October 3, 2008

Economic Car Crashes

Posted by Anika Brown at 1:34PM

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In a complete turn around from Monday’s embarrassment, the House has just passed the bailout with a margin of 92 votes.

While everyone on Capitol Hill is patting themselves on the back and both presidential candidates are claiming the role of our knight in shining armor, the big question is: what changed? What revisions were made to change the minds of the 200+ politicians who deemed the plan un-American?

Did they increase the direct benefits to their constituents? Maybe extend a little help to the 9.4 million people who are unemployed? Change the bankruptcy laws to protect all those houses on Main Street from going into foreclosure?

Of course not.

Unlike President Roosevelt, who was under more pressure and facing a nation in even greater despair, Congress didn’t use this opportunity to reform an inherently corrupt system. Instead, they packed the rescue bill with earmarks so off the wall it’s almost funny. Two of my favorites are a $2 million tax break to wooden arrow manufacturers in Oregon and $192 million rebate for rum producers in the Caribbean.

Forget lipstick on a pig. They brought a band-aid to a car crash.

Being the responsible college senior that I am, I spend a lot of time mulling over my future and what I need to do to ensure my long-term success. Normally such thinking involves things like employer 401ks and high-yield savings accounts (I know, I’m a nerd). However, as I watched the news coverage of Fannie, Freddie, and the bailout that wasn’t on Monday, my strategy went by the wayside.

Now, all that comes to mind is how much I’d like to get my hands on one of those shiny red Easy Buttons from Staples.

The sad thing is that I am only mostly kidding. Believing in the powers of some plastic paper weight is only slightly more pathetic and absurd than what’s going on in real life.

The American Dream, an ideal that has been the foundation of every social movement in this country, is disappearing. In its place are undercurrents of anxiety and uncertainty that are only getting stronger as we enter a new presidential era.

After eight years of corrupt corporations, a dwindling job market, increased cost of living, and wanton spending, we are in desperate need of leadership. But will we get it?

The House of Representatives’ rejection of the first bailout plan exposed the failings of both the Republicans and the Democrats.

As the bipartisan opposition to the plan, including liberal favorite Dennis Kucinich and neocon icon Newt Gingrich shows, the bailout isn’t a black-and-white issue. All the criticisms and concerns surrounding the plan are more than justified - handing over $700 billion to an industry prone to mismanagement is not only risky, it is unfair.

As much as we would like to though, we can’t leave all those golden-parachuted CEOs to twist in the wind. Banks are an integral part of society, with direct ties to mortgages, car loans, and the stock market. Self-preservation makes the idea of not stepping impossible.

It’s a dicey situation. No matter what provisions are included in the new bailout plan, Congress will not be able to satisfy all of their constituents. I am sure their inboxes will be flooded with criticism. Some may lose their bids for re-election.

But that’s the position they chose to be in. Leadership isn’t shaking hands, kissing babies, or pandering for votes. It’s the ability to get things done.

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Still don't understand the bailout plan? You're not alone.

Jay Smooth tackles the economic meltdown on Ill Doctrine: