Republicans not to blame for current economic situation

    When I first read that House Republicans, along with nearly half of House Democrats, had voted down the proposed Wall Street bailout, my initial reaction was one of surprise, even shock. After all, the President of the United States, the Secretary of the Treasury, the Chairman of the Federal Reserve and the leadership of both parties in Congress had assured the American people that this measure was absolutely necessary to save the American economy. How, then, could 228 legislators vote it down?
    On further reflection, it occurred to me that perhaps what we witnessed on Monday was not the mindless jump of 228 lemmings over a financial cliff, but rather an astonishing act of political courage. For weeks, the American people have been bombarded with attempts by Democrats like House Speaker Nancy Pelosi (D-Calif.), Rep. Barney Frank (D-Mass.) and Sen. Barack Obama (D-Ill.) to lay the current economic mess at the feet of President George W. Bush and Sen. John McCain (R-Ariz.). They blame Republicans for deregulating the financial markets and turning a blind eye to corruption. Though many Republicans do bear at least some blame for the meltdown, the charges Democrats have leveled at Republicans apply far more accurately to themselves.
    The trouble brewing in our financial industry has not been a secret to Republicans. McCain gave a speech on the Senate floor in 2005 demanding that Congress step in to stop the abuses of Fannie Mae and Freddie Mac, while at the same time, Barack Obama was the second-largest recipient of political contributions from Fannie and Freddie.
    In 2004, a delegation of House Republicans, led by Reps. Ed Royce (R-Calif.), Richard Baker (R-La.) and Don Manzullo (R-Ill.), called for an investigation into the practices of both of those institutions and demanded that reforms be implemented. Predicting that these institutions would collapse and that the government would try to stick the taxpayers with the bill, the Republicans called for a new, tougher regulatory system.         They were shouted down by Democrats who claimed that the Republicans were wasting everyone's time trying to "fix something that wasn't broken," to quote Maxine Waters (D-Calif.). Frank said there was no evidence of "safety and soundness issues." Many Democrats went much further to silence dissent: Rep. Lacy Clay (D-Mo.) likened Republicans to the Klan, suggesting that the entire issue was a "political lynching of Franklin Raines" (the African-American CEO of Freddie Mac). Thus by using obfuscation and intimidation, the Democrats succeeded in foiling Republican attempts to fix things before they got too bad.
    So now Democratic chickens have come home to roost, but like the individuals who bought houses out of their price range, and the banks that sold to them, the Democrats, along with the Bush administration, have thrown personal responsibility to the wind and have passed the buck to the American people. Until Monday, it looked like we were going to have to foot the bill: $700 billion.
    This proved too much for many representatives who had come into office on the promise of a smaller, fiscally responsible government. Under President Bush, federal spending has increased dramatically. With Bush and Pelosi, these Republicans have been caught between a rock and a hard place. While we are fighting two extremely costly wars, they have been forced to also swallow Bush's Medicare prescription drug entitlement and huge agricultural subsidies. They have watched as the new Democratic Congress pulled out most of the remaining stops to reckless spending. Frank spearheaded a $300 billion bailout of those individuals who bought houses they couldn't pay for. Last week, Congress decided to toss $25 billion to the American auto industry to subsidize its penchant for making cars Americans won't drive.
    In short, House Republicans had had enough. In the midst of a general panic, while most were loudly demanding that the government step in and make the problem go away, they kept their cool and refused to bow to pressure. They recognized that every time there is an economic crisis, the shortsighted see it as evidence that the government should go still further in the socialization of the economy. Knowing that the injection of politics into the market had greatly contributed to "housing bubble," they balked at further politicizing and collectivizing the solution. The financial institutions had engaged in unsound practices, and it is only natural that they must now face the consequences of the correction. Moreover, the Republicans questioned why irresponsible borrowers and reckless lenders are receiving so much public largesse, while the average American, who chose not to buy a house he couldn't afford, and who decided not to spend money he didn't have on get-rich-quick schemes, is now paying for the foolishness of others.
    It took remarkable courage and integrity for these representatives to defeat the bill that many said was the last hope for our economy. Though the doomsayers predicted a crash in the days following the bill's rejection, by Tuesday at noon, stocks had actually risen and the dollar had jumped against the Euro. It seems that even without the heavy hand of government guiding it, there is still some resiliency in the American economy. Moreover, a stand has been made for personal responsibility. Long accused of favoring wealthy corporations over average Americans, the Republicans have taken this chance to prove their integrity; just as they opposed government unduly burdening private enterprise, they also abhor government propping up unsound businesses. For their political courage, America owes these lawmakers a debt of gratitude.


Michael Hawley is a sophomore who has not yet declared a major. He is also the President of Tufts Republicans.