It's the Stupid Economy Again

Still don't think CNN's at least a teeny tiny bit in the tank for Obama? Check out this piece. The distortions really deserve individual recognition:

Until recently, McCain consistently described himself as an opponent of most government regulation. In 1995, he proposed an across-the-board moratorium on all federal regulations but that measure failed in Congress.

In a March interview with The Wall Street Journal, he said, "I'm always for less regulation. But I am aware of the view that there is a need for government oversight."

The CNN writer then gleefully points out his recent verbal flip-flop towards regulation without questioning whether his past rhetoric was actually about over-regulation versus saving the economy in a crisis. Other than bailing out AIG or enacting some Bush-like proposals the last remaining alternative is the Ron Paulternative--"let 'em eat cake". Would Paul even have the stones to do that considering the political fallout?

But fine, he gotcha'd McCain--that's their job. Feel free to scan the article looking for examples of Obama's financial past, such as his contributions from Fannie Mae or perhaps even his associations with the failed Chicago Annenberg Challenge or the sorry condition of the Illinois State Pension fund. Or better yet don't bother, just check out the little teaser box on the left side of the page:

Fair and balanced, CNN style! Slant the article towards Obama then point readers to go other places heralding how he's better on the issue and how Democrats will benefit from the deal. Yes, yes, hardly breaking news.

Actually, with this AIG thing how about a quick trip back in time. In 1976 Gerald Ford bought a railroad. It was called "Penn Central"; it was decrepit; and many wondered if the US freight rail industry was better off sold for scrap and new condos. He renamed it "Conrail". The alternative was to let several major rail arteries go into bankruptcy and perhaps liquidation, which would have severely affected interstate commerce since most other railroads connected to Penn Central. This line also served nearly every auto plant in America at the time. Inflation was already spiraling (remember the WIN buttons?).

So he had two basic choices. One - Allow competing railroads to buy off the best chunks while leaving others to rot or be abandoned. Problem is, nobody can force anyone to buy and run a failed RR with labor problems, and the ICC heavily regulated everthing tightly at the time. Or, two - let the line go into liquidation since it was incapable of turning a profit. Keep in mind a lot of the right-of-way property was highly valuable and coveted. Thing is, once the condos or shopping centers are built it's hard to go back and lay track again, so that option was a rather final solution (Amtrak was different because it was strictly about preserving passenger train service, something that will never be purely profitable). He made one of McCain's "hard calls".

Ironically, Jimmy Carter came along in 1980 and saved the day by deregulating the railroad industry with the Staggers Act, which allowed a major paring down of the nation's rail network through abandonments and sales but the resulting streamlined network and lack of price regulations allowed a pathway to profitability for the remaining carriers. The government eventually sold Conrail to Norfolk Southern and CSX in 1997 for a profit. If not for deregulation we taxpayers might still own Conrail.

So yes, a government buy-out saved the industry and preserved the infrastructure but it was de-regulation that saved the industry and the peoples' investment. Carter bailed out Chrysler in 1979 with loans but look at the domestic auto business now. At some point the government is going to have to just say no or cut regulation.

But which government? Obama's tutelage suggests that as long as everyone has living wages (determined by him) and great health care, state-run industry ain't all bad. McCain, though currently waffling a bit to get elected, likely abhors the above notion with every molecule in his body, perhaps even going as far as just saying no one day. We have our choices.

MORE 9/17/08

Gang tackle. And McCain is right where Obama and the press want him--on defense. That's why Biden has bobbed to the surface to attack, fulfilling his role as the man designed to cause McCain to flame out into a colossal meltdown, which is what all leftist parties are secretly hoping for. Hang tough, you old geezer.