Romney/Ryan would be good for Wall Street, sure. But we shouldn't ignore how good a Romney/Ryan administration would be for Main Street too. Let's consider the anti-prosperity effects of one of the President's major legislative achievements, the Dodd-Frank banking bill.
Dodd-Frank was supposed to clean up Wall Street and prevent a recurrence of the Great Recession, in part by curtailing the "too big to fail" phenomena and completely overhauling the federal regulations that govern financial ins utions. It was billed by the President as enacting "the strongest consumer financial protections in history."
How'd that work out? Not that well, actually. It turns out, predictably, that the big banks are most capable of adapting to the new regulatory burdens of Dodd-Frank, while the smaller banks are getting squashed by compliance costs. The result is that the existing "too big to fail" banks are getting a lot bigger, and the smaller banks are struggling to survive.
For Middle America, this is a disaster. Smaller banks, the community banks, were the backbone of American prosperity for decades. They were where you went for mortgages, loans and basic checking. But not for long. In no small part because of Dodd-Frank, the days of free checking and no-fee debit cards are drawing to a close. Incoming Dodd-Frank lending rules are about to make mortgages and home loans more difficult to get from community banks, putting Main Street at the mercy of the big banks that got us into this mess.
So Obama's banking bill, for all its good intentions, has made things worse. That's one of the reasons why Gov. Romney and Rep. Ryan are proposing to repeal Dodd-Frank and replace it. By reducing the cost of regulation to banks (while, of course, keeping necessary protections in place), we can reduce the costs to Main Street for the things they need to get the economy back on track. That's the true purpose of government — not to punish banks, but to get out of the way of the American consumer.