Democrats Knock McCain's Economic Views
Friday, March 28, 2008
Sens. Barack Obama and Hillary Rodham Clinton yesterday sharply criticized presumptive Republican presidential nominee John McCain's views on the housing crisis, illustrating a wide gap between the two parties on how to fix the ailing economy.
Sen. McCain and the Democrats long have sparred over U.S. policy toward Iraq, but the collapse of the subprime lending market and subsequent softening in other sectors of the economy have opened a second front in the competition among the presidential rivals.
In an economic speech on Tuesday, McCain (Ariz.) said he supports government assistance for Americans facing home foreclosure because of the turmoil in financial markets. But he declined to embrace the kind of government intervention for individuals and institutions favored by Clinton and Obama, arguing that "it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers."
Obama (Ill.) and Clinton (N.Y.) have pounced on that quote in an effort to paint McCain as indifferent to the problems of ordinary Americans. Speaking in New York yesterday, Obama characterized McCain's views as amounting to "little more than watching this crisis happen." Clinton, appearing in Raleigh, N.C., said McCain prefers to ignore the crisis or simply blame families for their problems.
"Sometimes the phone rings at 3 a.m. in the White House and it's an economic crisis," Clinton said, alluding to an ad she ran against Obama weeks ago. "And we need a president who is ready and willing and able to answer that call." McCain's plan, she said, does virtually nothing to ease the credit or housing crisis. "It seems like if the phone were ringing, he would just let it ring and ring and ring," she said.
Stung by the Democrats' rhetoric, the McCain team fought back yesterday. Carly Fiorina, the former Hewlett-Packard chief executive who was recently tapped by McCain to head the Republican National Committee's 2008 victory fund, accused the Democrats of "mischaracterizing" McCain's remarks, calling their criticisms "politics of the worst sort."
In a statement aimed at blunting the Democrats' attacks, McCain said, "We have a responsibility to take action to help those among them who are deserving homeowners." But he reiterated his opposition to big bailouts for undeserving speculators or financial institutions. "There is a tendency for liberals to seek big government programs that sock it to American taxpayers while failing to solve the very real problems we face," he said.
The argument over the housing crisis illustrates broader differences in economic philosophy between McCain and his Democratic rivals. On taxes, McCain has reversed his opposition to President Bush's 2001 tax plan and now supports making the cuts permanent. Obama and Clinton want to return income tax rates for the wealthiest Americans to the levels of the 1990s.
On health care, Obama and Clinton would spend around $100 billion to provide universal coverage and would provide the option of buying into the same plan used by federal workers and lawmakers. McCain has emphasized a more limited plan of tax credits for people to buy private insurance.
On trade, the Arizona Republican has been a vocal proponent of international trade pacts such as the North American Free Trade Agreement. Obama and Clinton have pledged to renegotiate NAFTA if elected.
While all three candidates backed an economic stimulus plan signed by President Bush last month that will send checks of up to $600 to individuals over the next few weeks, Obama and Clinton have argued for much more to be done, both in housing and in the overall economy.
Obama -- who was introduced at Cooper Union college by New York Mayor Michael R. Bloomberg, an independent whose endorsement all three candidates covet -- outlined what he called a second stimulus package that would cost about $30 billion and include assistance to individuals and areas hit hard by the housing crisis. It would also extend unemployment insurance for those who have lost their jobs. "If we can extend a hand to banks on Wall Street, we can extend a hand to Americans who are struggling," he said, referring to the government-engineered rescue last week of investment bank Bear Stearns.