Notes on Economics - Politics, Privatization and De-Regulation

Continuing to exhaust the supply of unused notes, here are a few more:

Chris Mathews points out the middle class American voter goes conservative in a good economy in the belief he will be the next millionaire, but when the economy sours he goes liberal, seeing himself as the next guy in the bread line.

Under Bush, the use of private contractors by the Federal Government doubled. Obama is embarking on a review program to eliminate or tighten up such contracts.

Bush pushed privatization of public highways, taking advantage of cash strapped local governments and allowing the Federal Highway Trust Fund to border on bankruptcy.

From 1995 to 2005, public utility ownership of power plants fell from 90% to 63%, supposedly to stimulate competition and bring down rates, but the rates did not fall. De-regulation did bring lower fares for airlines, resulting in lousy service and multiple bankruptcies. Long distance de-regulation brought lower rates, but competing technologies was also a big factor.

Greenspan, under Clinton, unwisely removed the barriers between investment and commercial banks that had been set up during the Depression.

On better FNMA and FHMC oversight, Chuck Hagel proposed legislation in 2005. A year later, after a critical Federal report, John McCain signed on as a co-sponsor. Democrats favored oversight, but not a provision in the bill that limited the size of the portfolios. Builders and realtors opposed the bill and it did not make it out of the Republican controlled Senate committee considering it.