In early September, Democrat-dominated, government-sponsored home-lending giants Fannie Mae and Freddie Mac imploded. Thanks primarily to those two entities’ deliberate efforts to lower credit-approval standards in the entire industry, and their 15-year “fraud by design” campaign of deceiving the credit rating agencies about the nature of the loans they had securitized, financial market mayhem ensued. Not letting a crisis go to waste, Democrats seized the opportunity to stampede the president and Congress into creating the Troubled Asset Relief Program (TARP). It purpose was supposedly to buy up bad housing loans.
Less than two weeks later, in a complete shift from what the American people were promised, one that we’re supposed to believe was unplanned and totally unrelated to anything preceding it, Treasury Secretary Hank Paulson pointed a figurative gun to the heads of large bank CEOs, demanding that they accept government “investment” in their institutions. Thus began the left-inspired statist encroachment that has since moved into more areas than can be named, some of which include auto manufacturing, small agriculture, education lending, and even school bake sales.
The statist “solution” for improving the economy they brought down was Keynesian “stimulus” — y’know, the strategy which was tried and failed with FDR in the 1930s and in Japan in the 1990s. We were supposed to keep a straight face when they told us: “This time it’s going to work.”
It becomes more reasonable with each passing day to believe that Pelosi, Obama, Reid, and the White House’s group of economic lamebrains knew it wouldn’t work, and didn’t care. Why? Because almost two years and over $3 trillion in debt later, after stimulus has clearly failed, it’s still the only “solution” they offer.
The so-called “tax-cut compromise” unfortunately agreed to by enough Republicans to enable passage is, of course, not a tax cut at all. It only achieves a continuation of what has been the income tax status quo for eight years, and only does so for another two, instead of the five or more needed to significantly influence business behavior. Worse, it contains more failed Keynesianism, including $57 billion in additional unemployment benefits. The economy may marginally improve, but almost no one believes that the unemployment rate will significantly come down any time soon.
The millions of unemployed who are legitimately trying to find work and can’t, and whose families continue to suffer as a result, are where they are largely because of the POR Economy’s fundamentally flimsy, stagnant substance. It’s almost impossible to believe that this genuinely bothers them, because if it did, they’d try something that works.