The Fundamentals of Our Economy

John McCain took heat this week for saying the fundamentals of our economy are strong. In light of the drop in the stock market Monday and the ongoing crises with Fannie Mae, Freddie Mac, and a few large financial services firms, Barack Obama seized on the opportunity to portray McCain as out-of-touch. The upshot of Obama's comments are that the fundamentals of our economy are not strong.

That's an interesting sentiment from Senator Obama, who has repeatedly called for raising capital gains taxes, implying that stocks are solely a rich man's game. Yet, when the stock market dips, suddenly this is a crisis for everyone in America. Which is it, Senator Obama?

As for the mortgage issues, the Democrats need look no further than their own mirror to see where much is this problem came from. If the push for urban redevelopment with little to no oversight leads a private company to fail, what makes us think the same company with a blank check from the American taxpayer will ever be solvent?

And as for our economy, the potential loss of AIG and others should be seen as a serious issue, since these companies employ thousands and have ongoing obligations. But to equate this with a weakness in the general state of our economy is ridiculous. Are we to believe that losing a few firms (which is by no means a certainty at this point) will plunge the US into the Third World? That unemployment will rise from its current level of 6.1% to rival France (7.5%), Germany (8.4%), or the world average (30%)? That profitable businesses and organizations will grind to a halt? That entrepreneurs will stay home? That tomorrow I'll lose the ability to buy gas, food, clothes, and other necessary items? That our very system for buying and selling goods will cease and grow cold?

I think not. The strength of our economy even in slow times shows that the fundamentals are just fine. And to accept analysis from Senator Obama - who proves repeatedly that he has no grasp of economic principles - is as daunting as accepting his plans for economic growth. We can't afford to do either.