Our Economy Ran Into the Sand

On most Americans mind lately is the economy. Our first thought of the economy is the lack of jobs with unemployment rate hovering at 9.1% average. The two major political parties cannot find a solution so they spend unnecessary energy pointing fingers at each other instead of solving the problems with our economy. Playing politics has proven to actually be detrimental to the process of solving the problem. Recently it came time to adjust the nation’s budget by raising the country’s debt ceiling. Our two major political parties have been infiltrated by an ultra-conservative entity called the Tea Party. The Tea Party consists of a segment of populous that is anti-government, fiscal and social right wing idealist. They won influence into the political process by organizing and taking over the traditional Republican Party. With the new found influence over the Republican majority, the Tea Party refused to allow the nation’s debt ceiling to be raised without a lengthy argument. They held the process hostage in an attempt to institute legislation that would defund entitlements, while lowering taxes for the rich. The whole debacle caused America’s credit rating to be downgraded for the first time in history. The Tea Party then blamed President Obama’s budget for the cause of the downgrade when the office of Standard and Poors clearly stated the cause was their inability to release the economy hostage.


During the elections of 2010 the Tea Party was instrumental in the resurgence of the U.S. House of Representatives becoming a Republican majority. The American voters overwhelmingly voted conservative due to the looming economy storm approaching. The Tea Party with the help of traditional Republicans convinced America our failing economy was due to policies put in place by President Barack Obama and a majority Democrat Congress. Ironically, with the exception of a few policies that directly affected the economy, most of the policies that plunged the economy into the red were made and instituted by former Republican President George W. Bush who inherited a budget surplus from his predecessor. President Bush took the country to war after we were attacked by Osama bin Laden, leader of an extreme Muslim terrorist group called al Qaeda. Al Qaeda flew two passenger jets into the two World Trade Center Tower’s in New York, while simultaneously flying another into the Pentagon in Washington, DC. A fourth passenger jet was to be crashed into the White House, but brave American passengers thwarted the attack causing it to crash into a field in Pennsylvania. The whole nation, Republicans and Democrats, with few exceptions, were lead and rushed into war with Iraq to overthrow Saddam Hussein. Saddam Hussein had nothing to do with the terrorist attack on America, but Bush and some of his Neo Conservative administration saw the opportunity to make a costly war with Iraq due to the country’s sentiment over being attacked by outside forces for the first time in history. Within hours we knew who was responsible for attacking us. It became clear that it was Osama bin Laden and al Qaeda from bases in Afghanistan and not Saddam Hussein in Iraq. When the Taliban government of Afghanistan was asked to turn over members of al Qaeda responsible for the attack, they vehemently refused. A new doctrine was constituted, the Bush Doctrine, which loosely states any government that harbors enemies of America also become enemies of America and are subject to be attacked. The whole incident called 911, named for the date it took place, plunged the USA into war on two fronts. One war marginally justified and the other totally not justified, and neither war placed into the nation’s budget.

The cost of fighting two expensive wars and the attempt to establish democracies in both countries put a financial burden on the American tax payers while it benefited the industrial military complex of America. Meanwhile several nations who were lured and enticed to assist us in our war frenzy found their budgets were strained also. As was the attack by al Qaeda on America, there became again the opportunity for Neo conservatives to take advantage of the situation. They quickly attributed worsening economies to entitlements for its most needy citizens. A campaign was launched to paint entitlements as the one reason for the whole worlds failing economy. I need to add that there was a housing mortgage implosion due to opportunistic Wall Street speculators and complicit banks.

Adjustable mortgages were granted to people who did not have the means to repay banks after the full interest rates matured. Banks and mortgage companies did not scrutinize the ability for many of the mortgagees to repay their loans because the financial institutions were systematically bundling and passing those toxic loans to speculators. When the mortgagees defaulted on loans they never should have received, the massive quantity of those loans caused mortgage holders to go into default also. The chain reaction was devastating to the whole world’s economy. The blame for those defaulted loans was placed squarely on those unsuspecting borrowers that assumed the banks issued the loans because they were confident of the ability for repayment. In reality those loans were granted solely for the profit of writing them and passing them on to the next speculator like a hot potato.

America has faced an attack on its major financial city, two unfunded wars, Katrina, and several other major storm damaged cities, while trying to compete in a global market rift with cheap labor and unregulated manufacturing. Practically every economy debilitating event has pounded wave after wave on our economy. What have kept the American people afloat in theses trying times have been social safety nets put in place by Democrat and moderate Republicans. The image of America would be quite different if the 9.1% unemployed didn’t have unemployment compensation to exist on during the prolonged phase of economic strife. Unfortunately conservative Republicans believe the safety nets are the culprit of our failed economy. They disregard all other factors that a wreaking financial havoc to pin the blame on those citizens who exercise the use of our safety nets. The more extreme sect of Republican conservatives again sees the opportunity to overreach and attempt to destroy and disassemble some old pet peeved social programs they never were in favor of. Programs and institutions like, Social Security, Medicare, and government backed mortgages, the department of education, labor unions, and the whole government itself if possible. Just like going to war with Iraq, conservatives have declared war on the wrong enemy. My hope is we fair minded sensible liberals will resist the assault or at least put up a better defense than we did when we agreed to give George Bush permission to plunge our economy into the sands of Iraq.