During the primary campaign Senator John McCain once admitted to the Wall Street Journal editorial board that he "really doesn't understand economics." When I first read his remarks I assumed the Republican presidential candidate was just being modest.
Since then, and on several occasions, candidate McCain has stated that this country's "fundamentals" are sound. Of course, I thought he was speaking of the business fundamentals. Or maybe he was paraphrasing Republican President Herbert Hoover, who once said, "no one can rightly deny the fundamental correctness of our economic system."
When I hear the term "fundamentals" in the context of bank failures, increasing unemployment and rising prices, I think of financial measurements. A Forbes web site actually has a good definition: "The qualitative and quantitative information that contributes to the economic well-being and the subsequent financial valuation of a company, security or currency." For businesses, information such as revenue, earnings, assets, liabilities and growth are some of the fundamentals. Analysts and investors analyze these to estimate the value of an asset.
Of course, Senator McCain is a maverick. He often sees things differently than the Washington old-boy network. He is so independent that he eschews the Internet. He marches to his own drummer and, apparently, when it comes to language, he uses his own dictionary. Case in point, he says fundamentals means "the American workers." Therefore, when Senator McCain says the "fundamentals are sound," he means that the American workers are skilled, hard working and resourceful. Conversely, when Democrats say the fundamentals are not sound, they are unfairly and foolishly attacking American workers.
Senator McCain plays if from the gut and he has proven, from time to time, to have very good instincts. He was and will always be a boxer. He bobs and weaves from tough punches, and he throws sharp jabs at his opponent. Certainly the selection of Governor Sarah Palin as his running mate shook up the campaign and has brought him into a virtual tie with Obama/Biden.
But now is not the time to play word games. Wall Street's largely unregulated ride must end. The economy is in dire trouble. The ripple effects of today's financial crisis will be felt by all Americans for years to come. Now is the time for strong, clear and decisive economic leadership.
President Herbert Hoover also once said, "Blessed are the young for they shall inherit the national debt." I only hope that there will still be something besides national debt for my child to inherit.