Monday, October 6, 2008

The Shift

In this election America will make a significant political shift from the center-right position to the center left or maybe just left. We will elect the most left-leaning politician ever. It has become apparent that John McCain will lose on November 4 and lose big. It will probably be an electoral landslide for Obama. This is disconcerting but it is reality. The Mortgage Backed Security (MBS) induced financial crisis was the last nail in the Republican’s coffin. The president and his party, right or wrong, get the blame or the credit for the state of the economy. The Republicans cannot recover from this. Not with a president as unpopular as this one.

Sarah Palin initially brought hope to the party. She seemed to breathe life into it. It was thought that she might be the magnet to bring those blue-collar (white) Reagan Democrats back into the fold, which could bring Pennsylvania, Michigan, Ohio and other battleground states to the Republicans. But this economic crisis, and it is a serious crisis, will be the end of that. Governor Rendell, on ABC’s “This Week” used the following metaphor. And I paraphrase, “If you’re caught in a flood and a man on the bank has a rope, you don’t care if he’s white or black, Jew, Gentile or Muslim. All you care about is he has a rope and may be able to save you.” Obama’s poll numbers have been steadily increasing since the crisis and unless there’s a foreign policy crisis to offset it, they will continue.

An Obama victory in the current economic climate, however, is problematic. Unless Obama repudiates his campaign promises he will increase the capital gains tax and repeal the Bush tax cuts. He also has numerous programs planned that will increase spending. None of this will help the situation, with the possible exception of the spending programs. The tax increases will without doubt make it much worse. And the additional debt is its own problem. But the American people in their ignorance will think a move to the left will solve our economics problem. It won’t. But then neither will electing the Republicans.

A radical new approach is needed. The patient needs surgery. It should be apparent to everyone that the country is in serious trouble. The country needs to embrace unfetered capitalism, less government and a return to a sound monetary system. Our two predominant political parties are incapable of delivering the remedy. Freedom works.

1 comment:

Ed said...

I agree with 90% of what you say there... but i have one issue that you wont agree with me on, nor I you, probably.

the tax cuts for the top 2%.
They have to go.

They have ways of using loopholes that you or I couldn't use even if we knew about them. I'm not paying an accountant 1k for a $500 tax break, but the rich will easily pay an accountant 1k for 50k tax break..

the middle class needs relief. they are getting killed.

republicans have screwed the middle class and 80% of small business.

they need to be taught a lesson.

and its going to be painful.