Democrats Aim for New New Deal, McCain Aims for Growth

by Sal on October 14, 2008

in Economy,Election 2008,Politics

Democrats, eyeing an Obama Presidency and a super-majority in the U.S. House, are working to craft legislation that will usher in a New New Deal, or as they call it, a re-engineering of the New Deal for the 21st century, which will usher in socialism for a generation. 

The Democrats see, ironically, the Paulson Plan as the foundation to this new socialist utopia that they see themselves as creating.  This morning, the U.S. Treasury took the step of partially nationalizing nine of the country’s largest banks.  Both Paulson and Bush spoke of the nationalization as a necessary evil to save the economy, and assured that the American people that the move would be temporary:

The government’s role will be limited and temporary.  These measures are not intended to take over the free market but to preserve it.

The Democrats, are ecstatic over the takeover, and do not see this morning’s move as temporary.  From Politico: 

Come next year, the new administration and the new Congress may be able to build an entire new bureaucracy to govern the economy for decades.  Essentially, Democrats want to put some institutional permanence behind the sweeping executive actions taking place as the Bush administration moves to shore up banks and other financial institutions with Treasury’s new powers.

This is why Americans need to fear an Obama Administration and a Democrat Congress.  Among other things, the Democrats are planning to:

Even scarier than all of these proposals is who will be put in charge of them;  Barney Frank, Chris Dodd, Nancy Pelosi, Harry Reid, Barack Obama, SWMNBN, Chuck Schumer, and the other Democrats that had a hand in causing this mess to begin with

John McCain, on the other hand, today introduced a slew of Pro-Growth proposals that are based on capitalism, free market ideas, and getting government out of the way.  While not as sweeping as I’d prefer, the plan does make good economic sense.  It includes:

  • Lowering the Capital Gains tax to 7% for two years
  • Allow for money withdrawn from 401ks or IRAs for the next two years to be taxed at the lowest income tax rate — 10%
  • Suspend the rules that force seniors to withdraw money from retirement accounts after 70.5 years. 
  • Allow capital losses taken in the next two years to be tax-deductible up to 5 times the current limit. 

Looking at the two plans, the path is clear.  One represents capitalism, the other socialism.  The original New Deal was a dismal failure.  It brought us many of the economic problems that we face today, and ushered in an era of big government.  With the Democrats touting this massive expansion of government, and Barack Obama promising wealth redistribution, the importance of this election is becoming increasingly clear.  On November 4, Americans will have the choice between Socialism, Big Government, and loss of the American Dream on one hand, and prosperity and continued economic growth on the other.  The choice is obvious; it is up to McCain and to the rest of us to help to make this comparison to our fellow citizens.

{ 1 comment… read it below or add one }

Ryan October 14, 2008 at 5:05 pm

As Conservatives, we’ve always laughed at the Libs for having a 44-year-old play book from the Great Society. Well, since that didn’t work so well, they seem to be going back to a 75-year-old playbook from the New Deal!

The difference is that today’s crisis was partially caused by the government apparatus and using the government to solve it is likely to prolong the crisis as some of the economists Sal cited indicate.

Creating a new bureaucratic structure which is historically doomed to fail will seriously decrease our faith that the government can do anything right, leading to serious societal jitters which may result in violence like the jitters of the 1930s or those of the late 1850s did.

Remember the Reagan Revolution only happened because government-as-the-solution policies of the New Deal and Great Society had failed miserably by 1980. Unfortunately, many of today’s voters don’t remember Jimmy Carter — hence they have no idea how bad things can actually get. The historian in me gets worried when the party likely to sweep in three weeks starts enthusiastically talking about the failed New Deal as a model for a solution to the current crisis.


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