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What if John McCain Had Won?

If you are interested in alternative history, as I am, you will be fascinated by a Barrons interview with Douglas Holtz-Eakin, John McCain’s economic guru, and current president of an economic consulting firm.  The new Republican president would have offered a smaller stimulus package, relied more on tax cuts, and let the big banks and car markers go under. Health care and education reform would have gone forward in a much diluted form. The gas tax may have been axed. What Holtz-Eakin doesn’t say is that these policies would have produced a deeper, longer global recession, taken the Dow down to 4,000, the dollar up to parity with the euro, and 30 year Treasury yields down to 2%. I think it is also safe to assume that McCain’s first choice for a Supreme Court appointment would not have been Sonya Sotomayor.