Republicans Running Out of Arguments
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Throughout this campaign season, three arguments Republicans have put forth against Obama have been that he will raise the capital gains tax, take a more protectionist stance on trade, and nationalize health care. Ironically, all of these arguments may no longer be relevant. First, regarding taxes, through October 8th, the S&P 500 is on pace for one of its worst years in its history. When global equity markets lose over $26 trillion in market cap (41% of their market value) over a span of a year, it's safe to say that the last thing on investors' minds is capital gains.
Regarding trade, critics of Obama point to his campaigning in the Democratic primaries where he said he would renegotiate trade treaties in order to protect the interests of American workers. Free traders believe that any restrictions you put on trade will slow trade and therefore stunt economic growth. However, what Republicans feared Obama would do is already being taken care of by the market. As shown below, the Baltic Dry Freight Index, which gauges the rate at which shippers charge to move raw materials by sea, has collapsed by over 76% since May for the largest decline in its history. This indicates that international trade has already ground to a serious halt.
click to enlarge
Third, many people think that it will be impossible to work on nationalizing health care because the government won't have anymore money to work with after the $700 billion financial bailout package. But judging by the performance of our health insurance companies recently, that industry might just need a government bailout of its own.
Finally, Obama has been running on a campaign that he is the "candidate of change." At this point, even Republicans will take all the change they can get...quarters, dimes, nickels, or even pennies.
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This article has 7 comments:
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AlexS
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193 Comments
Oct 09 04:47 PM-
Niranjan
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2 Comments
Oct 09 05:41 PM-
Niranjan
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2 Comments
Oct 09 05:42 PM-
Brian27
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37 Comments
Oct 10 08:35 AMObama called for renegotiating NAFTA. Since when are dry freight shipping rates important to North America trade?
Since when has a government bureaucracy run anything well?
Finally you forgot the best policy that will put an end to the stock crash. Eliminating corporate taxes automatically increases net income of all companies by 35%. Putting money in the hands of those who know how to invest is the quickest and most efficient way of improving markets.
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kurt walter
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409 Comments
Oct 10 10:33 AM-
mediapro
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57 Comments
Oct 10 03:04 PMThe Current Mess in fact did start with the 1999 repeal of a depression-era law (Glass-Steagall) that served to keep a check on commercial lending and re-packaging financial products into incomprehnsible paper that was constantly re-sold. Sound familiar? If you really want to look at who was repackaging the clean mortgage paper into CSE's look no further than the same investment company that was the key reason for the passage of Glass-Steagall -- JP Morgan and the rest of the Investment Banking community. They were doing exactly the same thing they did in 1932 -- re-packaging debt into complex instruments and re-selling.
If we want to pin the blame, McCain chief financial advisor, Phil Gramm, literally inserted in the middle of the night the key provision that allowed the financial industry waters to be muddied with no distinctions between insurance, banking and investing.
Now for some shocking realities:
1. The top 1% control 40% of all financial wealth in the U.S. The top 20% another 52%, leaving the rest of us (80%) America's financial wealth at a whopping 8%.
2. In terms of inherited wealth only 1.6% inherit moe than $100,000. 91.9% receive nothing. Yet the "death tax" is the highest priority on the ultra-conservative agenda.
Now for some sobering reminders:
Under Clinton we enjoyed a $287 Billion SURPLUS that's now an ever-growing DEFICIT that at last peek was nearing $700 Billion and national debt that has grown from $5.7 Trillion to $10.2 Trillion in just seven years.
It wasn't because Clinton was an economic genious. He simply chose folks who shared his philosophy of government and its role. I'll put my money in the hands of the guys that believe that it's the government's job to invest in the 80% of us that need practical ways to grow our own wealth (smart energy policy, infrastructure development, education).
Where was FDR when we needed him 28 years ago, when this Milton Friedmanesque, neo-conservative insanity began?
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rcraig
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32 Comments
Oct 10 04:24 PMThe safe bet is to fire all incumbents no what party affiliation.
Remember who knew what when, and thias is a clue on how you can tell.
1) The government stopped using the M3 method to determine inflation just before the big crash.
2) The housing committee ( lead by Barrny Frank, a Democrate) after having a special hearing last year claimed Freddy Mac and Fannie Mae were in good shape and ther was no forseeable problems to be concerned about.
3) Eli Broad (aka; Uncle Eli, Mr. Orange Cuonty, ect) started bailing out of AIG three months before the crissis. Sounds like possible insider trading may have been in play.
4) Every one of the board member unanomously approved bonuses and increases in their salaries just before the crissis.
5) Printing extra money always causes a weaked confidence in the dollar and creates more inflation.
6) Real estate and housing prices were growing faster than they shold have placing a stain on the econmy and shutting down the market for eligible buyers.
7) Men like Carlton Sheets were like flies on the TV selling their latest and greatest method on how to get rich off of realestate for the last ten years without any legal action. (buying, selling and trading homes without any money down and borrowing money to use as a down payment in many cases)
8) Look at the money. Who gave what to who and when. Alll of the big money came from guess who. The big boys and girls in trouble today and they have the solution on how to get out of the mess.
You can go down a long list of small and large issues both with the government and with the private sector.
Wake up people we let our government go stale. We didn't hold the politicians accountable.