News-Record.com

Wednesday's lead editorial.

The economy is nothing to play politics with, so leaders in Washington of both parties need to work for the American people rather than cast blame or seek partisan advantage.

When people see their stock portfolios and future retirement income dive, they become frightened. Monday was scary. Tuesday was a much better day on Wall Street, but mainly because investors still believe Congress will approve some kind of rescue measure after the first try failed.

The worry in Washington seems to have at least two dimensions: Most voters oppose what they see as a boondoggle bailout for greedy millionaires whose mismanagement made the mess in the first place; and the proposed cure might be worse than the disease.

To the first point: Members of Congress are elected to lead, not follow. If they won’t take action that’s necessary for the general good, even if unpopular, they don’t deserve to hold public office.
To the second: There’s another opportunity to fix whatever was wrong with Monday’s plan, and the Bush administration and Congress better make the most of it.

Before a new measure arrives for a vote, however, the administration and congressional proponents must do a better job of communicating its importance to the American people. They must relate the tremors on Wall Street to the likely aftershocks on Main Street. This is not only a collapse of reckless financial institutions, but a credit crisis. If unchecked, it will mean people won’t be able to borrow money to purchase homes, cars or other large items, in turn denying income to everyone whose living depends on those transactions. Large and small businesses that also rely on access to credit will suffer. Layoffs will result, which in turn will further restrict the amount of money circulating through the economy. If Americans understand more clearly what’s at stake, they will be more inclined to support strong action to avert a disaster.

The irony is that too much risky lending and foolish borrowing helped bring about this trouble. From the federal government, which owes trillions, to ordinary consumers, strapped with crushing mortgages, maxed-out credit cards, big car payments and college debts, this is a country that’s lived beyond its means. The pinch is so tight that shoppers snap up cheap goods from China rather than support domestic manufacturers, forcing the local folks out of business. The transition to new, high-tech industries has been too slow and not inclusive enough, partly because of insufficient investment in education and infrastructure.

Now there’s a need to patch a huge hole in the economy, even though $700 billion will sap resources from more productive initiatives. It’s easy to see why some bailout opponents fear the correction, or at least question the cost and urgency. But sinking can’t be an option. Nor can political posturing. It’s time for bipartisan agreement on the basics of an economic rescue this week.