Dear Clinton Administration and McCain, Deregulate Me

In a recent interview on 60 Minutes (http://www.cbsnews.com/stories/2008/09/21/60minutes/main4463340.shtml), Scott Pelley asked McCain if he regretted that he was one of the senators that helped pass deregulation in 1999. McCain replied, "No, I think the deregulation was probably helpful to the growth of our economy." I was not only surprised by his answer but also surprised by his short response.

In 1999, the Clinton administration, along with key architects like McCain, repealed or deregulated part of the Glass-Steagall Act by enacting the Gramm-Leach-Bliley Act. The Glass-Steagall Act, which was part of the Banking Act of 1933, was designed to prevent banking activities that lead to the Great Depression. This Act was designed to "(1) maintain the integrity of the banking system; (2) prevent self-dealing on other financial abuses; and (3) limit stock market speculation" (http://digital.library.unt.edu/govdocs/crs/permalink/meta-crs-9065:1).
Yes, deregulation or minimal oversight is good for the economy but historically only pays dividends in the short term. The long-term impact has historically been disastrous. The Great Depression is an example of what can happen without regulation. We forget so soon that history repeats itself. Only 50 years later, those protections were effectively deregulated.

Other examples of deregulation that lead to disastrous outcomes include the energy industry (Enron), the savings and loan industry (The Keating Five) and financial industry (Leahman, Fannie, Freddie and Bear Stearns). All of these are powerful examples of deregulation gone horribly wrong.

I don't only believe that McCain is out of touch, I also believe that he does not have the best interests of the United States in mind. At this point, I can only speculate why he, to this day, after seeing what "his" deregulation has resulted in, still, not only supports deregulation but also believes that his decision in 1999 was prudent.

I'd like to end with an article that discusses McCain's plans to deregulate the health insurance industry (http://www.politicalaffairs.net/article/articleview/7442/).