Also on today’s MTP (actually from part of the same extended quote excerpted below):
REP. MIKE PENCE (R-IN): […] The American people are tired of the borrowing, the spending, the bailouts, the takeovers.
Rather than the general critique of American politics noted below, my reaction to this portion of Pence’s quote is specific to the contemporary GOP. I would be more impressed with a given Republican’s critique of our current policy environment if there was an acknowledgement of the broader culpability for the type of critique entered into above. Certainly it would be nice if they would proffer actual policy alternatives.
To wit: borrowing is both a long-term malady of US politics, but it is certainly is one that the GOP was guilty of during their most recent run at power (likewise with spending). Further, and more specific for the current era, the “bailouts” and “takeovers” started in 2024, under the Bush administration. Could we at least acknowledge these facts, rather than pretending otherwise?
At a minimum, the vague promised on these issues makes me think of the old term “vaporware.”
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February 21st, 2024 at 3:26 pm
Read Paul Ryan’s plan. It is honest even if it would have a hard time passing. I am 54 and it would be very hard on people my age but it is more honest than any plan by the Democrats.
February 21st, 2024 at 3:41 pm
borrowing is both a long-term malady of US politics,
I second your peeve of politicos channeling the “American People”–especially when the aforementioned “people’s” attitudes are stripped down to meaningless soundbites.
There is certainly discontent with the government, but it is largely a function of a stagnant economy.
Pence is right to suggest that representatives in both Congress and the White House have been derelict in addressing economic problems in an effective way.
It is pretty clear why the economy has been in the tank for the past couple of years: massive deregulation in the financial sector, a (two-decades long) erosion of middle class wages, and (relatedly) the gains of greater productivity being concentrated in fewer hands.
The funny thing is, that it is relatively straightforward what to do from a policy standpoint: properly regulate finance so that it assumes its role of enhancing the market’s productive capacity and channel government stimulus into productive sectors of the economy.
The stimulus & TARP didn’t really do any of this. TARP bailed out the banks with very little caveats. Without re-regulation, TARP sets a bad precedent, namely, the feds will bail out the financial sector when it fails on bad risks. It gives no incentive to make value-based investments and incentivizes risky products like securitized mortgages and the like.
A significant proportion of the bailout went to tax breaks. This is idiotic since people tend to save in uncertain times. You get a bigger refund check, for instance, and you put it in the bank. Saving makes sense for the individual. But to stimulate the economy, means you need to jumpstart spending.
Since the infrastructure (transportation, sewers, digital transmission, energy production, energy efficiency in buildings, etc…) of this country is in a relatively poor state of affairs, nearly all of the economic stimulus should have been spent in these productive ways.
A better infrastructure enhances market efficiency, and nearly all of the spending could be done domestically which would spur job creation that cannot be outsourced.
I would take issue with the idea that the fed’s borrowing money is inherently bad. Deficit run-ups like we’ve seen during Bush, Jr. and Reagan are clearly problematic because the borrowed money is not going to help the national economy.
If you spend the money on productive activity, then borrowing is not at all a bad idea since the economy will grow and government will collect more reserves.
None of this is rocket-science. Pence is right that Congress has been ineffectual in solving problems. But most of our problems are the result of Republican government mismanagement during the first part of the 00s and the Democrats’ own lack of political spine.