Tags: jacob | wolinsky | gop | republicans | plan | day | after

If Republicans Win, They Should Plan for the Morning After

By    |   Thursday, 07 Oct 2010 02:54 PM

Every day, the pundits on TV are predicting how many seats the Republicans will pick up in the House and whether they will win the Senate on Election Day.

However, no one is asking about what will happen on the next day.

Regardless of the outcome of each specific race, it is likely the Republicans will have enough influence to keep President Barack Obama in check.

However, what will they do in power?

If the GOP wants to keep the seats they won in Congress they had better implement some serious economic changes.

The Republicans must impose a real financial-reform plan. Obama’s recently passed plan was a complete sham because it didn’t reform Fannie Mae or Freddie Mac, among the main culprits in the financial crisis. According to economists Mark Zandi and Alan Blinder, Fannie and Freddie losses may cost taxpayers a total of $305 billion.

So what would be a solution to resolve this problem? Fannie and Freddie must be privatized and split up to guarantee that they are no longer too big to fail. The two entities are now owned by the government — and the government is using them to try to keep mortgages rates low. It isn’t the government’s job to artificially prop up the housing market by using Fannie and Freddie to buy more mortgages. Let the private sector take care of the housing market.

On a related note, there must be balance. One way to do this is by ending the mortgage-tax reduction. It doesn’t make sense that the government encourages reckless home purchases by luring people with promises of tax write-offs. Again, keep the government out of the housing market.

Another way the budget must be balanced is to increase the retirement age for Social Security. This move will help keep Social Security solvent. This is an issue of such basic logic but Nancy Pelosi refuses to compromise on it.

The reason why I say it is simple logic is because Social Security was set up when people retired at 65 and died at 70. Now people are living another 10 or 15 years on average. The problem will get much worse as the life expectancy increases dramatically over time.

When I had a conversation recently with the managing partner of a large life-insurance company, she told me financial planners are now planning for people to live up to 120 to 130 years.

So does Pelosi expect people to retire at 65 and collect Social Security for another 65 years? That is absolutely ludicrous. This is an issue the GOP must address immediately.

So will the real GOP please stand up?

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Wolinsky
Every day, the pundits on TV are predicting how many seats the Republicans will pick up in the House and whether they will win the Senate on Election Day. However, no one is asking about what will happen on the next day. Regardless of the outcome of each specific race,...
jacob,wolinsky,gop,republicans,plan,day,after
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2010-54-07
Thursday, 07 Oct 2010 02:54 PM
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