Paulson Plan is Bad for the Economy

by Sal on September 22, 2008

in Economy,Politics

The Bush Administration has proposed the so-called “Paulson Plan” to fix the economic situation that we now find ourselves in.  The plan would find the U.S. Treasury buying out $700 billion in bad mortgages that is currently crippling Wall Street, in the hopes to free up the credit market and allow Wall Street to rebound.  This plan would be a long-term economic and political disaster.

Besides the inherent socialism of this plan, congress is hesitant to pass it as-proposed, and wants to add to the mess with its own-proposals.  The Democrat-controlled congress already wants to add needless “help for people on Main Street” (a.k.a. welfare) and congressional oversight of the process (a.k.a. more corruption). 

The Bush Administration’s response to the crisis has been reactively socialist in approach, which is quite disturbing coming from a Republican President (one wonders what people’s reaction on our side would be if this type of sweeping government intervention had occured under Clinton).  The idea that Government can solve this problem, which it created, is foolish, and although it may fix the crisis in the short-term, it will become a long-term drag on our economy, as money tied up in government never has the same bang-for-your buck effect as money in the private sector, due to the natural inefficiencies of bloated buerocracy.  Sword-At-The-Ready has posted a transcript from Friday Evening’s Mark Levin Show, in which Levin outlines and laments this movement towards Socialism in our great nation and how it all started (in relation to this current crisis) in 1977, and moved forward to today’s situation, with bad decisions and bad policy from both sides of the aisle. 

The truly sad part is that there are few elected officials in Washington who are proposing or espousing sound, Conservative, free-market principles as a solution to this problem.  Until this morning, I had yet to see or hear any alternative ideas that could be used to get us through the current crisis and provide for growth in the long-term.  Former Speaker of the House Newt Gingrich, over at National Review’s The Corner, outlines why the Paulson plan is problematic, and what could be done to solve the current crisis in a free-market way. 

Through all of this, we have to remember that we are the most resourceful, entrepenurial, and economically sound country on the planet.  The fundamentals of our economy are strong (yes, Barack, they are) and we will survive this current crisis.  The question remaining is how will we stem the onslaught of Socialism when both Democrats and Republicans are pushing for government solutions to private-sector problems?

{ 3 trackbacks }

Bailout BS | Axis of Right
October 29, 2008 at 8:04 am
The Socialist Bailout Fiasco | Axis of Right
November 12, 2008 at 7:57 am
On TARP, The “Experts” Were Wrong | Axis of Right
October 27, 2009 at 5:07 pm

{ 2 comments… read them below or add one }

Free Market Capitalist September 22, 2008 at 5:13 pm

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Captain Capitalism September 26, 2008 at 6:14 am



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