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CHANGE We Don't Need

Well we finally know what ‘CHANGE’ means. By his own admission, Obama has a problem with the Constitution and the American way of life. Overwhelming evidence should convince all but the willingly deluded that he wants to use the IRS to ‘spread the wealth around’.

Obama’s comment to Joe the Plumber about plans to redistribute income is only the tip of an iceberg that includes a 2001 radio interview where Obama calls for ‘major redistributive change’ in order to ‘fix’ the Constitution’s ‘blind spot’.

Equal opportunity apparently is not good enough for Obama. He prefers equal outcome.

The United States of America is the most successful national on earth to which millions flock each year, both legally and illegally, for two basic reasons – opportunity and freedom. These unleash the awesome power of human potential by allowing pursuit of happiness through individual self-interest. This has resulted in advances too numerous to mention and an unmatched standard of living.

Everyone, poor and rich alike, benefits from the advances brought about by creative individuals, freedom, and rational self-interest. Virtual every modern invention, from lifesaving drugs to computer software, was inspired by profit, not public welfare. We have done so well that over 50% of America’s poor have cable TV and over 40% own their own homes.

Government can supply none of these benefits, as it does not inherently have anything to give. Only individuals create wealth. Government can only give what it has taken from individuals.

The Framers knew government was a necessary evil as there is no freedom without order in society. They were wise enough to realize government needs limitations to preserve liberty.

  • Freedom + Equal Opportunity = Inequality. Ignored too often is the fact that the necessary by-product of personal freedom is inequality. Offer individuals an equal opportunity at something, give them the freedom to make choices they feel appropriate for their circumstances and the result will be different outcomes.
  • Equal outcome is tyranny. A perfectly equal society is not the natural state of human beings. Given varied desires, priorities and strengths, equal outcome can only be achieved through enforcement.
  • Inequality is life. The fact that I may have more trouble clearing a hurdle than my neighbor in order to achieve identical goals is not the fault of the government. It is called life.
  • Inoculating against life. Politician’s dishonest efforts to achieve equal outcome under the guise of equal opportunity smacks of “inoculating against life”. Government not only has no place in determining what is best for each of us but it is also incapable of making those determinations.

The current economic crisis illustrates the effects of equality over liberty. Obama wrongly asserts that unregulated capitalism caused the economic crisis. Rather, it was government meddling that upturned free market incentives.

In an effort to force equal outcome, the well-intentioned 1977 Community Reinvestment Act (CRA) was given specific goals in 1995 that forced banks to make bad loans in order to avoid punishment from government regulators.

Obama has admitted to wanting more of the same! The Democrat controlled Congress provides no barriers to that end.

John McCain is not perfect but he is not at war with the fundamental underpinnings of what has made America the greatest nation on earth.

The decision is easy – McCain is clearly the better choice.
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Liberal Democrats Crash Economy

Why tell the truth about the current mess when it is so easy to blame greedy lenders and evil capitalists? You don’t have to be editor of the Harvard Law Review to see the heart of the problem is banks lending money to people that had no business getting a loan.

Barack Obama calls for more regulation. He is wrong. The free market did not fail. Democrats beat it to death with a hammer.

Remember that every penny the government spends comes from the sweat of an American taxpayer. The top 50% of taxpayers’ makeup 97% of all personal income tax paid. Private business powers the federal government and self-interest – the universal drive to better ones position in life – powers business. A free market is democracy in action where dollars spent act as votes for goods and services and bad decisions are punished in the marketplace.

Why would greedy banks make risky loans? Because liberal government policies not only forced them, but made it profitable by allowing them to dump the risk on the American taxpayer.

  • 1938 – FDR’s New Deal creates Fannie Mae to buy home loans and sell them to Wall Street, with a guarantee that they will be paid, whether or not the original borrower pays.
  • 1977 – Community Reinvestment Act (CRA) established by Carter empowers the FDIC and other regulators to punish banks that do not lend to lower income demographics. These same demographics are prone to spotty credit history, job stability, and loan-to-value ratios. Obama worked for ACORN, one of many organizations that spent decades pressuring banks to make risky loans.
  • 1995 – Clinton revises the CRA to allow risky ‘subprime’ loans to be packaged up and sold to investors on Wall Street.
  • 1998 – Clinton appoints Franklin Raines as head of Fannie Mae, who with Freddie Mac, bought bad loans and bundled them with good ones. Wall Street was glad to buy them because they were insured by the American taxpayer.
  • 1998–2003 - Housing boom fuels more bad loans.
  • 2003 – Fannie Mae/Freddie Mac reveal they’ve been cooking the books and don’t have a clue.
  • 2003 – Bush proposes overhaul of housing finance industry. Democrats shoot it down. Barney Frank, among others, says, “Fannie Mae and Freddie Mac are not facing any kind of financial crisis.”
  • 2004 –Franklin Raines, Chief Executive of Fannie Mae, is accused of manipulating earnings in order to maximize his bonus. He settles and walks away with $52 of his $90 million compensation thanks to ‘creative’ accounting.
  • 2005 – McCain sponsors legislation to overhaul financial regulations in the housing market, specifically “the enormous risk that Fannie Mae and Freddie Mac pose”.
  • 2005 – Obama does nothing, having received over $120,000 from Fannie/Freddie in less than four years.
  • 2008 – Enough bad decisions gone unpunished allow the multitude of bad loans to bring down those “too big to fail”.

The only reason investments return anything is because they have risk. Government meddling and over regulation in specific areas inverted the natural order of a free market, encouraging bad behavior and punishing good.

Now the ordinary taxpayer pays the bill while those who indulged in too much house get off with a sweet refinance courtesy of those who followed the rules.

Liberal Democrat’s entitlement philosophy brought this about. Obama doesn’t get that. He won’t be getting my vote this November either.
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