Republicans Spurn McCain, Bush in Opposing Financial Bailouts
By Matthew Benjamin
Sept. 2 (Bloomberg) -- The Republican Party platform took aim yesterday at President George W. Bush and presidential nominee John McCain for supporting big-government bailouts.
In language unusual for a party's statement of principles, economic conservatives used the document to reject the rescue of companies such as Bear Stearns Cos., Fannie Mae and Freddie Mac, intended to ease the year-old credit crisis.
``We do not support government bailouts of private institutions,'' according to the text, adopted at the national convention in St. Paul, Minnesota. ``Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself.''
Tony Sutton, a delegate from Minnesota and co-chairman of the economic subcommittee of the Republican platform, said bailouts are ``antithetical to our ideology. The platform committee and the Republican Party believe that the government should interfere in markets little or not at all.''
The document makes no reference to the credit crunch, which many economists say is the biggest threat to the economy in decades. The omission was by design, said Giovanni Cicione, a Rhode Island delegate who served on the subcommittee.
Long-Term Trouble
The crisis, said Cicione, ``is an issue that is very easy to address with a half-solution for the sake of a political point, and that just makes the problem worse in the long term.''
The Bush administration, led by Treasury Secretary Henry Paulson, has taken an increasingly active role in the economy.
In January, Paulson worked with House Speaker Nancy Pelosi, a Democrat, to craft a $168 billion economic-stimulus package to stave off a recession. In March, the Treasury helped the Federal Reserve orchestrate the sale of Bear Stearns. In July, Paulson put together a plan to prevent the collapse of Fannie Mae and Freddie Mac.
``It's becoming a pattern,'' Sutton said.
Some conservatives suggested the White House should allow institutions to fail even if it causes market instability.
``Sometimes it's best to leave the markets to fluctuate,'' said Beth Harwell, a member of the Tennessee House of Representatives and an alternate delegate to the convention.
Can't Let Them Fail
McCain, 72, supported Treasury's actions on Bear Stearns. And while he decried using taxpayer funds to shore up Fannie Mae and Freddie Mac, he backed a July bill to aid the companies, saying, ``We cannot allow them to fail.''
McCain has said he wouldn't allow ``dogma to override common sense,'' referring to bank rescues.
``It's this big-government conservatism of bailing out everybody that gets us in trouble,'' said Don Devine, vice chairman of the American Conservative Union in Alexandria, Virginia. ``I can't think of anything that's more opposed to free-market capitalism.''
Devine said government has no place trying to fix the credit crunch. ``I'm not sure conservatives think of it as a big problem, and they certainly have no faith that Congress is going to make it better.''
Conservatives also expressed unhappiness with the growth of government spending. The platform made no mention of the stimulus package Bush credited with boosting the economy.
``Spend only what is necessary,'' says the platform document.
Losing Its Way
McCain has talked about controlling spending, accusing his party of losing its way on fiscal prudence.
A bright spot for conservatives is McCain's trade agenda.
The platform strongly endorses free trade, echoing McCain's stance in calling trade essential to jobs and higher wages as well as national security.
Even with growing protectionist sentiments among voters in states such as Ohio that have been hard hit by manufacturing job losses, McCain has remained pro-trade.
John Falconetti, a Republican delegate from Florida, said McCain has been right to stick to his convictions. ``The goal is to reduce barriers to trade,'' said Falconetti, chairman of Florida's Duval County Republican Party.
And the party's base, once at odds with McCain on taxes, is growing happy with his position.
The Arizona senator initially opposed Bush's 2001 and 2003 tax cuts as unfair or unaffordable, outraging conservatives. On the campaign trail, however, McCain has supported extending those tax cuts and reducing corporate rates.
Supply Side Fan
McCain, who calls lower taxes the key to economic growth, is embracing supply-side economics, a core belief among Republicans since Ronald Reagan's presidency.
With a plurality of voters saying the economy should be the candidates' top priority, the McCain campaign has been trying to distance itself from Bush on spending and other economic issues.
In June, Douglas Holtz-Eakin, McCain's top economic adviser, said Bush's policies, other than on taxes, have been a failure.
The best way to increase the distance between himself and Bush on the economy is to adhere to the conservative principles outlined in the platform, says Representative Phil English of Pennsylvania, who was head of the platform economic subcommittee in 2004.
That document mentioned Bush more than 250 times, on almost every page. The 2008 version mentions him once.
By Matthew Benjamin
Sept. 2 (Bloomberg) -- The Republican Party platform took aim yesterday at President George W. Bush and presidential nominee John McCain for supporting big-government bailouts.
In language unusual for a party's statement of principles, economic conservatives used the document to reject the rescue of companies such as Bear Stearns Cos., Fannie Mae and Freddie Mac, intended to ease the year-old credit crisis.
``We do not support government bailouts of private institutions,'' according to the text, adopted at the national convention in St. Paul, Minnesota. ``Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself.''
Tony Sutton, a delegate from Minnesota and co-chairman of the economic subcommittee of the Republican platform, said bailouts are ``antithetical to our ideology. The platform committee and the Republican Party believe that the government should interfere in markets little or not at all.''
The document makes no reference to the credit crunch, which many economists say is the biggest threat to the economy in decades. The omission was by design, said Giovanni Cicione, a Rhode Island delegate who served on the subcommittee.
Long-Term Trouble
The crisis, said Cicione, ``is an issue that is very easy to address with a half-solution for the sake of a political point, and that just makes the problem worse in the long term.''
The Bush administration, led by Treasury Secretary Henry Paulson, has taken an increasingly active role in the economy.
In January, Paulson worked with House Speaker Nancy Pelosi, a Democrat, to craft a $168 billion economic-stimulus package to stave off a recession. In March, the Treasury helped the Federal Reserve orchestrate the sale of Bear Stearns. In July, Paulson put together a plan to prevent the collapse of Fannie Mae and Freddie Mac.
``It's becoming a pattern,'' Sutton said.
Some conservatives suggested the White House should allow institutions to fail even if it causes market instability.
``Sometimes it's best to leave the markets to fluctuate,'' said Beth Harwell, a member of the Tennessee House of Representatives and an alternate delegate to the convention.
Can't Let Them Fail
McCain, 72, supported Treasury's actions on Bear Stearns. And while he decried using taxpayer funds to shore up Fannie Mae and Freddie Mac, he backed a July bill to aid the companies, saying, ``We cannot allow them to fail.''
McCain has said he wouldn't allow ``dogma to override common sense,'' referring to bank rescues.
``It's this big-government conservatism of bailing out everybody that gets us in trouble,'' said Don Devine, vice chairman of the American Conservative Union in Alexandria, Virginia. ``I can't think of anything that's more opposed to free-market capitalism.''
Devine said government has no place trying to fix the credit crunch. ``I'm not sure conservatives think of it as a big problem, and they certainly have no faith that Congress is going to make it better.''
Conservatives also expressed unhappiness with the growth of government spending. The platform made no mention of the stimulus package Bush credited with boosting the economy.
``Spend only what is necessary,'' says the platform document.
Losing Its Way
McCain has talked about controlling spending, accusing his party of losing its way on fiscal prudence.
A bright spot for conservatives is McCain's trade agenda.
The platform strongly endorses free trade, echoing McCain's stance in calling trade essential to jobs and higher wages as well as national security.
Even with growing protectionist sentiments among voters in states such as Ohio that have been hard hit by manufacturing job losses, McCain has remained pro-trade.
John Falconetti, a Republican delegate from Florida, said McCain has been right to stick to his convictions. ``The goal is to reduce barriers to trade,'' said Falconetti, chairman of Florida's Duval County Republican Party.
And the party's base, once at odds with McCain on taxes, is growing happy with his position.
The Arizona senator initially opposed Bush's 2001 and 2003 tax cuts as unfair or unaffordable, outraging conservatives. On the campaign trail, however, McCain has supported extending those tax cuts and reducing corporate rates.
Supply Side Fan
McCain, who calls lower taxes the key to economic growth, is embracing supply-side economics, a core belief among Republicans since Ronald Reagan's presidency.
With a plurality of voters saying the economy should be the candidates' top priority, the McCain campaign has been trying to distance itself from Bush on spending and other economic issues.
In June, Douglas Holtz-Eakin, McCain's top economic adviser, said Bush's policies, other than on taxes, have been a failure.
The best way to increase the distance between himself and Bush on the economy is to adhere to the conservative principles outlined in the platform, says Representative Phil English of Pennsylvania, who was head of the platform economic subcommittee in 2004.
That document mentioned Bush more than 250 times, on almost every page. The 2008 version mentions him once.
No comments:
Post a Comment