By: Ron York
Today, we find ourselves in the age of financial insanity. Decisions are being made on the basis of feelings rather than facts. Fear has vanquished reason. Just like a person on LSD, future actions cannot be predicted. I do not know what to do, but I do know what not to do. President Hoover and Congress addressed the financial markets crash of 1929 based on two general objectives:
1 - Fiscal Responsibility
2 - To save jobs and businesses
They got just the opposite. Here are the four things they did that we want to avoid.
1 - Restrict the money supply
2 - Cut government spending
3 - Raise taxes
4 - Pass punitive tariffs
Restrict the money supply
Ben Bernacke will not let this happen regardless of who the next president is (it's Obama, this week sealed the deal). The chairman is an expert on the economic depression of the 1930's. We are safe here.
Obama and the Democratic Congress will raise taxes. A dumb move, but it plays to the class envy crowd who are big Obama supporters - liberals and enigmatic college professors. Obama will bring in Robert Reich and his fellow socialist economist who think that Cuba really works. They will raise taxes, especially on the wealthy - everyone over $20,000 income. Socialism is economic syphilis - it rots the brain.
Cut government spending
This is not going to happen. There is no turning back, Even McCain would not touch this (he will not have the chance). Tom Coburn would, but these two guys running for president are not Tom Coburns. To be fair, government spending has been about 22% of GDP for many years. Obama will try to increase government spending. He says he won't, but it like that old Chuck Berry song "She say she don't, but you know she do."
Pass new tariffs
Looks good on paper, but bombs in actual practice. Obama would probably do some of this. Who knows what McCain would do (it does not matter, he's D.O.A). The knuckleheads at the AFL-CIO and the National Association of Manufactures (NAM) really believe tariffs are a good idea. The NAM crowd are all McCain supporters - they will be in political purgatory for the next four years. The AFL-CIO are squarely behind Obama. They will call in some of their chips to get higher tariffs. Tariffs only result in trade wars, which hurts the global economy, which hurts workers in the USA. Basic economics should be part of the mandatory curriculum in grade school. It is amazing how many economic illiterates there are in this country.
Either candidate's platform would do major harm to the economy. We can forget about McCain. This past week's activites concerning the panic sunk John McCain's chances. Obama will be the next president. Look for a repeat of the Clinton administration for the first year - liberal insanity. I sure hope Obama wises up like Bill Clinton did but it could be a repeat of Jimmy Carter. What we need is a Lyndon Baines Johnson, but we are going to get Henry Wallace.