Showing posts with label Bush. Show all posts
Showing posts with label Bush. Show all posts

Thursday, August 23, 2012

Todd Akin, Republicans and Winning Elections

The Two Personalities of the Republican Party

The Todd Akin brouhaha brings into focus something I've thought about the Republican party for a long time. The Republican party is a mash-up of economic thought and socio-religious thought.

As you read this, recall those circular drawings you saw way back in about forth grade. You were studying the intersection of sets. There is the set of economic conservatives who vote Republican. And there is the set of social conservatives who vote Republican. The Republicans seem to assume at times that their voters are at the intersection of those sets. I don't assume that, and as I listen to peoples' commentary I suspect that most are outside the intersection of these sets.

That is, they vote Republican for economic reasons *or* because they are socially conservative. Often I think the social conservatives don't care about economic issues and the economically-minded or free-market voters stay Republican in spite of the socially conservative platform planks.

I worry about the limiting effect of the intersection of those sets. As I survey the American scene it appears to me that the set of social conservatives is shrinking. They may be hard-core and vocal, but small in numbers. And the rise of Hispanic voters may render them less important than otherwise.

What about those who are economically conservative and socially liberal, such as myself? We are sometimes called Libertarians. The only catch with voting Libertarian is that they don't have the juice to win - and a vote Libertarian is basically a split from a Republican candidate or issue that might win. 

Into all of this comes Todd Akin

The Republican assumption seems to be that it must have hard-core religious social conservatives in the tent (with Todd Akin suddenly excepted). I don't agree - instead, the whole fiasco is just another exhibit illustrating the wisdom of separating religion and state. I could mention Islam at this point, but I won't.

George W. Bush's strategy was brilliant at the time, I thought. He said a lot of nice things to keep social conservatives in the tent, but did very little in terms of trying to change policy. I liked it that way.

I believe that in America today, and given the ways it is trending, the closer Republicans move to a Libertarian-style platform the better they will do. That's because hard-core church attendance and socially conservative believers are declining in numbers. And young people who are not constrained by any such belief systems are increasing in numbers. And those same young people can no longer assume affluence will be theirs in middle age. They  hear the constant drumbeat in the media about the economy. Some of them will give economics systematic study, and come around to free-market thinking.

I'd celebrate if the entire abortion plank were dropped from the platform. To wit, if Todd Akin does not want an abortion, he does not have to get one. :-)

In my personal experience I've seen that a woman does not get an abortion lightly. That's even if that woman fights vehemently for the right for women to have them. It seems the right to have them is important, but theoretical, before a woman is pregnant. But when the fetus is hers, a lot of feelings, hormones, religious beliefs, fears, medical risks and facts, social concerns, and advice from loved ones suddenly come into her equation. And that's probably how it should be.

Thursday, February 5, 2009

President Clinton and Banks' Market Cap

I'm still amazed that President Clinton has taken not a single shot (that I'm aware of) for his part in the sub-prime mortgage debacle and subsequent credit meltdown. Wasn't Reagan the Teflon president, or was it Clinton? I think they both have that property. I tag Clinton with a lot of the blame for the sub-prime situation. He pushed aggressively for the Carter-era CRA to be strengthened and extended. This is noted elsewhere, including my first entry on this blog.

Also, the cosy, corrupt (IMO), and ultimately very damaging relationship between congressional democrats and Fannie Mae and Freddie Mac was extended and deepened through the Clinton years. And this component of the debacle ultimately makes sense. If a lot lousy mortgages are being created, then some party needs to buy 'em so still more can be created. Only after all this was in motion, did Wall Street firms create the derivatives, swaps, and other instruments that spread the bad-mortgage disease around the world. If President Clinton didn't want the relationship and doings at the GSEs to continue, they wouldn't have.

President Bush knew about it and tried to stop it on a few occasions in his first term. But instead he's tagged with blame in the mortgage problem, to my complete bewilderment. Republicans can be blamed for feeble and ineffective communication - of that I'm sure.

A net result of all this was discussed today on CNBC. What's really the market cap of the big banks affected by this? Some say it's essentially zero. It's certainly only a fraction of what it was. Where did it go and who owns the spoils? To the degree that the bad loans created a non-wealth bubble, this "bad air" was sucked into the banks and canceled out value. Thanks for the market distortion, President Clinton. Now we public (taxpayers) own a sizable chunk of the banks' remaining market cap.

The entire issue is a cause of serious concern for anyone who cares about undistorted, free markets. I'm angry. Remember Earl Pitts? "Why I'm so angry, I could......"