StrictConstruct

While McCain has voiced support of the President’s economic proposal which would give the Federal Reserve more power, both leading Democratic Presidential contenders have voiced their concerns on the proposal. But rather than criticizing it for giving additional power to an organization which caused the crisis in the first place, they criticize the proposal because it does not, in their view, give them enough new power. Both issued statements criticizing the President for not giving the Federal Reserve more power to regulate financial markets.

In a very interesting statement, Barack Obama categorized the President’s plan as giving the Federal Reserve more power to “respond to crises,” but not the power to stop them from happening in the first place. But it is the Federal Reserve which has created the crisis to begin with. If the Federal Reserve lacked the power to create the crises, there wouldn’t be a need to find a way out of them.

If you had a history of being robbed and losing things to robbers, you would not leave your doors unlocked, or leave a floor plan map to all your valuables on the front door for their convenience, but such faulty logic is being employed here in advocating more powers be given to the Federal Reserve. If you truly desire oversight and accountability, handing more power to an organization for which there is little accountability or oversight is clearly not the solution. But with congressional Democrats beginning to consider a second stimulus package - giving money that the government does not have to people who are in trouble financially - we can expect more of this logic to come.

(Photo credit to Thirty30.)