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Morning Update: Economic Reform Plan

by campaign2008
September 19, 2008

Sen. Barack Obama (D-IL) said in a statement he supports Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson’s proposal for the economy. He said the plan should be coordinated with the G-20. “We are facing a global financial crisis and the United States can take a leadership role in coordinating a global response to the present crisis, as well as greater regulatory cooperation and alignment to prevent future crises,” he said.

PALIN: Gov. Sarah Palin (R-AK) said she believes Iraq is the central front in the war on terror, and said war with Russia should be “off the table” in the second installment of an interview with FOX’s Sean Hannity on Thursday.

INDIA: Deutsche Welle’s Across the Pond blog looks at the U.S.-India nuclear deal and its potential effect on the presidential race.

1 Comment

  • Posted by Bryant Arms

    Big business should not be allowed to become too large to fail. A business with that much influence is too big for a free market. It has access to wholesale market manipulation. And it has the privilege of depending on a government safety net if it fails.

    The recent economic crisis demonstrates that such businesses will now be rescued at taxpayer’s expense when they suddenly collapse. The CEO of AIG has even demonstrated on national TV that big business leaders expect tax funded rescues. And that diminishes a primary incentive for them to be efficient and prudent. It may even encourage their board members to strategically create a crisis requiring a government bailout rather than suffer losses over time on their own. These business leaders have developed an attitude of entitlement that should inspire corporate welfare reform.

    If businesses that are too big to fail are allowed to exist, then they should pay for their own government entitlement programs. This has been the arrangement for the lower classes. That is why social security tax rates in the United States become less for those who become wealthier. Wage earners should not be expected to pay for business welfare too. The influence these businesses have over markets should help them pay for their government programs. And to discourage corporate welfare fraud, those in charge of businesses that either purposely or by neglect cause the government to pay for their rescue should be punished for a kind of embezzlement.

    Bryant Arms