I was struck during Monday’s so-called debate among the current GOP presidential candidates by the rather cowardly way they took stands based on ideological purity.
They’re all trying real hard to be tough-minded fiscal conservatives, as best exemplified by Mitt Romney’s denunciation of the bail-out of two large auto companies, a move highly controversial at the time but that is generally acknowledged to have saved hundreds of thousands of jobs.
Mitt made it clear he’d have let GM and Chrysler just go under and take their chances with a forced bankruptcy. Ford got through on its own, as we all know.
One can argue it was GM’s and Chrysler’s fault they weren’t in as good a shape as Ford, but that’s gumflapping now. Hundreds of thousands of jobs were at stake because of the goof-ups of the corporate executives, it was one of those situations where society — government — had to step in and avert a worse disaster. The later bankruptcies of the companies were much more well-managed and seem to have worked.
Now, here’s my problem with all this: Right after the panelists all agreed Obama was wrong to save the auto industries — which is a very safe stance to take since they have already been saved – the moderator asked the panel about the housing crisis and all those underwater and defaulted mortgages.
The correct answer from Mitt and the others should have been: Tough noogies, let them fail. Capitalism will fix it all.
But no, they got all nuanced on us, with Ron Paul going on his standard anti-Fed rant, and the others saying the economy needs to be fixed, blah blah blah.
Did any one of them say “Householders who can’t pay their mortgages should be allowed to fail.”
Not that I heard. Going public saying millions of people should lose their homes with no help from the government is bad for votes, so you will never hear them say that, althugh they are happy to pursue policies that will pretty much guarantee that those people do lose their homes.
Which will harm the economy even more, which they will then blame on Obama.
ON ANOTHER TACK : The Washington Post has done its usual good job of debunking some of the outright BS from the debate. Here’s a link (click). I like, especially, how they feel a strong need to blame Obama for the “continuing” recession even though, from a technical standpoint, the recession ended a year or more ago. Claiming the medical care reform act will “slash” 800,000 jobs is another exercise in pure bull cookies, as the link carefully explains.
The recovery, no question, could be better, but we’ve still got a huge load of mortgage debt from the Bush-era housing bubble to eat through before we ever see any hope of something resembling prosperity.