the greedy Wall Street CEO’s and fixes this problem that he is convinced that only he can fix. Sen. Dodd (D) is the main beneficiary from lobbying effort by Fannie Mae and Freddie Mac, Sen. Obama is number two on that list. Biden’s main campaign contributor is MBNA and, as we all know by now, his son has received quite a bit of money from MBNA for lobbying activities. Biden’s voting record really does prove that lobbying works.
The democrat’s hero, Bill Clinton, is the one that signed legislation forcing banks to ease up lending restrictions which lead to the irresponsible loans that were made by the banks. Freddie and Fannie funneled huge amounts of lobbying money into the pockets of the democrats to ensure continued support of these programs by the government. Unfortunately, this is one that the republicans blew too. It is all of the government’s job to remain diligent to issues that may have a negative impact on the American people and all of government failed us.
So what’s the plan? Well Obama’s plan is to allow politicians, the same ones who do such a bag up job keeping the books straight in D.C., influenced by the same people who got us into this mess, to come up with new government regulations on the finance industry. This is the equivalent of randomly placing duct tape around a collapsing building and hoping it doesn’t fall again in the future. McCain’s plan, while much better, still isn’t perfect. McCain wants to form a commission to find out where the weak spots are and put in proper regulations that will actually make a difference. This is equivalent to strategically placing plaster on the weakest parts of the building, but it is still the same old crumbling building.
Let’s look at this building. It is created from a hodgepodge pile of regulations dating back more that 100 years. Few of these regulations were ever made proactively, most were made as a reaction to problems that already existed and none were made as part of a cohesive plan. This building made of government regulations is the shack surrounded by the huge skyscrapers that is today’s economy. It is time to tear it down and rebuild. It is time to set in place a system of regulations that is relevant to the economy of today, one that is cohesive, effective, adaptable, and doesn’t smother the free markets ability to grow. Having more regulations is not the answer, having the right regulations is.
The last thing that is needed is to have a government watchdog group to pay attention and be diligent to the economy. Congress has a tendency to pass laws, shake each others hands, pat them selves on the back for a job well done, and then forget about what they just accomplished. Nothing stays the same in this world. The government needs a constant watch and to use consistent diligence on the issues that they are responsible for. This is a part of their job that they are failing at and until this is done the world will continue to change around them and the purpose of government will continue to be playing catch up. It is now the 21st century and the country needs a 21st century government.