Two days after his administration announced a $700 billion bailout policy for Wall St. banks burrdened by the current mortgage crisis, President George W. Bush on Wednesday said the Un
ited States was in a serious financial crisis as he tried to convince Americans to support a $700 billion financial rescue plan.
ited States was in a serious financial crisis as he tried to convince Americans to support a $700 billion financial rescue plan."We are in the midst of a serious financial crisis and the federal government is responding with decisive action," Bush said in a televised national address.
Bush called for non-partisan support for a plan that have polls saying the public is leary of. (See Big Government Post above). Many questions face us in this many governing and politics face us as we examine what's going on.
First, the proposed policy plan, with AP gov't. terminology.
Question: What is the difference between fiscal and monetary policy?
Answer: Fiscal = budetary choices of taxing and spending
Monetary = federal reserve decisions on interest rates and monetary supply.
So...The bailout plan proposed, but likely to change as it met resistance in Congress, by Treasury Secretary Henry Paulson, would be a fiscal policy. Aside from Paulson was Fed. Chairman Ben Bernacke. If the Federal Reserve lowers interest rates or increases money money in cirrculation, it would be a monetary move.
Meanwhile, the Politics? With the first presidential debate scheduled for Friday, John McCain wants a postponement. Is that because he wants to get back to Capitol Hill to govern (hasn
't been there for many key votes like the GI-Bill this campaign season) or because he is playing politics?
't been there for many key votes like the GI-Bill this campaign season) or because he is playing politics?Other questions, can a lame duck president, with an approval rating of 19 percent, get Congress to get behind his plan? And, how much can a president really do about the economy, anyway?
1 comment:
I think that the republican president George Bush was supporting this economic plan because he does not have to worry about the "politics" of his choice. He is not up for reelection, and is not actively involved in any other campaigns, which means that he is free to support this bill. I am glad that the bailout plan did not pass through the House of Representatives, even though it caused the Dow to drop over 700 points in a day, because it was a hastily written piece of legislation that is not as well thought out as it should have been. I think that another one will pass, and hopefully soon, but the bill writers and proponents of it need to focus on making the public aware of HOW this bill will work and WHAT it will do for the taxpayers whose money is going into Wall Street. The public did not really understand what this plan was going to do for them because it seemed like it was going to the greedy in Wall Street. This is why many politicians voted down the bill, it was not popular with the public and chances of reelection.
Overall, I think that this is an opportunity for a better piece of legislation to be written that will help the average citizens and companies that did nothing wrong through this economic crisis.
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