Monday, November 12, 2012

Unchallenged Democratic Assumptions:

The Great Recession was caused by George Bush/Corporate greed:  Actually, the "great recession" was caused by overvalued housing prices (a bubble) and bad mortgages.  The over valued housing prices set us up for a fall, but it was the bad mortages - a plan pushed by our federal government since the Clinton administration that forced banks to make loans to people who would not normally qualify for home loans that caused the recession.  While getting people in their own homes is a laudable goal, getting people who can't afford their mortgage payments in a home was a recipe for disaster, and is what caused the recession.  Some Democrats like to blame the practice of bundling of mortgages as one of the main causes of the recession.  Untrue, bundling good mortages is not a problem, and would never cause a problem, it's the bundling of bad mortgages that created a mess.

The Clinton Years were an economic "happy days" scenario created by Democratic policies:  Actually, the economic growth and budget surpluses were caused by two things, the tech boom, and the peace dividend.  The tech boom spurred investment, GDP growth, stock market increases and job gains, and the peace dividend (Reagan/Bush winning the cold war)  reduced government military expenditures and helped reduce the deficit.  It wasn't so much anything the Clinton Administration did, or didn't do, they were simply the beneficiaries of the situation that they found themselves in.

When fighting for votes, frankly think it's best if Republicans don't just let the above assumptions stand.  Why?  Because some of the policies that Republicans are backing - and therefore need to defend, don't hold up well unless the above assumptions are refuted.

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