EDITORIAL: Boom and bust

By | Tuesday, October 7, 2008

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"Government is not the solution to our problem - government is the problem." No phrase by Ronald Reagan ever sounded more true than when the Senate took the $700 million bailout bill and made it into an $850 million bill before returning it to the House.

Rasmussen polling reports as of Oct. 3 that across a wide range of varying people and political groups, 67 percent of men and 52 percent of women agree with Mr. Reagan's statement today. It would have been better for the legislation to be dismantled or tossed aside; instead, the Senate Democrats packed even more earmarks into the bill. In the meantime, economists have argued over whether a bailout is good since it will mean socialism for the long term as banks are stabilized for the short term. Surely, the Senate could have constructed a bill without earmarks for children's wooden arrow manufacturers? And what about the other costly bills that have already been passed for the auto industry, Fannie Mae and Freddie Mac, Bear Stearns, and AIG. Lawmakers must think American taxpayers are not paying enough.

Only a few courageous Republican senators in toss-up races voted against the bill, according to the Charlie Cook Report. Sen. Roger Wicker of Mississippi and Sen. Elizabeth Dole of North Carolina all voted against the bailout before it was sent back to the House. Sen. Jeff Sessions of Alabama, Sen. Thad Cochran of Mississippi, Sen. Mike Enzi and Sen. John Barrasso, both of Wyoming, all voted no from solid seats as they run for re-election. Sen. James Inhofe of Oklahoma voted no in a pretty safe race although, not a solid one. The Senate Republicans must think this bill is important to voters for so many to have voted for it during their re-election. Yet, Sen. Kay Bailey Hutchinson of Texas voted against the bill as expectations build of a gubernatorial run.

Frederick Samuelson, citing Milton Friedman in a Newsweek article, "Is this a replay of 1929?" pointed out that the "financial crisis" today is not the same as 1929. Today's economic calamity is largely the fault of failed congressional oversight of the financial systems. But look who's left paying the price.

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