A central tenet of Mitt Romney's campaign is that President Barack Obama does not understand how markets work and, therefore, is incapable of leading our country out of its current economic malaise. Governor Romney says that he does. One must consider his claim in the context of his statement that he would not have bailed out GM and Chrysler but rather allowed the free markets to fund their restructuring. While this position is ideologically appealing to conservative Republicans, and is a prerequisite for Mr. Romney's nomination by his party, his position ignores critical facts that were clearly articulated by Alan Greenspan when he testified before a committee of the House of Representatives.
Mr. Greenspan said that toward the end of the George W. Bush presidency, the United States experienced a "once in a life-time credit tsunami" and that the government was required to take unprecedented actions to save the economy. When President Obama took office, the credit markets were still so badly damaged that they were incapable of funding a restructuring of GM and Chrysler. According to the Republican governor of Michigan, without the immediate intervention of the Obama administration, 1.1 million manufacturing jobs in the United States would have been lost. There can be no doubt that this would have caused further, severe damage to the credit markets, to the value of our 401k plans and to the prosperity and security of the United States. Many more jobs then would have been lost.
Mr. Romney has shown that he does not understand what is required to lead us out of our economic malaise. His election as president would be disaster for our country.
William Wright, BaltimoreCopyright © 2015, The Baltimore Sun