"I am here to cut hundreds of billions of dollars out of wasteful and unnecessary spending in America”. McCain said.
“My critics ... think we're going to do business as usual in Washington. We're not.” McCain also charged Democratic presidential candidates, Barack Obama and Hillary Clinton “are out of touch” with their plans to raise taxes (on the rich) at the worst possible time.
“We’re going to cut taxes. We’re going to reduce spending.” McCain told ABC. “We’re going to put a freeze on discretionary spending.”
Last week, McCain proposed a summer gas tax reduction and to freeze congressional discretionary spending.
Democratic Candidates Have Over Committed
The looming recession that continues to expand is starting to threaten the positions of the Democratic presidential candidates Obama and Clinton who have already promised to tax the rich and expand government programs. They have over committed with a high spending agenda, based on a rebounding economy that now looks less and less likely to happen before the elections. McCain, on the other hand, has said little about the economy until now, giving him an advantage. McCain is betting on a recession and creating the foundation for his economic recovery plan, which is already distancing himself from the Democratic candidates.
McCain’s Reputation for Cutting Spending Gives Him an Edge
McCain also has a reputation for cutting spending, giving him even more evidence as the best choice to lead the country out of the ensuing recession. If the economy does not recover in the second half of 2008, John McCain could quite possibly be in the best position to win the presidency. His reputation for cutting spending, coupled with his new ideas to help the public through the recession and his leverage of long-time relationships he has in congress providing him the ability to execute this plan. Taken together, McCain is positioned far out front of the Democratic candidates with respect to an economic slowdown.
Heads Will Role
As the election approaches and the economy sinks further into recession, heads are going to role and they are going to start at the top.
Congress wants Ben Bernanke to fix the economy problems so they can continue spending like there is no tomorrow. But, there is very little Ben can do. Congress needs to stop spending and start cutting back, instead of working on their next stimulus package. Ten stimulus packages will not save the economy, and the each additional bailout will only add to major inflation problem we are not facing. In the end, congress will have to let a lot of businesses and banks go out bankrupt.