Posts tagged with: mccain

What is the root cause of the sub-prime crisis shaking the global economy? We need to know so we don’t allow it to screw up our economy even worse.

Many point to dishonesty and poor judgment on Wall Street. There was plenty of that leading up to the near-trillion dollar bailout, and even now the stock market is busily disciplining stupid, dishonest companies.

Others point to the many people who falsified loan applications to get mortgages beyond their means. That too played a role.

But dishonesty and poor judgment are as old as Adam and Eve. Something more was at work in the present crisis, a crisis of unprecedented scope. Why didn’t profit-minded loan companies run thorough credit checks? Why did they keep pumping out low interest loans to high risk borrowers, ignoring the risks?

It’s as if somebody spiked the financial system’s punch bowl with stupid juice, driving normally prudent financiers to dash, en masse, over the cliff.

It seems that way because it is that way. The brewers of the stupid juice were largely (if not exclusively) politicians in Washington who sought to redistribute wealth from the rich and middle class to poor people with bad credit. These politicians fostered various laws and institutions that directed, cajoled and legally bullied mortgage companies to extend big loans to people with little credit.

A case in point is a group called ACORN—Association of Community Organizations for Reform Now. Stanley Kurtz explains in an Oct. 7 essay at National Review Online:

“You’ve got only a couple thousand bucks in the bank. Your job pays you dog-food wages. Your credit history has been bent, stapled, and mutilated. You declared bankruptcy in 1989. Don’t despair: You can still buy a house.” So began an April 1995 article in the Chicago Sun-Times that went on to direct prospective home-buyers fitting this profile to a group of far-left “community organizers” called ACORN, for assistance. In retrospect, of course, encouraging customers like this to buy homes seems little short of madness.

… At the time, however, that 1995 Chicago newspaper article represented something of a triumph for Barack Obama. That same year, as a director at Chicago’s Woods Fund, Obama was successfully pushing for a major expansion of assistance to ACORN, and sending still more money ACORN’s way from his post as board chair of the Chicago Annenberg Challenge. Through both funding and personal-leadership training, Obama supported ACORN. And ACORN, far more than we’ve recognized up to now, had a major role in precipitating the subprime crisis.

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Robert Stackpole of the Divine Mercy Insititute offers a thoughtful analysis of the positions of the major presidential candidates on health care at Catholic Online. I missed part one (and I don’t see a link), but the series, devoted to examining the electoral responsibilities of Catholics in light of their Church’s social teaching, is evidently generating some interest and debate.

Stackpole’s approach is interesting because he tries to steer a course between the two dominant camps that have developed over the last thirty years of presidential elections: Catholics who vote for Republican candidates in large part or solely because they are at least marginally and in some cases significantly more in line with the Church’s teaching on the sanctity of life with respect specifically to the legality of abortion (I belong here); and Catholics who, reluctantly or otherwise, vote Democratic because they perceive that candidate’s platform to be more in line with Catholic teaching on a range of other issues (death penalty, welfare, health care) and thereby to outweigh the Democrat’s unfortunate position on abortion.

Stackpole avoids two common mistakes made by Catholics on the Democratic side: he does not minimize the preeminent importance of abortion as a grave abuse that might be easily outweighed by other issues; and he does not oversimplify the respective Democratic and Republican positions on other issues by claiming, for example, that Church teaching indisputably favors the Democratic policy on welfare.

On health care specifically, he is scrupulously fair both to McCain and Obama, eventually siding with Obama’s plan as being more compatible with Catholic teaching. Not that I agree with the conclusion, but it is a serious argument.

On one more general point, however, Stackpole trips. Here is the problematic passage:

Strictly “political” issues would be things like who has the best experience to be the next president, who has flip-flopped more on key issues, who is beholden to which special interest groups, whose tax and spending policies would be best for the economy as a whole, who is right about offshore oil drilling, and who has the most sensible proposals for dealing with global warming. Such questions are purely political, matters of factual analysis and prudential judgement about which Catholic Social Teaching and the Divine Mercy message can have little to say.

In contrast, he asserts, the issues of abortion, health care, and the Iraq war are “matters on which Catholic Social Teaching can shed considerable light.”

I would say, instead, that every matter that he cites has a moral dimension, and the principles of CST can shed light on them all. It’s true that there are facts, independent of CST, that must serve as the basis for judgment about how to deal with all political questions. To give Stackpole the benefit of the doubt, he possibly means to say that the very narrow question about what economic impact a particular tax policy has is a question of fact, not moral judgment. The statement could easily be interpreted, though, as meaning that tax policy is purely a political question, when it instead has all sorts of ramifications, through the incentives it creates, for the discouragement or encouragement of personal virtue, healthy family life, and the flourishing of mediating institutions (including churches). To separate neatly certain “strictly political” questions from other matters with a moral dimension is, I think, a dangerous move for any person of faith.

Which is not to say that there are important distinctions to be made. Better, however, to go with the approach taken by Archbishop John Myers of Newark, in a 2004 statement on the political responsibilities of Catholics:

Some might argue that the Church has many social teachings and the teaching on abortion is only one of them. This is, of course, correct. The Church’s social teaching is a diverse and rich tradition of moral truths and biblical insights applied to the political, economic, and cultural aspects of our society. All Catholics should form and inform their conscience in accordance with these teachings. But reasonable Catholics can (and do) disagree about how to apply these teachings in various situations.

For example, our preferential option for the poor is a fundamental aspect of this teaching. But, there are legitimate disagreements about the best way or ways truly to help the poor in our society. No Catholic can legitimately say, “I do not care about the poor.” If he or she did so this person would not be objectively in communion with Christ and His Church. But, both those who propose welfare increases and those who propose tax cuts to stimulate the economy may in all sincerity believe that their way is the best method really to help the poor. This is a matter of prudential judgment made by those entrusted with the care of the common good. It is a matter of conscience in the proper sense.

But with abortion (and for example slavery, racism, euthanasia and trafficking in human persons) there can be no legitimate diversity of opinion.

Blog author: kschmiesing
posted by on Friday, April 25, 2008

My reaction to any politician claiming to offer “straight talk” is a knowing chuckle (“yeah, right”), and that includes John McCain. So I’ve got to give credit to the so-called Straight Talk Express for a recent campaign stop in Youngstown, Ohio, where the Republican presidential candidate offered some honest and accurate comments on a contentious subject in politically risky circumstances—straight talk, if you will.

The subject was trade, and McCain defended it in a region suffering from the real or perceived effects of the extension of free trade in recent decades. In the heart of labor union-friendly, manufacturing-dependent eastern Ohio, McCain said, among other things:

The biggest problem is not so much what’s happened with free trade, but our inability to adjust to a new world economy.

Protectionism and isolationism have never worked in American history.

I can’t look you in the eye and tell you that I believe those jobs are coming back. What we’ve got to do is provide [displaced workers] with education and training programs that work.

With pro-growth policies to create new jobs, and with honest and efficient government in Washington, we can turn things around in this city.

Pro-growth policies would include, one assumes, lowering the state’s state-local tax burden, calculated by the Tax Foundation as 12.4%, fifth-highest in the nation.