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Economics 101: Stock Market Slide is McCain’s Chance to Defend Corporate America

October 13, 2008 on 12:25 pm | In How conservative is America, Obama vs. McCain | 2 Comments

Here’s the speech McCain should give about the economy and the stock market that you will never hear:

“My friends, Senator Obama and the other Democrats think that they can gain political traction with class warfare rhetoric that has worked for them all too often in the past.  I am not going to stand by quietly and let them get away with pitting Americans against each other, artificially, unjustly, and repeatedly.

“Democrats love to demonize Wall Street, and pit it against “Main St.”  To them, Wall Street is a small group of filthy rich robber barons that manipulate corporations to enrich themselves and punish the rest of us, we who live on “Main St.”

“To Senator Obama and the Democrats, corporations are bad, excessive, make too much money and should be punished for it.  If this is true, my friends, why aren’t they celebrating the dramatic decline in the stock market of recent weeks?

“If corporations are bad and should be punished, what is more punishing to them than a 20, 30, or 40% decrease in their value? 

“Democrats don’t even seem to understand what the stock market is.  Or more likely, they do understand but cynically misrepresent it in their lust for political power.  You see, my friends, the stock market is where ownership of America’s publicly traded corporations is bought and sold, by means of shares, every single day.

“When our corporations are believed to be profitable, productive, and headed in the right direction, their value to buyers increases. When this happens, their share prices will rise on the open market.  When their share prices rise, the stock market indices, like the Dow Jones Industrial Average and NASDAQ, will rise. 

“My friends, who owns the corporations?  It’s not just the big shot executives. Do you know who owns the corporations?  You do!

” You see, my friends, when you have investments in the stock market, in the form of retirement funds, IRA’S, education accounts, pension plans, and the like, you have ownership shares in America’s corporations.  And when these corporations are profitable, your shares will increase in value. When your shares increase in value, the value of your retirement fund, pension plan, IRA, education account, nest egg, will also increase in value.

“This is why the decline in value of the stock market has been treated as bad news for most Americans.  Why then do Democrats demonize corporations?  Why do they want to punish them?  Senator Obama should be happy that the stock market has declined.

“I am not afraid to admit that I want to reduce taxes on corporations.  I am proud to admit that. When we reduces taxes on corporations, the corporations will be more valuable.  When corporations are more valuable, their owners will benefit.  Who are the owners?  YOU ARE!

“If you have as much as one mutual fund, you have shares in probably many many corporations.

“Senator Obama loves to demonize the oil companies.  Why?  Oil is the lifeblood of our economy.  Who is happy about high gasoline prices?  Not you. Not me.  What would putting extra taxes on the oil companies accomplish?  It would raise their cost of doing business and decrease their value.  All this would to is make the price of a gallon of gasoline even higher and make the value of oil company stocks lower.  And who loses when oil company stocks go lower?  The owners of the oil companies.  And who are the owners of the oil companies?  YOU ARE!

“Yes, I want America’s corporations to flourish, including oil companies.  When our corporations flourish, the owners benefit. Who are the owners?  Everyone that has even one mutual fund, or a retirement plan, pension fund, IRA, education fund, or a simple nest egg.  Who are the owners?  YOU ARE!”