The financial crisis seems to be deepening: unemployment is rising, home prices are falling, the stock market has plummeted, credit is tightening, tax revenue is falling, municipal and state governments are facing sever budget shortfalls, and the sky, if not falling, is surely sagging earthward.
As I write, the House is debating the new Senate version of a bailout bill. Prudence would dictate passing the bill, as failing to do so could result in a deep recession or even a depression.
Why are so many, most notably House Republicans, holding the bailout hostage? Primarily because the public is opposed to it, and every member of the House faces an election a month from now. What a dilemma: do I vote against the bailout and risk depression, or vote for it and risk losing in November? Am I a public servant, or a self-serving demagogue?
Thoughtful conservatives should have no trouble answering such questions. While it’s a bitter pill to swallow, this bailout is sorely needed.
Thoughtless conservatives, on the other hand, are using the bailout to appeal to the basest insticts of the far right, where too many seem willing to sacrifice the nation’s security in the name of vapid populism.
Three of the most thoughtful conservatives have come to very similar conclusions in the wake of Monday’s House defeat of the bailout.
David Brooks in “Revolt of the Nihilists” notes that the 228 House members who voted against the bailout
…showed the world how much they detest their own leaders and the collected expertise of the Treasury and Fed. They did the momentarily popular thing, and if the country slides into a deep recession, they will have the time and leisure to watch public opinion shift against them.
House Republicans led the way and will get most of the blame. It has been interesting to watch them on their single-minded mission to destroy the Republican Party. Not long ago, they led an anti-immigration crusade that drove away Hispanic support. Then, too, they listened to the loudest and angriest voices in their party, oblivious to the complicated anxieties that lurk in most American minds.
Now they have once again confused talk radio with reality. If this economy slides, they will go down in history as the Smoot-Hawleys of the 21st century.
Brooks didn’t name names, but the fact is that Rush Limbaugh and Sean Hannity, along with the talk radio reactionaries who follow them on the AM airwaves, have put their own fame and fortune above the good of the nation.
Charles Krauthammer, in “Catharsis, Then Common Sense,” questions the motives of those 228 naysayers in the House:
Congress has every duty to be careful with taxpayers’ money and to suggest improvements in the administration plan. But part of Congress’s reaction has nothing to do with improving the proposal and everything to do with assuaging the rage of constituents — even if it jeopardizes the package’s chances of success, either by weakening it or by larding it up with useless complicating provisions designed solely to give the appearance of sticking it to the rich.
And if no bailout is forthcoming? According to Krauthammer, the bailout is needed “to prevent the American economy from going over a cliff.”
George Will is more forgiving of the 228, but leaves no doubt that some form of bailout is needed:
It is potentially catastrophic that this crisis comes in the context of a closely contested election and a collapse of presidential authority. Congress should disconnect from a public that cannot be blamed for being more furious about than comprehending of this opaque debacle. The public wanted catharsis and respect for its center-right principles and got both with Monday’s House vote. It still needs protection against obliteration of the financial system.
As for thoughtless conservatives, few are as thoughtless, mean-spirited, dishonest, and self-righteous as Ann Coulter, who, in a column revealingly titled “They Gave Your Mortgage To A Less Qualified Minority,” blames the crisis on Clinton-era liberal Democrats and (note the racist code words) “minorit(ies)” and “welfare recipients”:
This crisis was caused by political correctness being forced on the mortgage lending industry in the Clinton era.
Before the Democrats’ affirmative action lending policies became an embarrassment, the Los Angeles Times reported that, starting in 1992, a majority-Democratic Congress “mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains.”
Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities…
Now, at a cost of hundreds of billions of dollars, middle-class taxpayers are going to be forced to bail out the Democrats’ two most important constituent groups: rich Wall Street bankers and welfare recipients.
Political correctness had already ruined education, sports, science and entertainment. But it took a Democratic president with a Democratic congress for political correctness to wreck the financial industry.
Coulter, who knows better than to believe her own bile, takes her cues from talk radio, where it’s all about ratings and ad revenue. Liberals and Democrats are treated not as fellow countrymen with differing viewpoints, but as traitors and socialists to be reviled. The truth is irrelevant: whatever the far right will buy, Coulter and Limbaugh and Hannity will sell. In the quotation above, for example, Coulter refers to “the Democrats’ two most important constituent groups: rich Wall Street bankers and welfare recipients.” Scapegoating both rich and poor is classic populist demagoguery.
The American people deserve better. Hopefully, these cynical reactionaries haven’t gained enough influence to lead us into a depression (which, of course, they’ll manage to blame on the left.)
In the sixties and seventies, the left was discredited by the undue influence of drug-addled, radical chic musicians and anti-establishment activists, whose populist appeal led to disastrous legislation like the failed $11 trillion welfare state. Now, the right is being discredited by the undue influence of egomaniacal, faux-conservative pundits and radio entertainers, whose populist appeal has helped to enable the debacle that is the Bush administration.
The rest of us are stuck in the middle as the ground gives way beneath our feet.
Newsprism