Showing posts with label reaganomics. Show all posts
Showing posts with label reaganomics. Show all posts

Friday, June 06, 2008

What it would take to make me vote Republican...

(Citizenship, for a start...)

If you'd asked me a week ago, I'd have said Senator John McCain would come off better in the McCain/Obama November showdown.

But as former Prime Minister Harold Wilson admitted, 'a week is a long time in politics.'

A week later, I think I've got it figured out - and believe the election will go to Barack Obama.

That being said, I'd consider voting for McCain if he could just keep that damn party of his in check. I like McCain. I think he's an honorable and independent politician who represents, in his own stuffy Republican way, real change.

But to make me support McCain, he'd have to make some alterations:

Dump the Social Conservatives: The Republican party is supposed to be the party of liberty and constitution. When it was founded by Thomas Jefferson, his political philosophy was one of personal freedom. These days, the Republican party seems dominated by faithful fascists who want to control every aspect of the American way of life.

Limiting civil rights for gay people. Forcing religious doctrine into the classroom. Censoring freedom of speech in the interests of 'family values.' There is not a single constitutional amendment [Except the 2nd one - Editorial Bear] the social conservatives are unwilling to trample on - all in order to turn America into neat, twee, homogenized Christian Disneyland.

Politically, the social conservatives are dynamite. Evangelicals represent upwards of 80 million Americans and their vote can win or lose elections (just ask John Kerry.) That doesn't change the facts, however. The social conservatives are hypocritical, fascist and unAmerican. Until the Republicans return to their roots and shed these political parasites, they remain unsupportable.

Fix the Damn Budget! Hypocrisy again. The Republicans rant that Democrats will raise taxes - yet our last three Republican presidents have nobbled the economy and crippled the working and middle classes with higher taxes (or rampant inflation.)

The philosophy of the Republican party - and this dates back to Thomas Jefferson as well - is a small federal government. The smallest possible, existing only to organize the operations vital to a country's survival. Things like an effective army, a postal service, federal highways (although even those Jefferson was against.) By keeping federal government to a minimum, the tax burden on American citizens would also be kept to a minimum.

Yet essential to this idea was a government that operated effectively. Instead, we have a bloated federal government that spends far beyond it's means (the taxpayer will feel the burden of the Iraq war for decades to come) and the operations it takes responsibility for are mired in bureaucracy and inefficiency.

If John McCain wants my support, he has to fix Bush's mistakes. The federal government needs to do it's job cost-effectively. No more loans. No more deficits. No more bankrupting and mortgaging off of American assets. If the Republicans honestly want us to trust them with the responsibility of running our nation, prove that they can balance a cheque-book first.

End the Fiscal Dogma - If another Republican raves about Ronald Reagan, I will slap them. Reaganomics was a farce. Ronald Reagan's idea of tax cuts for the rich 'trickling down' to the working and middle classes has been proven not to work. Back when Reagan was slashing his rich friend's tax burden, payroll taxes for the average American actually went up.

Low taxes will stimulate the economy - but not if you give them to the rich. The rich save their extra money, so it doesn't stimulate the economy at all. Only by giving tax cuts to the working and middle class will more money actually be pumped into the economy. Middle class Americans actually have to spend the money they get - on gas, clothes, food and utilities. Giving 100 working class Americans $1,000 will see more money put back into the American economy than giving 1 rich American $100,000. Yet the Republican party is too stupid (or too politicised by rich people) to see this. As a result, the poor make less (the bottom 90% of Americans saw a dismal 3% increase in income) while the rich make more (the richest 10% saw their income raised by 31%.)

I'm not suggesting any socialist rubbish. I'm not advocating taxing the rich any more. I don't want to redistribute wealth. I want tax cuts, that's all. I want an efficiently run government to reduce the tax burden it places on it's citizens - specifically it's middle and working class citizens.

When it comes down to it, there's no more Republican philosophy than that.

In the Mean Time...

Pipe dreams.

When it comes down to it, that's all my ranting comes down to. The fact is, the Republican party isn't going to change. They're not going to realise overnight what a farce they've become and how removed they are from the party of Jefferson and later Lincoln.

Like the oil industry it's so entrenched with, the Republican party has a (generally) successful strategy for success and they're not interested in changing it - even if they are vaguely aware that the resources they've relied on for so long are drying up.

Until reality bites, I'm going to have to support Obama. Not that he isn't without his faults - and not that the Democratic Party isn't almost as stupid as the Republican party. For many people, Barack Obama and the Democrats offer the possibility of change. As far as I'm concerned, they just offer the lesser of two evils.

I'll leave you with some wise words from the great American himself - highlighting a problem that has plagued American politics since the day it was conceived.

"A democracy is nothing more than mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine." Thomas Jefferson

Thursday, January 17, 2008

Economics even I can understand...

I've got vague memories of the Reagan (and in England, Thatcher) years.


I don't remember much - but I do remember England being swept up in the after effects of 87's Black Tuesday and millions of homeowners ending up in the dodgy financial situation of having negative equity.

They'd borrowed thousands to purchase their homes - and the sudden plummet of the housing market left them owing far more then they could ever recover even if they sold their house.

It was a pretty sticky situation and should have taught us all an important lesson.... But instead, America's teetering on the brink of a similar recession right now.

The culprit? The sub-prime mortgage industry.

In order to 'clean up' a potentially lucrative corner of the market, greedy banks like Merill Lynch and Citibank have been offering fantastic mortgage packages to slightly shaky customers. Huge loans that left the borrower struggling to make the monthly repayments.

The gamble could have paid off - but throw in plummeting house prices and sky-rocketing inflation and the 'on paper' profitability of the sub-prime market has suddenly turned into a slew of foreclosures and bankruptcies.

So instead of cleaning up on the sub-prime sector, the mortgage gambles have cleaned the banks out. Merill Lynch posted 14.1 billion dollar loses this quarter just a few days after Citibank wrote down almost $10 billion.

And the result?

Thousands of layoffs - some people speculate the after-effect of Citibank's disastrous losses could see as many as 29,000 people unemployed.

More foreign bail-outs - leaving more of America's industry in the hands of shadowy middle-eastern investors.

It's a very unhappy picture and the skyrocketing inflation and miserable financial outlook has left America on the brink of a recession - which will likely drag the entire world economy down with it.

What have we learnt?

Apparently, nothing.

I'm no economist, but I can't ignore the fact that Black Tuesday and this recent scenario came on the coattails of two terms of Republican presidency.

President Reagan was occasionally blamed (either rightly or wrongly) for contributing to 87's stock market crash through 'Reaganomics.' He turned America from the world's largest international creditor to the world's largest debtor nation, increasing the deficit to a whopping 3 trillion dollars.

President Bush turned a surplus of $86 million into a deficit of $434 million and increased America's national debt to just under $9 trillion dollars.

Wouldn't it nice to have a presidency that ran the US Government more like a responsible housewife than a sailor on shore leave? To spend only what they could afford to?

If somebody hold told the sub-prime borrowers to think seriously about their financial situation - or not been dumb enough to lend them the money in the first place - perhaps this inevitable disaster could have been avoided.

I saw it coming - and I'm not even an economist. You have to wonder what those well-paid pundits on Wall Street were thinking when they gave the thumbs up to a clearly ill-considered project like plundering the sub-prime sector.

The ripples made by the sub-prime splash are likely to effect every American - and for some time to come.

Every time a Republican candidate goes on TV and extols the wonders of 'Reaganomics,' I have to wince. The Republican party is meant to represent 'small government' and fiscal conservatism. Instead, every Republican presidency in the last 28 years has represented the complete opposite.