Is it the government's job to fix the economy?

iVillage Member
Registered: 07-11-2006
Is it the government's job to fix the economy?
628
Mon, 09-12-2011 - 9:21am

Do you think this controversy will play a role in the upcoming election?

WASHINGTON (AP) — The economy needs to be fixed. On this, Democrats and Republicans agree. They part ways over how to do it and, specifically, what role the federal government should play.

"Ultimately," President Barack Obama tells Congress, "our recovery will be driven not by Washington, but by our businesses and our workers. But we can help." His argument that government has a responsibility to do so probably doesn't sit well with an America that's down on Washington.

Texas Gov. Rick Perry, former Massachusetts Gov. Mitt Romney and other Republicans competing for his job take a different tack as they court a tea party-infused GOP electorate: The economy will thrive, they say, if Washington simply gets out of the way. As Perry puts it: "Smaller government, less spending, fewer regulations.At the heart of the 2012 presidential race is an issue as old as the country itself."

Is it the federal government's responsibility to address what ails the nation, in this case the economy? And if so, to what degree? What is the right balance?

More:

http://news.yahoo.com/analysis-governments-role-fix-economy-072531745.html

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iVillage Member
Registered: 09-30-2011

About that last clause. They're the ones who wrecked the economy in the first place. TARP started under Bush.

Bush said he was advised the economy could collapse if he didn't sign TARP so he put his free market principles aside, erred on the side of caution and signed the bill.

He ran up major war and Medicare debt while cutting taxes.

With the support of most Democrats.

The housing market started its tumble long before Obama took office in January 2009. Maybe you forgot, but I have not.

No, not long before...but then no conservatives have blamed Obama for the housing collapse.

iVillage Member
Registered: 09-30-2011

In a sense, you are right. The Democrats failed to prevent The Republicans from messing up the economy.

iVillage Member
Registered: 07-11-2006

I skimmed over your posts, so I didn't pick up on any specific democratic policies that led to the economic collapse. I do think it is entirely relevant to share the quote from Alan Greenspan:

almost three years after stepping down as chairman of the

iVillage Member
Registered: 09-30-2011

I skimmed over your posts, so I didn't pick up on any specific democratic policies that led to the economic collapse.

Then your "skimming" missed the CRA and subsequent policies that propped up Fannie and Freddie.

I do think it is entirely relevant to share the quote from Alan Greenspan:almost three years after stepping down as chairman of the

iVillage Member
Registered: 07-11-2006

Are you

iVillage Member
Registered: 03-02-2009

Good grief. Yeah, Barney Frank, what a hero. The guy should be in jail for what he's done. I remember the C-SPAN videos of his opposition the reeling in Fanny & Freddie because there was no problem. What a jerk.

"Resist, we much. We must, and we much. About that, be committed."

iVillage Member
Registered: 09-30-2011

Are you

iVillage Member
Registered: 07-11-2006

iVillage Member
Registered: 07-11-2006

An

iVillage Member
Registered: 07-11-2006

http://www.brennancenter.org/blog/archives/bailout_backlash_congress_must_examine_its_own_house/

When Congress last debated regulation (or rather, de-regulation) of the financial industry in 1999, a study by the Center for Responsive Politics showed that members of Congress who supported the Gramm-Leach-Bliley Act received twice as much money from commercial banks, investment banks, and insurance companies as those who opposed the measure. The Gramm-Leach-Bliley Act was the product of many years of lobbying by the financial industry and allowed for the loosening of bank regulations that had been in place since the Great Depression.

Even more worrisome, in hindsight, is how campaign cash from generous industry donors might have influenced the lack of legislation, regulation and oversight. Since 2000, when passage of the Commodity Futures Modernization Act (CFMA) ensured that the credit default swap market would remain unregulated, the market for credit default swaps grew from $900 billion to $45.5 trillion, or twice the size of the entire U.S. stock market. Unregulated and private, difficulties valuing the instruments contributed to the current collapse and were the direct cause of the now-failed American Insurance Group's problems. Bank examiners, a few economists and others had expressed concerns, but Congress never seriously considered a proposal to allow proper oversight of the market. Passage of the CFMA was furtively pushed through by then-Senator Phil Gramm, himself a beneficiary of industry largesse while in office who, since leaving the Senate, has become vice-chairman of the investment bank UBS.

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