- Jun 6, 2007
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After two solid defeats in the last two national elections, the Republican Party rightly needs to do some soul searching to the deepest of levels. The true answer on this issue for the Republican Party is actually quite simple. It is in essence this on economic related issues the Republican Party has to fully care about the Middle Class and Working People, its recent record is that it only truly cares about the Wealthy and Big Business. Over the last twenty-five years life has gotten much harder for the Middle Class and Working People, they havent been sharing to a fair degree in the wealth of America. Consider how the cost of key elements of life and its associated burden has increased on working people and the middle class over the past twenty-five plus years, consider things such as: health care, energy, housing, education, etc. it certainly feels to ordinary people that our standard of living is dropping. Moreover, it usually seems over this period that the Republican Party is always looking out for Big Business and the Wealthy not nearly enough for the Working People and the Middle Class. Unless the Republican Party has a permanent profound change on economic related issues where it gets balance between the interests of Big Business and the Wealthy in contrast to the interests of the Middle Class and Working People it will not have a good long-term future.
The Republican Party has to make a permanent all their heart all their soul and all their energy commitment to not put people in leadership roles in the party that are or listen to people or entities that are ruled by greed, amorality in the sense that they view everything as a competition where their guiding principle is to maximally advance the interests of the wealthy and big business or are elitist in the sense they look down on people that hold values that truly care about working people and the middle class. This commitment has to be to only accept leaders in the Republican Party that have this balancing interests value as part of their character.
The Republican Party can demonstrate their critical transformation here by changing their positions on some major issues facing America.
1) On tax policy, the U.S. government needs more revenue. It needs to close the budget deficit, decrease the national debt, spend more in select areas and meet growing liabilities (i.e. Medicare). The Republican Party needs to support the wealthy and in certain circumstances big business paying a modest increase in the percentage of their income in taxes. In fact, some Democrats are pulling back on and want to postpone such a tax increase initiative because the economy is entering a serious recession and it wisely does not want to decrease consumer spending on our consumer based economy, the wisest course however is to recognize that some individuals incomes are so high that the modest tax increase proposed wont significantly reduce consumer spending, the Republican Party should do the right thing and support an immediate modest percentage increase in taxes on the Wealthy and Big Business with the caveat that where it would significantly hurt consumer and economy fueling spending the tax increase would be phased in.
2) Healthcare, the Republican Party needs to recognize what is right. America needs communal pricing for health insurance; otherwise, it is too expensive on Americans with health problems. America needs to essentially ban health insurance companies from banning Americans with preexisting medical conditions, America has to stop neglecting these Americans they have rights. America has to require Americas employers to pay a fair share of the health care costs for its workers because it is the right thing to do you use the labor of the American worker you help provide for his health care needs its that simple and otherwise, America will never be able to provide a means for workers in the lower income bracket to obtain health insurance and give these valued Americans their right to reasonable access to health care. America has to revamp its pharmaceutical industry in a multitude of areas, how many other developed high standard of living nations let drug companies charge whatever they want, etc.. America needs a better system than letting any entity that is interested in making a buck go into any type of medical provider business and sticking the American people with the bill. America needs a better pricing system for hospital health care that produces such a shocking disparity in charges for patients receiving the same health care at the same hospital. Etc., etc., etc.
3) Etc.
On a more immediate note, the Republican Party could demonstrate that it gets it, that is that a core change is needed, by lobbying the White House to sign on to a measured stimulus package and a package that provides additional help to the hemorrhaging home foreclosure crisis during a lame duck session of Congress for this year. The recession America is entering into looks like it could cause a lot of pain to a lot of Americans especially non-wealthy Americans, the Republican party can show it is genuinely good by working on these initiatives.
A $ 100 billion stimulus package passed during the balance of this year really seems like the medicine that America needs right now. States across the nation are projecting shocking drops in income over the next two years as well as are cities and counties across the nation, there will be cuts to vital services stemming from this revenue loss. The Federal Government should send meaningful help and not just to states but to cities and counties across the nation. Unemployment is projected to reach 8.0% during this recession, there is not going to be an adequate supply of jobs available in America for awhile for everyone that needs one, so the Federal Government needs to extend unemployment insurance it is the right thing to do.
The Congress this year should pass legislation providing additional help for the foreclosure crisis. Any economic analysis worth merit will recognize that America has to quickly find the floor for the drop in home sale prices America it is experiencing so banks and mortgage companies can have confidence in lending so that the value of the homes they are giving mortgage loans on arent dropping below the value of these loans. The flood of foreclosures is flooding the real estate market making the supply of homes for sale dramatically greater than the demand for home purchases thus driving down home sale prices. Unless this drop in home sale prices gets under control relatively quickly, it imperils Americas credit industry and securities industry putting significant parts of Americas financial industry in danger of collapse which is extremely dangerous for America because if this situation occurs this will result in the U.S. government having to provide another rescue package in the order of a trillion dollars which opens up a myriad of alarming concerns relating to the Treasury department having to go out to the investment community and raise that kind money. This helping stop foreclosure legislation should look like the following, Take Ms. Bairs, FDIC Chairwomens, proposal and fix the shortcomings. The proposal essentially is to incentivize mortgage lenders to change the terms of distressed burrowers loans to make the loans affordable by having the government provide insurance for half the lenders losses on the revised loans if there is a later default. The problem is that if there is such a government program what is to stop a flood of struggling home burrowers from just saying I am going to default on my home mortgage and get a better deal through this government program. Solution, have mortgage costs to income/asset levels requirements to ban such schemers and dont allow burrowers to have their loans cut or forgiven rather have the loan bifurcated so on the portion of the loan the burrower will not be paying monthly on that portion will have to be paid when the home is sold or the burrower dies whichever event occurs first. In regards to the problem of what is to stop lenders from just modifying the mortgage loan slightly to get the government on the hook to absorb part of the losses but not really providing the burrower the opportunity to keep their home. The Government could solve this problem with loan modification criteria where a lender if the lender wanted to participate had to reduce mortgage payments to forty percent of the burrowers income or a like figure.
This legislation should also give Bankruptcy Judges the power to amend mortgage loans in bankruptcy. However, it should only give Bankruptcy Judges this power for seven years so as to get our nation fully over its credit crisis and recession, it is only an emergency measure. The legislation should give the Judge limited discretion, the Judge should only be able to reduce the interest rate to what the FHA is charging on its loans, the burrower should have to pay a minimum level of their income ( there should be no modification for burrowers who cannot afford fair terms on their mortgage). Bankruptcy Judges should not be able to forgive loan principal only bifurcate loans where the portion of the loan the burrower or debtor wont be paying a monthly mortgage fee on will have to be paid in full with the FHA interest rate when the home is sold or the burrower/debtor dies.
The Republican Party has to make a permanent all their heart all their soul and all their energy commitment to not put people in leadership roles in the party that are or listen to people or entities that are ruled by greed, amorality in the sense that they view everything as a competition where their guiding principle is to maximally advance the interests of the wealthy and big business or are elitist in the sense they look down on people that hold values that truly care about working people and the middle class. This commitment has to be to only accept leaders in the Republican Party that have this balancing interests value as part of their character.
The Republican Party can demonstrate their critical transformation here by changing their positions on some major issues facing America.
1) On tax policy, the U.S. government needs more revenue. It needs to close the budget deficit, decrease the national debt, spend more in select areas and meet growing liabilities (i.e. Medicare). The Republican Party needs to support the wealthy and in certain circumstances big business paying a modest increase in the percentage of their income in taxes. In fact, some Democrats are pulling back on and want to postpone such a tax increase initiative because the economy is entering a serious recession and it wisely does not want to decrease consumer spending on our consumer based economy, the wisest course however is to recognize that some individuals incomes are so high that the modest tax increase proposed wont significantly reduce consumer spending, the Republican Party should do the right thing and support an immediate modest percentage increase in taxes on the Wealthy and Big Business with the caveat that where it would significantly hurt consumer and economy fueling spending the tax increase would be phased in.
2) Healthcare, the Republican Party needs to recognize what is right. America needs communal pricing for health insurance; otherwise, it is too expensive on Americans with health problems. America needs to essentially ban health insurance companies from banning Americans with preexisting medical conditions, America has to stop neglecting these Americans they have rights. America has to require Americas employers to pay a fair share of the health care costs for its workers because it is the right thing to do you use the labor of the American worker you help provide for his health care needs its that simple and otherwise, America will never be able to provide a means for workers in the lower income bracket to obtain health insurance and give these valued Americans their right to reasonable access to health care. America has to revamp its pharmaceutical industry in a multitude of areas, how many other developed high standard of living nations let drug companies charge whatever they want, etc.. America needs a better system than letting any entity that is interested in making a buck go into any type of medical provider business and sticking the American people with the bill. America needs a better pricing system for hospital health care that produces such a shocking disparity in charges for patients receiving the same health care at the same hospital. Etc., etc., etc.
3) Etc.
On a more immediate note, the Republican Party could demonstrate that it gets it, that is that a core change is needed, by lobbying the White House to sign on to a measured stimulus package and a package that provides additional help to the hemorrhaging home foreclosure crisis during a lame duck session of Congress for this year. The recession America is entering into looks like it could cause a lot of pain to a lot of Americans especially non-wealthy Americans, the Republican party can show it is genuinely good by working on these initiatives.
A $ 100 billion stimulus package passed during the balance of this year really seems like the medicine that America needs right now. States across the nation are projecting shocking drops in income over the next two years as well as are cities and counties across the nation, there will be cuts to vital services stemming from this revenue loss. The Federal Government should send meaningful help and not just to states but to cities and counties across the nation. Unemployment is projected to reach 8.0% during this recession, there is not going to be an adequate supply of jobs available in America for awhile for everyone that needs one, so the Federal Government needs to extend unemployment insurance it is the right thing to do.
The Congress this year should pass legislation providing additional help for the foreclosure crisis. Any economic analysis worth merit will recognize that America has to quickly find the floor for the drop in home sale prices America it is experiencing so banks and mortgage companies can have confidence in lending so that the value of the homes they are giving mortgage loans on arent dropping below the value of these loans. The flood of foreclosures is flooding the real estate market making the supply of homes for sale dramatically greater than the demand for home purchases thus driving down home sale prices. Unless this drop in home sale prices gets under control relatively quickly, it imperils Americas credit industry and securities industry putting significant parts of Americas financial industry in danger of collapse which is extremely dangerous for America because if this situation occurs this will result in the U.S. government having to provide another rescue package in the order of a trillion dollars which opens up a myriad of alarming concerns relating to the Treasury department having to go out to the investment community and raise that kind money. This helping stop foreclosure legislation should look like the following, Take Ms. Bairs, FDIC Chairwomens, proposal and fix the shortcomings. The proposal essentially is to incentivize mortgage lenders to change the terms of distressed burrowers loans to make the loans affordable by having the government provide insurance for half the lenders losses on the revised loans if there is a later default. The problem is that if there is such a government program what is to stop a flood of struggling home burrowers from just saying I am going to default on my home mortgage and get a better deal through this government program. Solution, have mortgage costs to income/asset levels requirements to ban such schemers and dont allow burrowers to have their loans cut or forgiven rather have the loan bifurcated so on the portion of the loan the burrower will not be paying monthly on that portion will have to be paid when the home is sold or the burrower dies whichever event occurs first. In regards to the problem of what is to stop lenders from just modifying the mortgage loan slightly to get the government on the hook to absorb part of the losses but not really providing the burrower the opportunity to keep their home. The Government could solve this problem with loan modification criteria where a lender if the lender wanted to participate had to reduce mortgage payments to forty percent of the burrowers income or a like figure.
This legislation should also give Bankruptcy Judges the power to amend mortgage loans in bankruptcy. However, it should only give Bankruptcy Judges this power for seven years so as to get our nation fully over its credit crisis and recession, it is only an emergency measure. The legislation should give the Judge limited discretion, the Judge should only be able to reduce the interest rate to what the FHA is charging on its loans, the burrower should have to pay a minimum level of their income ( there should be no modification for burrowers who cannot afford fair terms on their mortgage). Bankruptcy Judges should not be able to forgive loan principal only bifurcate loans where the portion of the loan the burrower or debtor wont be paying a monthly mortgage fee on will have to be paid in full with the FHA interest rate when the home is sold or the burrower/debtor dies.
