This page was last updated on September 2, 2012.
Please, not again; Charlotte Hovanec; Beaver County Times; September 2, 2012.
Previous letters from Ms. Hovanec were entitled “Bound to the truth,” “Fox misrepresents what its format is,” and “End political blathering.”
Below is a detailed critique of the subject letter.
“Since the beginning of this recession, I often think back to the days following 9/11. One of Washington’s greatest fears was the collapse of our economy.
“The rallying call to arms issued by President George W. Bush and New York City Mayor Rudy Guliani to America was ‘go shopping.’ Millions rose to the defense of our nation and spent money. Many spent money they did not have, plunging them debt into debt, but ultimately saving Wall Street.”
[RWC] That President George W. Bush told us to “go shopping” is a lefty myth. In his speech to the nation on September 20, 2001, Mr. Bush said, “I ask your continued participation and confidence in the American economy. Terrorists attacked a symbol of American prosperity; they did not touch its source. America is successful because of the hard work and creativity and enterprise of our people. These were the true strengths of our economy before September 11, and they are our strengths today.” You can learn more about the myth from “Did President Bush Really Tell Americans to ‘Go Shopping’ After 9/11?”
“In appreciation, the banks drove interest rates on credit cards through the roof, crippling and punishing the middle class. To stabilize Wall Street, Bush and Congress removed regulations on these banks that were put in place after the Great Depression to curb reckless bank behavior. This deregulation allowed Wall Street to go insane with insatiable greed.”
[RWC] Though I disagree the deregulation to which Ms. Hovanec refers was the cause of the current economic mess we’re, that deregulation happened during the Clinton administration. Public Law 106-102 repealed the “Glass-Steagall Act” in 1999. 75% of House Democrats, 98% of House Republicans, 84% of Senate Democrats, and 94% of Senate Republicans voted for the repeal and then-President Clinton signed the bill. Ms. Hovanec also seems to have forgotten the passage of the Sarbanes-Oxley Act of 2002, supported and signed into law by President Bush. The major cause of the recession was the subprime lending program championed by leftists like Ms. Hovanec.
“When they coupled this with the totally irresponsible spending of Bush and Congress, we witnessed the near collapse of our economy. Once again, we were warned of the imminent collapse of Wall Street. This time, Congress bailed out Wall Street will billions in taxpayers’ dollars. In gratitude, millions of 401k retirement accounts were gone overnight followed by millions of jobs lost and then the housing meltdown.”
[RWC] You have to chuckle when a leftist complains about “totally irresponsible spending.” Normally, “totally irresponsible spending” means not enough spending to a lefty. At the time the subprime lending mess happened, the deficit had been shrinking and was “only” about $160 billion. When Democrats were the minority, they still could have filibustered “totally irresponsible spending” but did not. When they were the majority in both houses of Congress during the final two years of the Bush administration, Democrats did nothing to stem “totally irresponsible spending.” According to the Obama administration’s own data, spending during the final year of the Bush administration was about $3 trillion. The estimate for 2012 is $3.8 trillion, 27% higher. Why isn’t Ms. Hovanec complaining about “totally irresponsible spending” by Mr. Obama and Congress?
Ms. Hovanec has the cause and effect backwards. The “housing meltdown” (aka the subprime lending policy) started the mess and the rest was the result.
“Not to worry, waiting in the wings is Mitt Romney. Although he has no plan for the middle class except the same programs destroying the economies in Europe, he will ride in on a white horse and lift any remaining regulations on Wall Street on his first day in office.”
[RWC] Ms. Hovanec may not know “the same programs destroying the economies in Europe” involve those governments spending money they didn’t/don’t have, just like us. This is what destroys the “middle class.” The rioting we see is the result of the fact these governments are broke and can no longer fund their handout policies/programs.
“Wall Street took our savings, jobs and home. What do we lose next time?”
[RWC] Blah, blah, blah.
© 2004-2012 Robert W. Cox, all rights reserved.