Dark times ahead?

With the economic outlook for the nation looking somewhat bleaker than it did a couple years ago, I want to review each potential candidate's proposed economic proposals. I am basing my reactions off of a piece I heard on NPR last week, so each will be only my impressions - I can't find a (free) transcript anywhere.


Both campaign stressed one thing above all else - Americans are hurting and need help. Now aside from the tenuous nature of the presumed answer to the question (do Americans want help from the government? Is it the government's responsibility to help people out when they screw up their finances?), the whole notion that government can provide an effective solution to most, or any, problems is debatable. Social Security, Medicare, Welfare, etc., are all example of government programs designed to help people that ultimately have proven a sinkhoke for taxpayer dollars. Regardless, both candidates seem convinced of the governmental mandate to do something, anything, to help people out.


McCain wants to make the Bush tax cuts permanent, but doesn't seem concerned that the deficit will grow under his plan. Obama wants to nationalize health care, subsidizing both the medical program and his tax cuts to poor and middle-class with greatly increased taxes on the wealthy. Obama's plan would do less harm to our deficit, but the point that struck me while listening to the program is that neither candidate is too concerned with the deficit, and both are enchanted under the illusion that it's possible to spend one's way out of an economic quasi-depression.


This frightens me for more reasons than I can count. At some unspecified point in the future, foreign nations will begin to trade their US bonds for money. Although it is true that the US is currently seen as a haven for currency, a "safe investment," that condition is anything but permanent. There could be a run on the Federal Reserve just as there was on the gold standard. The Euro is already looking like a safe(r) place to park cash than the US, as it's inflating less rapidly than the dollar. The candidates ought to be concerned with keeping our currency competetive in the world market, not to mention the crowding out that always occurs with government deficits.


Obama is more concerned with the deficit, insofar as his economic program does less damage in that area, but his philosophy seems to be that it is government's responsibility to help people - whether it be with medical care, or mortgage trouble. Compared with McCain, he's much less worried about keeping marginal tax rates low, and much more worried about taxing the wealthy to pay for a host of government programs, including nationalizing healthcare, and potentially the mortgage industry.


Both McCain and Obama are focusing on the help they can give Americans. Although this might be just the natural, election-year course of action, it could just as easily be an ideological shift backed by men who will act if given the chance. So vote for McCain! Vote for Obama! They'll each solve all your problems, put an HD-TV in your house and pick up after the kids, all with the help of the government.


What gives them the impetus to act in such a manner, aisde from trying to steal votes from the other side? I do not know. What is scariest to me is that times right now aren't even that bad. What will they do when things really blow up?