Why I will support President Obama

I go off on the economics for a long time, even if you don’t read that, I hope you read the section titled Historic Victory as I feel it’s the main emotion I’m feeling now and I’d love for you to  add your own thoughts or tell me where I’m wrong. I wrote this all in one sitting and never read through it again, I thought about proof reading it, but I have to go to work and it’s super long and I just want to post it now. Maybe I’ll add more to it tonight after I gather my thoughts more at work.

I knew Obama would win. Anyone who has been following politics knows that up until a short while ago it was a relatively close race. I didn’t want Obama to win. Then again, I wasn’t jumping up and down for McCain either- it was a lose-lose even to a capital r Republican. First of all I would like to mention my belief in the rule of law. The people have spoken and I think it’s pretty clear that they want this guy. Up until the financial crisis I would have thought it a pretty close race. However, during the financial crisis I knew that the trickle-down economic policies of the Republican Party took a serious blow. I intended on writing a post specific to this topic but am feelings lazy. I’m going to be a bit harsh on where republican politics has been recently, but see what you think.

Issue #1 the Economy

It seems to me that the republican economic policy has been taken out of an Economics 101 textbook while the democrats’ policy is out of Economics 102. Economics 101 says that you give businesses wiggle room and they’ll act in their best interest. Same with consumers- give them the power of choice and they will also act in their best interest. The theory is that if both parties act in their best interest, they will form to best outcome by the invisible hand of equilibrium. I remember an exercise in my economics class at BYU: we all got online at the same time– some of us as buys of books, the other half as sellers. A mock marketplace was created online where we could haggle back and forth until we could make a satisfactory deal. It was great. Anyway, in that same class we read an economic textbook that delineated what I said above, but at the very very end of the book pointed out a weakness in the model—the assumption that people will act rationally and in their best interest.

The financial crisis was an unfortunate case study that proved this point. The buyers (banks and lenders) and the consumers (mortgage buyers) both were overly greedy (irrational) and only sought their short-term welfare. The fault of the companies, they got too far into debt. The LDS Church has always voiced the need to avoid debt as much as is possible. Obviously businesses will always have revolving debt, but these businesses over-leveraged. They also engaged in some shady predatory lending. On the other side, the consumers are not without blame. There were people with NO money that tried to get HUGE mortgages. People, if you make 30k a year, what the H are you doing in a bank asking for a no-money-down loan on a 200,000 dollar house??  Will the bank give it to you? Yes. That way they can accept your first few payments before you default and they take your money AND then foreclose on your home. And all these people whining that the bank took their money and blah blah. Where is the personal accountability? If I stick my hand in a bear trap, can I cry when it snaps on me? People need to take personal accountability for their poor choices. I’m being too simplistic, but I made my point. Both producers and consumers are not necessarily rational nor do they necessarily act in their best long term interest.

Now, when I say that democrats are using the economic 102 book, they took the republican theory one step further. Without regulation, companies and people can act inappropriately and be ruined. While republicans acknowledge the need for some regulation, they want as little government oversight as possible. Problem is that sometimes the line of ‘what is enough’ is blurry. Democrats would say better safe than sorry while Republicans would suggest we trust business more to handle their own affairs. See why the financial crisis was a big blow to the Republican economic policy? If there had been more checks and balances then maybe much of the problems could have been avoided. Hard to say, but I feel it’s not a bad idea.

I am next going to address what I have the hardest time with: Big Government when it comes to the redistribution of wealth. DISCLAIMER: I don’t believe in hearing an idea and then just reacting from your gut and leaving it at that. If I lived like that I would be walking around saying “the world is round? That’s a stupid idea!” Rather I find it best to suspend your own preconceptions and actually try to make an idea work before you dismiss it. Critics of Joseph Smith went to Nauvoo expecting a close-minded narcissist only to be invited to sit down with him and express their thoughts freely. As I recall, one critic said that Joseph sat here listening attentively to all his visitor said, then pondered a bit and replied. Being open minded does not mean you accept what the other person says; I think it means that you are able to see why the other person can believes why they do. I highly doubt that Joseph ever said to his visitors, “You’re right, I’m a hoax”, but I’m sure he treated them fairly and asked himself if their criticisms were in any way valid.

Where I have more beef with liberal ideals is when they apply Big Government to the distribution of wealth on an individual level. Now Republicans believe in trickle-down economics. Companies make money, pay the workers blah blah and money trickles down to the poor people. If the companies make more money, then there is more to trickle down to the middle class. So if the economy is better off, (through capitalism), then there is more to go around. Like at a feast where the peasants are on the floor: If there’s more food on the table for the rich to eat, there’s more crumbs for the peasants to eat. Haha. Great analogy eh. But Obama believes in a trickle up effect. He thinks that if the middle/lower classes have more money then the benefits will work its way from the micro level to a macro level. First of all I’ll say where I can agree with liberal welfare: I do think life is very tough for the poor. Things are very expensive and the gap between the rich and the poor is indeed widening and it’s hard to be poor or sick now a days. I’m a terrrrrrrible example, BUT—I’m a white guy with enough money to provide for my needs. I’m a healthy guy, always have been, never done drugs, nothing… but, I have a genetic problem in my veins that required a surgery to remove them. I had the surgery, no big deal, but then I went to apply for new health insurance. I was denied. Sad day. I may have mentioned this before, but when people hear of the 47 million people without insurance they have a few different reactions. Some think “what lazy slobs!” and surely there are those who don’t get it because they’re lazy or using the money for drugs.  But I’m willing to bet that the vast majority of those Americans WANT insurance but can’t for whatever reason. Can’t afford it is definitely one. Like if you have a high deductable, and payments for low benefits, it may be  like not having insurance at all and just pay out of pocket. What will I do if I do not qualify for insurance?

That was a tangent, but really, I do think that most poor/middle class people are decent hard working moral people who are struggling. I’m going into a profession that does not make bank (therapist) and will probably end up in the middle class tier. Oh well, that’s life. Obama wants to let the Bush tax cuts for the wealthy expire. That means that people that make over $ ***,***  will pay more taxes (number withheld due to conflicting reports). Now, on one hand, the CEOs that make $16,000,000 a year will pay higher taxes, yet I have a hard time feeling sorry for him. It means he will only be making 12-14 mil instead. Boo hoo. It means he won’t be able to buy an extra boat or a few more cars, but if that money were given to a few hundred middle class families, it would make a world of difference. Historically people don’t value handouts as highly as they would if they had earned it. In Katrina we heard of the FEMA ‘credit cards’ handed out to help victims being used to buy jewelry, toys, and even implants. Amazing. Now some republicans might be saying, “Yeah! That’s jacked up that you take hard earned money away from the CEO and just give it to someone that doesn’t deserve it/ didn’t earn it!” And I see your point.

My response would be this: be honest with yourself, though being CEO of a large company is important and should be rewarded with the proper motivation to work hard, … how much of that 16 million was hard earned? In my opinion that’s way way too much money for one person to reasonably make. Maybe if you sell things, like, you’re a musician and sell 16 million $1 CDs or something. For some reason I feel that is justified more than a CEO. I think CEOs of the biggest companies should be capped at making like, 3 million tops. Think about it, $3,000,000 is A HECK OF A LOT OF MONEY to make a year! You can live very very comfortably for that. That additional 13 million was just icing on the cake and overboard. Imagine if the CEO got his 3 million a year (translation: lives very very comfortably) and the other $12,000,000 went to fixing the infrastructure, creating jobs, bringing inner city schools up to snuff (this would do away with affirmative action!!! I want to write more about this later, remind me)… and the list goes on.  If I knew that the money would go to good causes without a beaurocratic nightmare, I would be more in favor. But bearocracy has an inherent negative conotation that smacks of inefficiency. Now not many make 16 million, so maybe it’s a harder example to sympathize with, but I get more and more uncomfortable as the income drops to wherever the cut off is—around 200k? Now those people still make PLENTY and can live comfortably fo sho. But if they are enterprising then they will be hurting. This is where Joe the Plumber comes in, and these people are the biggest losers.

On one hand I want to be optimistic. I want to believe that Obama will give money to the poor, that the poor will become happy and industrious, and raise themselves out of poverty with the help of these tax cuts and more affordable healthcare, and they because they are better off, then we will all be better off. Now that I’m thinking about it, I think my reservation is again the assumption about people. I still have a hard time seeing past the “rob from the rich to give to the poor” part of the plan. I’ve talked about the potential benefits that I would be excited for, but am worried about how it works out.

Everyone agrees the Republican Party has shifted away from its fundamental principles and needs to go through a regrouping phase. I would love to see some fresh new leadership that reinvigorates the party and makes people proud to say they are republican again. Stay tuned.

Historic Victory

Ya know, despite whom you voted for, I hope you were able to appreciate the history significance of yesterday. When the ink was still wet on the Constitution, black men counted as 3/5^th of a human being.  Imagine that. I bet you can’t. Then they were freed and people were in shock at this progressive move. Can you imagine being shocked that blacks are free? I bet you can’t. When black people were no longer servants they were still inferior and segregated. Lynch mobs could perform unspeakable crimes without fear of consequence. Can you imagine that? I bet you can’t. Then black people had to ride in the back of the bus (if at all), use different restrooms and schools. Can you imagine that? If you are old, then perhaps you lived in the Jim Crow era, otherwise, I bet you can’t. Then came the civil rights movement with Martin Luther King Jr. and entourage. He had to speak to the fact that black people deserve a piece of the American dream. Imagine! Black people had to convince America that they were people too! I bet you can’t. You take it for granted. Now, this brings us to the next paradigm shift for not only America, but the world at large. Now that minorities are granted equal rights here in America, the city upon a hill, there are still racial tensions. I was raised to believe that I could be anything I want to be. Many minorities never had that freedom. If you asked 100 adults if they thought a black man could be President of the United States of America, I’d be the farm 98 of them would say “Yes, someday, but not in my lifetime.” I had a former roommate that was convinced that America was not ready for a black or woman leader. I had a lot of doubt myself as to our ability as a country to eliminate race as a barrier. Unfortunately a lot of people didn’t vote for Obama because he is black. Equally unfortunately lots of people voted for his JUST because he’s black, irrespective of his stance on the issues. A dumb reason to vote for/against someone.

But yesterday we voted for a Black President. And the nation is in shock with pride at our progress and a hope for our racial future. 50 years from now I’ll tell my grandchildren of a time when no one thought possible a black man could be president and that when one was elected, the world of possibilities changed. That the phrase, “All men are created Equal” actually meant something for the first time the many groups of people and brought them a hope they never thought they would experience in their lifetime. I’ll ask my grandchildren, “Can you imagine such a time?” and they’ll say no. By then all this will be old hat just like I don’t get choked up when I read about the slaves being freed. It’s like, “Yeah, I know… so what? I already know that”. Imagine that for black children 50 years from now you can tell them, “You can do or be anything you want to” and they’ll say, “Yes, I know. I bet you can’t.

Last night regardless of my opinion of his policies, I was very proud to be an American. I listened to his acceptance speech and was very moved. I was moved by what it meant to all the minorities watching. I saw footage of the people watching there in Chicago, those in LA, New York Times Square, Seattle, and Harlem. At each place I saw countless people crying. I knew that this moment meant something extraordinary for them, and I felt very happy for them as they made this victory personal. I also saw Obama rallies celebrating in the streets of Japan, Australia, France, England, Indonesia, and Kenya. A reporter this morning (the morning after election day) stop a Kenyan man and asked him what he thought about the fact that a black man would be the leader of the USA. The man was very excited about the implications. Now, I always frowned on calling Obama “The Chosen One” or the “Messiah”, but I was blown away at how this milestone election not only rocks the American racial paradigm, but brought a new hope to the entire world. Absolutely fascinating. I was up late last night watching coverage, talking to friends on the phone about what it meant, reading online about how people were reaction, and in a way I really do feel like I woke up in a newly rejuvenated world. Strong language, but I do think there is much good that Obama can do if he makes correct policy decision. That distinction I leave up to you the reader.

P.s. Some of the main things he says he’ll do that you’ll want follow to see if he follows through on:

He’ll let the Bush Tax Cut’s expire and the top percent will pay more taxes. The lower tiers will get tax breaks and credits.

He wants another stimulus package.

He wants to push for energy independence.

He wants to responsibly end the war in Iraq and focus on Afghanistan

He believes Healthcare to be an American right and should be available and affordable for all.

He wants to have a unified country and bring the parties together.