The scope of the irresponsibility and lack of accountability during the Bush years is legendary, and will only grow over time. It is both sad and maddening to see the airwaves full of the enablers of this legacy (e.g., Dick Cheney and Karl Rove, joined these days by the uber-hypocrite Newt Gingrich). The same for the intellectual architects of these failures, most notably neoconWilliam Kristol, who bounces from one major outlet to the other, from the pages of the New York Times to the Washington Post.
Ours is a culture that preaches accountability and responsibility, yet no longer practices it. This is probably our greatest national weakness; I have always contended that we get the government (and the media) that we deserve.
This culture of disregard for the consequence of one’s actions is nowhere more evident than in the public response to the housing and credit bust, and most recently in legislation aimed at improving the fuel efficiency of the cars Americans drive.
Millions of people who bought homes during the bubble now owe more on their mortgages than their homes are worth (referred to as being “underwater”). To hear them, you might think there is a god-given right that their homes would appreciate at double digits forever. If they were speculating, the downturn was simply the price of making a bad bet; if they bought their home to live in and could afford the mortgage, there should be no change in their behavior; if they bought a home they couldn’t afford, that was their mistake (and whoever gave them their mortgage).
But now tens of thousands are simply walking away from their homes and refusing to pay. This weakens the communities that have to deal with the abandoned houses, further weakens the banks, and helped lead to government bailouts that cost taxpayers tens of billions. The bailouts largely reward the most irresponsible; those who were prudent and resisted the housing hysteria are now subsidizing the foolish.
The same goes for credit cards. After running up huge debts, mainly on goods that are by no means a necessity, millions are now defaulting—and getting great deals in the process. They’re wiping out their debts by paying as little as 50 cents on the dollar. Wonderful for them, but it raises interests rates for everyone else (and depresses share prices for people like myself, who have banks in their retirement portfolios).
Perhaps most egregious, since it comes from a Democratic Congress under President Obama, is the new $1 billion “cash for clunkers” program. Owners of SUVs or trucks that get less than 18 mpg will be able to get up to $4,500 from the government to trade their old vehicle in as long as they buy one that gets at least 2 mpg more. People who own cars with less than 18 mpg get the money if they buy new cars that get at least 4 mpg more. This is another giveaway to the auto industry, it does almost nothing to improve fuel efficiency, and it actually penalizes the people who had the sense to buy fuel-efficient cars in the first place: if you have a car that gets 25 or 30 mpg, you’re not eligible for a single penny from the program.
There are serious problems when society views the government as little more than a trough at which to engorge themselves. This parasitic relationship reached its apex during the Bush Administration: lobbyists wrote legislation, jobs went to political cronies instead of the competent, the public was told they could have lower taxes and still fight two wars.
With Obama we were supposed to get “tough love” and a return to the true conservative principle of personal responsibility. Given the severity of the economic crisis, and the need to bail out the banks and the car companies, the president obviously feels he has to hold up on this message; one can only hope that it ultimately becomes central to his governing philosophy.
When those who play by the rules see irresponsibility being rewarded, they ultimately become dispirited and no longer believe in the system. They can easily become disengaged, leaving the system even more vulnerable to manipulation by those who are unaccountable and irresponsible. This is a cycle that America must avoid if it is to remain a great power.
Jason Scorse