Herman Cain Exposed: Economically IncompetentSubmitted by danbeaulieu on Thu, 10/13/2011 - 22:31
I have seen several headlines in the recent past that Herman Cain’s economic knowledge is just what we need to get our economy running again; the “Cain-train” as some call it. Serving as ex-Federal Reserve chairman of the Kentucky branch from 1992 until 1996, why wouldn’t American’s trust his economic prowess? To be honest, until I scrutinized his 9-9-9 plan and read into his economic history, I bought into the “honest businessman” image. I encourage readers to drop all superficialities and examine each candidate’s economic histories as America cannot afford any more mistakes.
I have already gone over Herman Cain’s faulty 9-9-9 plan in depth in a previous article, so I urge readers wanting to know more, to go read it. That said, I will address the comments that Cain has made in this video.
"the sales tax in the state of Florida or any other state - I'm that’s not addressing that, that’s going to be there whether we have the old system or the new system so, let’s not muddy the waters with that, that’s a totally different situation" – Herman Cain
This was a play common of most politicians, tiptoeing around the question to save face, then quickly following it up with an irrelevant point. The concern that msNBC’s host Chuck Todd inquired about was that “sticker shock” would affect consumerism negatively which could hurt the economy further. In Cain’s response he stated that “the [state sales tax] is going to be there whether we have the old system or the new system.” Unfortunately, the presence of the state tax alone was NOT the concern, the idea of a national tax on TOP of the state tax was the concern. Cain knew this.
The truth about Cain’s 9-9-9 plan is that mathematically it will not work, it would kill the middle class. However, the shortcomings of Cain’s 9-9-9 plan should be expected once one takes into consideration his history of economic failures.
His Failure to Foresee the Housing Market Collapse
On August 17th 2005 Herman Cain not only gave the economy a clean bill of health but he followed it up by insulting those who were predicting catastrophe:
"coverage of the bush economy reads like a collection of democratic party press releases, calling a strong economy everything from struggling to volatile or dicey... that kind of ignorance make homeowners fear that their most expensive possession could turn worthless overnight. That won't happen."
Herman Cain’s predictions couldn’t have been more wrong. The housing bubble collapsed as all bubbles must and countless American‘s went into foreclosure. When Mr. Todd asked Cain what signals he missed in 2005 were Cain scapegoated his lack of economic foresight. He claimed that at the time he didn’t know just how much Freddie Mac and Fannie Mae distorted the housing market. I am sure many listeners hastily accepted this fantasy, although the twist should’ve been obvious.