The Bright Coast

Progressive Thoughts from San Diego Alums on Law, Politics, and Culture

More Gov’t Regulation – isn’t this against conservative principles?

Posted by progressivethink on September 19, 2008

I find it quite hard to believe how McCain can rail against the status quo in Washington, when he is effectively part of the establishment. He rails about the lack of financial regulation… yet he has been one of the biggest proponents of deregulation in Congress. here. First he proposed the deregulation of the S&L’s in the 1980s, leading to a massive government bailout in the early 1990s (one in which McCain was himself implicated in in the Keating Five Investigation). Then he helped push the deregulation of the energy industry, which directly led to the Enron debacle and the California Energy Crisis.  I don’t see how one can simply reverse all their positions on the subject, and call for more regulation. here. Sounds like a flip flop to me.  In fact McCain has blatantly made clear that he is unable to master economic principles, and that the “fundamentals of the economy” are strong.  I think its time for people to realize that the Republicans are not the party of market prosperity and fiscal restraint anymore.  The present administration has certainly made this clear.  The largest expansion in entitlements and government spending in many years, and the creation of one of the largest bureaucracies (the DHS).  Economic Republicans (which make up the majority in SD) seem to want to ignore the economic damage the present administration has inflicted on the country. ( when you have an 80 billion dollar war to fund, you probably don’t want to cut taxes and pay for it on a credit card).. this is simple economics.. even a high school student could understand it.   The same situation occurred in the 1980s under Reagan (culminating in the recession in the early 1990s).  While things might have been roaring in the 1980s, this was all financed through defense deficit spending. ( Maybe if we are going to spend money on government programs, they should actually help its citizenry and the economy – such as through education and health spending).  This massive deficit caused the economy to collapse into recession in the early 1990s, just as it has today.

Clearly more regulation in the markets is necessary.  Time and time again when the government reverts to a laissez faire attitude to business and the markets over speculation and corporate irresponsibility results.  This has happened throughout history, from the panics of the 1800s through the Great Depression and still holds true today.  Perhaps if we had had more government oversight earlier, then the taxpayers would not have to fund the massive bailouts that have been occurring on a daily basis in the past week.  Give the SEC and the Fed the tools necessary to carry out their jobs, and the economy will flourish again.


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