5th District Candidates Meet At DuBois Penn State

Candidates weigh in on economy
Courier Express
DuBOIS - Although the three candidates for the 5th Congressional District often agreed to disagree throughout the debate Thursday night, all three bluntly said, "No, they would not have voted in favor of the $770 billion bailout."

The candidates met in a debate at Penn State DuBois. They are seeking to succeed Rep. John Peterson, R-Pleasantville, who is retiring after his term ends in December.

Moderator Jay Phillippone asked Republican Glenn Thomspon, Democrat Mark McCracken and Libertarian Jim Fryman how much they feel government can do to soften or prevent a recession, and if some of the problems need to be worked out without government intervention.

Thompson said a problem of this magnitude is best solved without government intervention.
"There's two kinds of solutions in Washington - there's big government solutions and there's smart government solutions. The whole Wall Street bailout, as I saw it, was a big government solution," Thompson said. "It didn't address the issues that were there."

In regard to the economy, Thompson said he is in favor of cutting the capital gains tax, which he feels would stimulate growth and investment. He'd also add incentives for businesses to invest in technologies, which would allow them to be more competitive in global markets, and he supports making the tax cuts of 2002-03 permanent.

"All that (bailout) package did was add $10,000 for every household in the United States to the national debt," Thompson said. "Something that draws up the national debt is not going to help our economy."

Thompson said the root cause of the bailout situation - mortgage firms Freddie Mac and Fannie Mae - needs to be examined closely .

"They were private sector, semi-monopolies which had full government backing. It was destined to do this," Thompson said. "One of the issues which was lacking in the legislation that was passed was the root cause was not addressed. We need to spread this across the market so if one or two run into problems, we can remain stable.
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Fryman said the most effective solution government can take to lessen a recession is to get out of the way. In his opinion, government interference is a hindrance.

"I think if they were to get out of the way this could be over in six months to a year," Fryman said. "We have to get rid of a lot of government spending. We have to get rid of the Department of Education and No Child Left Behind."

As a one-size-fits-all educational program, Fryman feels No Child Left Behind limits school boards from experimenting to find systems which are effective. He also thinks it causes school districts to spend more money.

McCracken, a Clearfield County commissioner, said the government should be setting a better example when it comes to spending.

"A good policy would be to balance the budget, build a surplus, and work to control our debt. If you think about it, if we had a government that was in good fiscal shape, when this bailout situation came on with a strong surplus the government would have been able to jump in and possibly avert this catastrophe even sooner," McCracken said.

McCracken said he is against the bailout. In January 2001, when George W. Bush took office and Republicans had control of Congress, there was a surplus of more than $250 billion surplus, he said. Between tax cuts imposed during the Bush administration and the war that resulted after 9/11, a deficit developed.

"If you're going to go to war, you need to properly fund it. They basically ran up the last eight years on a credit card," McCracken said. "We went from a $250 billion surplus to a $482 billion deficit. This was not leadership, this was a catastrophe."

Another question Phillippone asked, which was submitted by Mary Day of Clearfield, was if the candidates would hold the management of failing financial institutions accountable for the mismanagement and abuses, which lead the institutions to fail, and would they consider prison terms for them.

Fryman said those involved should be held accountable, and at some point, the government needs to stop its involvement and put a stop to it.

"We need to stop these bailouts," Fryman said. "These greedy people are acting in their own self-interest, but they're following the lead of Congress and the presidential administrations. What they're saying is, do what you want and we'll take care of you. The government needs to stop this and set an example."

According to McCracken, what happened is criminal.

"This kind of incompetence and criminal activity shouldn't be taking place because they are eroding our economy and it's hurting the working people of this country," McCracken said.
When Phillippone asked where the blame in the bailout situation should fall, McCracken said it shouldn't fall on young people who want to own their first home as that is part of the American dream.

"I think where the problem is is there are people who should be smarter at looking at these loans," McCracken said. "I know people in the area who have gone out and gotten a home they couldn't afford. That is where you need people from these lending institutions to step in and advise these people to not buy a house that is so expensive."

Thompson said those involved should be held accountable. He added one of the reasons he is against the bailout plan is there was no action to effect the existing severance packages, which are worth millions of dollars.

"If they violated criminal acts, they should definitely go to jail," Thompson said. "One of the things that caused this situation is partisan politics. This whole thing started back in the Carter administration when the idea was every American should be able to buy a home. What they didn't say is whether they can afford it or not."

Thompson said the mortgage crisis has hardly been felt in this area, especially in comparison to markets in California, Arizona, Texas and Florida.

"That's because we have local banks and local lending institutions that know their customers," Thompson said. "What caused it though? Irresponsibility."

In his opinion, those who have been irresponsible are this Congress and others going back, lenders and borrowers alike.