No Time for ‘Politics as Usual’

The U.S. economy is teetering on the edge of a cliff — with a hungry bear nipping at its heels. Yet, we cannot turn around and return from where we came — that would be as disastrous as stepping off the cliff.

We have but two choices — turn right or turn left. However, we have no time to contemplate what might await us at either turn. There is no time to debate what the optimal solution might be because stepping off the cliff or awaiting the bear to come upon us are not viable options.

Bush, Paulson and Bernanke have put forward a monumental and historic plan that many seem eager to debate or find flaw with. It might not be hard to do — but what politician can’t find flaw in the other party’s plan? The problem is the crisis facing the U.S. economy and the American public is so dire that such rhetoric will surely push the economy over the cliff or render us helpless to the fast approaching bear.

Business as usual on Capitol Hill is not an option. Any inaction or delay will have the same unimaginable end result for the economy. The leadership behind the plan is showing that they are doing what is needed — at least in the short term — to prevent imminent economic disaster. We can debate how we got here and who is to blame at a later date — we do not have time for that now.

The principal element of the proposed government solution is that the government is investing in — not simply bailing out — defaulting loans, including mortgages. This is critical to restoring confidence in the capital markets and unfreezing the credit markets, which are the foundation for keeping businesses viable.

While it may seem that Wall Street and its executives are being bailed out as well, that too is open for debate at a later date. In the short term, we cannot afford not to take action. We cannot afford to succumb to politics as usual. Keep in mind that the architects of this plan were very savvy to structure this as an investment because it creates considerable upside or potential profit over the long term.

There is so much that we and our political leaders can argue about regarding a $700 billion economic plan. It is not surprising given the crisis we are facing. But there is a time and place for everything. Now is the time to do what needs to be done because by not doing anything our fate is that we’re quickly approaching another Great Depression.

Visit www.armstrongwilliams.com .