Washougal, WA (PRWEB) October 24, 2008
In response to Congressman Baird's remarks during Congressional questioning of Fed Chairman Ben Bernanke, congressional candidate Michael Delavar stated: "Congressman Brian Baird's questions in the House Budget Committee today demonstrated three very telling lines of reasoning. First, Mr. Baird stated that investing tax dollars into infrastructure is better than having tax cuts. In other words, rather than let Americans retain more of their own wealth, Congressman Baird wants more tax dollars used on government projects in order to get out of the recession.
"Congressman Baird then went on to claim that the national debt was largely the result of 'the tax deficit that has been created and because of the cost of the (Iraq) conflict.' It is true that the rapid increase in federal government spending is the driving force for the increasing national debt. However, to suggest that the spending should remain at that level and that taxes should be raised to cover the shortfall, implies that government, unlike the average American, need not tighten its belt during the recession.
"Then Congressman Baird claimed that the public 'doesn't yet get that we would have had a collapse,' implying that the $700 billion bailout was misunderstood by the public. Mr. Baird went on to say than Mr. Bernanke 'couldn't very well come to the public and say that,' implying that the American people were not smart enough to take the straight truth from the Fed Chairman."
Mr. Delavar continued: "I respectfully disagree. I believe the American public is well aware of the need not to bailout bad investments. I believe they did understand that this bailout was socializing the risk that the lending institutions took upon themselves, and shifting the risk to the taxpayer for Wall Street's mal-investments. The truth is often difficult to reveal because of the courage it takes to own up to our mistakes, but it is better for the American public to hear the truth, rather than propaganda. The very reason for the financial crisis is because of the actions of Congress and the Federal Reserve encouraging mal-investment, poor lending practices, and moral hazard."
Mr. Delavar concluded by saying: "The solution to the economic crisis lies in realizing that neither Congress nor the Federal Reserve has the authority or the wisdom to know how to "run the economy." Congress should not be involved in telling citizens how to invest their hard earned dollars. Instead, Congress should stop forcing lending institutions to lend beyond their means, and punish those who commit fraud. Then justice will prevail, and confidence will return to the markets."
Republican candidate Michael Delavar is running for Congress in Washington State's third congressional district. His website is: http://www.delavarforcongress.com.