With Republicans Like These, Who Needs Democrats?

Last year, Senator Isakson of Georgia sponsored a bill that gave us the $8,000 first time home buyer credit.  Isakson is a Republican.  It was a year when even the best conservatives turned into redistributive socialists.  They joined the leftist majority and borrowed from China in order to redistribute money to Wall Street and its benefactors.  They robbed from the rich and gave to the rich.  Now he wants to extend the bill, nearly double the credit, and open it up to investors as well.  Does he not realize that we are about to do the same thing to Democrats that we did to Republicans in 2006; kick the bums out for spending too much?

In 2008, home values were dropping like crazy.  That’s great news for people without a whole lot of money who need to buy a house.  That’s terrible news for people who build houses.  But the fact is, we had way too many houses on the market.  There was no demand for houses.  The bubble had burst and there was no way around it.  The housing market had become an inefficient use of resources.

In the real world, that is when the over abundance of housing contractors find a new job, as do excess realtors, until the number of houses on the market no longer exceeds the number of families looking to buy a house.  Yeah, it sucks.  Yes, it is also temporary and eventually results in a more efficient growing economy with expanded wealth and opportunity.  But in 2008, Bush, Paulson and the Democrat Congress invented a new term: too big to fail.

Instead, Congress decided to re-inflate the bubble.  Instead of allowing the market to drop the price of houses by $8,000 on its own, which would automatically create demand among the new homebuyer market, Congress decided to borrow money and give Americans $8,000 to buy a new home.  This kept prices inflated, created artificial demand, and kept the bubble inflated.  Until, that is, December 2009 when the program ends.  At that point, Congress must either allow the bubble to burst again, or they must borrow and tax even more so that they can continue to kick the economic can down the road.

We saw the exact same thing with Cash for Clunkers.  Ford even hired a bunch of new people and increased production.  What’s going to happen when the artificial Cash for Clunkers demand ends?  We will soon find out.

What is depressing our economy right now is the anticipation of the next dip.  This dip will be a result of the end of Cash for Clunkers and the first time home buyer credit, TARP repayment, government sales of bailout stock (Citigroup, GM), Cap and Trade that Obama has now admitted will cost every American family $1,700, and the socialization of the healthcare industry.

Is there hope?  Sure.  We can drill for our own oil, creating a whole new economic segment of growth and employing millions while increasing economic demand in other areas.  We can start to pay down debt instead of increasing it so that 10 years from now half our federal budget isn’t going to pay for interest to China.  We can enact free market healthcare reforms that create competition, create tort reform, and cover people in an efficient, constitutional way.  We can cancel plans to tax every American through Cap and Trade and $350 billion in new taxes for Obamacare.  But you won’t get any of this with the current crowd.  Our best shot for economic recovery is the 2010 election.

And then along comes Isakson and the McCain Republicans.  Perhaps, when they stand next to us and before us at the TEA party rallies they are too busy scoring easy political points to actually listen to what we are saying.

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