Take Back the Flag

The 2008 Republican Platform addressed the mortgage crisis in America by supporting limited federal involvement, mostly focused on investigations of illegal practices.  Also, the Republicans boldly asserted their stance on the guaranteed prosperity from the open market:

“We do not support government bailouts of private institutions. Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself.”

Well, President George W. Bush has $700 billion dollars that says otherwise.  Take Back the Flag will not pretend to have the necessary technical knowledge of the U.S. financial sector to judge whether or not a bailout/rescue plan is the right move.  From what we are hearing in the news from both parties, it seems like we might have no other option.  We do however strongly support the provisions that Senator Obama (and even in a few cases, Senator McCain) supports as edits to this bill.  (Its absurd to believe that this money could go into the hands of one man with no oversight and executives could make millions while their companies crumble).  This proposed bailout does not show the economic incompetence of McCain or the Republicans in times of crisis.  Instead, it highlights the Republican parties unreasonable relentless pursuit of “open market” solutions and the failures the party’s uncompromising ways have brought.

Economic theory holds the general case of an open market as the most efficient mechanism for society.  Strong goods are bought and sold while weaker, less desirable products and services are forced out of business.  Transactional costs are minimized, and the open market requires no subsidies or other enginering spending.  All this is based on some serious theoretical assumptions.

Anyone versed in even the most basic principles of economics will support the general idea of the open market.  But those with more insight into the American way of life will also realize the necessity to balance market forces with regulation and yes, government intervention.  The Repubilcans need to get off their high open market horse and work with some compromises to better our country.  It is simply unbelievable that this conservative party trots around declaring government the root of evil, and promising less government involvement.  Even with the obvious and aggregious break from their own platform to clean up this mess they made, will the lies and campaign hype about “keeping the government out of our lives stop”?  Probably not.