Wednesday, January 7, 2009

Esquire runs Sanford's response to its attack!

Yesterday, Esquire ran an opinion piece slamming anti-bailout Republicans in general, and Mark Sanford in particular, for their warnings about bailout spending.

To Esquire's credit, they're now running Sanford's three-pronged response, which we've summarized, including sharp quips from the Gov. where appropriate.

1) We've been throwing $ at the economy with no improvement. Why continue?

Would Americans continue to frequent the same mechanic if each repair bill increased in cost but got no closer to fixing the problem?

2) The housing market was NOT a failure of the market; but of the foolish lending practices of Fannie and Freddie.

Its opposite, "crony-capitalism," is what paid over $100 million to the connected few who ran organizations like Fannie Mae in Washington. Politics drove a big part of what has happened.

3) Get your history right. FDR lengthened the depression by raising taxes and limiting free trade.

Depression-era policies of expanding labor union power and increasing spending did little to improve the economy, as we had nearly twenty-percent unemployment in 1939 -- ten years after the stock market crash.

If government spending were the key to preventing recessions, then we'd never have one, since increasing spending is oftentimes the default response from Washington when times are tough.

Read Sanford's whole thing.