A news article indicates that the Bush administration very well might try to get its hands on the second half of the $700 billion Congress designated for financial bailouts. I’ll admit, I’m less certain that the bailouts are the wrong thing to do than I was certain that invading Iraq was the wrong thing to do, but the dynamics were fairly similar: “CRISIS! DO THIS NOW NOW NOW NOW!” And Congress stampedes mostly in a bipartisan fashion in whatever direction the Bush administration pushes them. Then, predictably, there is little to no transparency about where the money is going.
I suspect without knowing that the Bush administration approach to this financial crisis has some “starve the beast” impulses. “Starve the beast” is the notion that, if the government spends enough and goes broke enough, it will have to retract out of financial necessity. Nevermind that it’s a little like trying to lose weight by first getting morbidly obese.
Near as we can figure, the bailout money is going only to the financial service industry and not to parts of the economy where middle class citizens actually build stuff. Maybe there are legitimate reasons for this, but there has been at least a whiff of class warfare. When manufacturers come to Congress asking for money, there is a lot of talk about union workers making too much money and questions about executives travel arrangements. When banks come asking, there is little discussion about the income packages of its employees or of the bank CEO’s travel arrangements. (Perhaps because they were coming from the east coast instead of the midwest.)
I also suspect that there is some last minute plundering going on, some smash and grab before Obama takes office which may have the additional benefit of hindering him from going all FDR on the country. There are some families in this country who were deeply scarred by FDR and the changes he made in this country. I wouldn’t be surprised if George H.W. and Barbara scared a young George Bush with bedtime stories about That Man in the White House coming to get him if he didn’t behave. No doubt, variations of progressive horror stories passed down from the Rockefellers and Harrimans to Samuel Bush and then to Senator Prescott Bush and thence to President George I.
Just speculation on my part, of course.