I normally try to avoid getting too political on this blog. But I feel like this economic rescue package that keeps going the rounds in Washington right now, is an extremely important issue. I feel like this decision will be as pivotal for the future of America as the Gulf of Tonkin resolution. The difference in this case, is that the decision is being made by the legislative branch. Before yesterday, I was convinced that our system of elected officials was all but broken. But after Pelosi’s bill was struck down, I was elated to read that the majority of the hedging parties who eventually voted nay, did so because of the overwhelming correspondence from their constituency, opposing the item. Some of them went as far as to say that they feared voting to pass the measure would prevent them from being re-elected. Wow, could it be that elected representation still works at the federal level? I guess more than anything, this post is to urge people to get involved. Send your House Rep. an email stating your position on the issue. While you are at it, send one to your Senators. If you aren’t sure who your elected officials are, you can look them up at Congress.org, or house.gov. You may need to exercise a bit of patience if you try to send an email through the House website. It is pretty bogged down right now. It actually became so overloaded yesterday that it went offline. Please, no matter where you stand on this issue, don’t just sit on the sidelines and let the economic future of this country be decided without voicing your opinion. [dismounting soapbox].
Happy Rosh Hashanah
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Comments
6 responses to “Happy Rosh Hashanah”
I really don’t know enough about this stuff to argue very well one way or the other, so don’t take this as confrontational in any way. All I know is what every expert I hear on TV is saying. And that is that this bill is absolutely necessary to avoid a complete financial meltdown. If people and businesses are unable to access credit, isn’t that a bad thing? I realize the bill isn’t ideal. The ideal would be that it never got to this point in the first place. But now that we’re here, what’s the alternative?
I guess what I’m asking is why do you oppose it so strongly, and what do you think is a better alternative? I’m not trying to start an argument. I just seriously want to know.
The talking heads are speculating. That is all that anyone can really do about this plan. Part of the problem is that each version, so far, has been so voluminous and packed with earmarks (is it super easy to sneak in your side plan, when you can hide it under a pile of $700B), that no body really knows what it is going to do. The only thing that is for sure, is that The Federal Government is going to have to come up with $700B from a budget that is already overextended, one which we have borrowed money from countries like China, just to pay interest on. The is no guarantee that even after the passage of such a plan, that we won’t spiral into a depression. Empirically, a shot in the arm is not what fixes the economy. In fact, empirically, the economy stabilizes when people stop trying to artificially stimulate it. There is no doubt that there are perilous economic times ahead. But for someone to say that this “plan” is what we absolutely need, and that we will be sunk without it, is a flat out lie. Debt and overleveraging is what started this mess in the first place. Transferring the ownership of bad promissory notes from the private sector to the Federal Government (assuming that is even what the legislation will do) doesn’t do anything except pass the burden on to the taxpayer, a long with anything else that the shady worms in Washington can slip into the bill, for funding. Finally, having the Federal Government as a creditor to the defaulting borrower’s in this country is outside of the scope of what a “democratic” government’s function. Is the Federal Government going to suddenly put on the hat of a savings and loan bank and take on those fiduciary responsibilities? Will the Federal Government be subject to derivative suits if there are improprieties? I doubt it. I’m not a conspiracy theorist or anything, but this plan allows the Federal Government to put the capitalist market in a choke hold. I don’t know about the rest of the country, but I have been less than satisfied with the way the Federal Government has managed money. Why would we give them more control, by letting them hold all of this bad paper, that they will probably never even be able to collect on, while the productive taxpayers foot the bill for interest payments to China? My position is, we shouldn’t.
I think I can honestly say that that’s the first intelligent opposing argument I’ve heard since this thing was proposed. Thanks. I’m still not entirely sure where I stand. I’m just hoping I can keep my job for a little while longer.
Collin,
Here is one article which lists some of the pros and cons of the bailout plan.
http://www.enterstageright.com/archive/articles/1008/1008bailoutprocon.htm
It doesn’t go into a lot of detail but does a good job of listing some of the pros and cons of the bailout.
Good article, Carl. I feel like he really distills down my sentiments in his last paragraph.
“If the current crop grow up seeing the government saving the taxpayers grief through being patient, then they’ll soak up the virtue of financial patience by osmosis – just as today’s movers and shakers sucked up the deficits-are-good credo when children themselves. President Bush promised that only the U.S. government has the “patience and resources” to extract full value out of currently radioactive securities, mortgages and other bank assets. If the Treasury lives up to that promise, we might see unexpectedly prudent and patient high achievers knocking on Wall Street’s door fifteen years hence. “
Jake,
If you want a laugh from a dark humor sort of way, I heard this on Marketplace on NPR this evening.
http://marketplace.publicradio.org/display/web/2008/10/01/confusion/
I particularly like the part about the unicorn and their names.