McCain: Fundamentals of Economy are 'Strong' but 'Threatened'
At a morning rally in Jacksonville, McCain noted what he called "tremendous turmoil in our financial markets and Wall Street,'' but continued to say he believes the economy is sound -- a line from his stump speech for which Democrats have mocked him.
"Our economy, I think, is still -- the fundamentals of our economy are strong, but these are very, very difficult times,'' McCain said. "I promise you, we will never put America in this position again. We will clean up Wall Street."
Sen. Barack Obama seized on McCain's assessment of the health of the economy, blasting the Republican for being "disturbingly out of touch" with the reality that everyday Americans face.
"I just think he doesn't know," Obama said in Grand Junction, Colo. "He doesn't get what's happening between the mountain in Sedona where he lives and the corridors of Washington where he works.... Why else would he say, today, of all days -- just a few hours ago -- that the fundamentals of the economy are still strong? Senator -- what economy are you talking about?"
By the afternoon, McCain had altered his message. Speaking before a town hall meeting with a Hispanic organization in Orlando, McCain sought to explain that his earlier comments had been intended as praise for the resilience of American workers.
"And my opponents may disagree, but those fundamentals -- the American worker and their innovation, their entrepreneurship, the small business, those are the fundamentals of America, and I think they're strong," he said in Orlando.
But a few moments later, he described the country's current financial situation as "a crisis" and repeatedly said he was concerned about the fundamentals of the economy.
"I know Americans are hurting,'' McCain said. "The fundamentals of our economy are at risk.... And those fundamentals are threatened, they are threatened and at risk because some on Wall Street have treated Wall Street like a casino.''
He repeated that message several times, each time sounding more worried and less reassuring.
"Our economy is at risk today, have no doubt how serious this problem is,'' McCain said. "We've got to fix this economy, which the fundamentals of are at great risk right now.... I want to promise you that it's my highest priority. "
In separate appearances, McCain and his running mate, Alaska Gov. Sarah Palin, both assailed a corporate culture on Wall Street that they promised to change if elected. They condemned payouts to the CEOs of financial institutions which are now failing.
"We've seen self-interest, greed, irresponsibility, and corruption undermine these hardworking American people," McCain said in Orlando as he campaigned with former Rep. Jack Kemp, Florida Gov. Charlie Crist, former Florida Gov. Jeb Bush and others.
"We're going to reform the way that Wall Street does business and put an end to the greed that has driven our markets into chaos," he said. We'll stop multimillion-dollar payouts to CEOs that have broken the public trust."
Palin, holding a solo rally in Golden, Colo., vowed that "John McCain and I are going to put an end to the mismanagement and abuses in Washington and on Wall Street."
Obama took up the same theme. He called the economic news "the most serious financial crisis since the Great Depression" and attempted to link the failures of the institutions to Bush policies that McCain supported.
"I certainly don't fault Senator McCain for these problems," Obama said. "But I do fault the economic philosophy he subscribes to. It's the same philosophy we've had for the last eight years -- one that says we should give more and more to those with the most and hope that
prosperity trickles down to everyone else."
Obama also lashed out at CEO salaries, releasing a letter in which he had urged regulators to block golden parachutes for Fannie Mae and Freddie Mac executives.
"Last week, while John McCain praised the plan to rescue Fannie and Freddie without raising any concerns about a golden parachute for their CEOs, I urged Secretary Paulson and Director Lockhart to reject these multimillion dollar bonuses," Obama said. "And I am glad these bonuses will not come to pass."
McCain also released a new television ad, titled "Crisis," which argues that McCain and his running mate, Alaska Gov. Sarah Palin, will clean up Wall Street and impose "tougher rules" without "special interest giveaways."
"Our economy in crisis," the ad says. "Only proven reformers John McCain and Sarah Palin can fix it....Leadership, experience for the change we need."
McCain officials continued to press their case that Obama would raise taxes, a move they said would worsen the financial crisis and threaten the pocketbooks of middle-class taxpayers (Obama's plan does not raise taxes on households earning less than $250,000 a year.)
"Today's economic news is a reminder of how out-of-touch Obama's plans to raise taxes are." said Republican National Committee spokesman Alex Conant. "With Americans' jobs and savings in jeopardy, this is no time to raise taxes like Obama proposes."
In Jacksonville, McCain said that "We believe that the time had come and gone that the taxpayers should be viewed as the solution to the problems that are not of their making.''
He called for an "environment'' of "robust energy supplies, lower inflation, control health care costs, access international markets'' and reducing the "burden" of government.
Without specifics, he said "The McCain-Palin administration will be replacing the outdated patchwork quilt of regulatory oversight and bring transparency and accountability to Wall Street.''
Damien LaVera, a spokesman for the Democratic National Committee, accused McCain of repeating "widely debunked lies about Barack Obama's record on tax cuts and his false claim to have never requested a single earmark or pork project for the state of Arizona."
By Robert Barnes and Michael D. Shear, The Washington Post, September 16, 2008
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