CHEYENNE - The Republican candidates for Wyoming's lone U.S. House have vastly different views on how to solve the nation's economic troubles - and who is to blame for the slowdown.

"We didn't stick with sound business practices, and all of a sudden it all came tumbling down around our ears," said candidate Bill Winney, who blames the mortgage meltdown and higher fuel prices for much of the economic trouble.

Former state Treasurer Cynthia Lummis said out-of-control spending, the mortgage crisis, national debt and the balance of trade all played a role in the downturn.

But the biggest factor, she said, was the decision long ago to purchase the nation's fuel abroad, while foregoing opportunities to develop natural resources at home.

Mark Gordon, a rancher and businessman from Buffalo, said the economic exuberance of the last decade pushed the nation off course economically.

He said the question now is whether taxpayers should be required to "backstop" the poor judgment of some consumers and lenders. He said they should not.

Michael Holland, a physician from Green River, said the root of today's economic challenges can be pinned on bad lending and investment practices, which he said are largely controlled by a group of private bankers who have their own interests in mind.

Congress is also to blame for delegating the power to regulate money to groups like the Federal Reserve. The nation needs to return to fundamentals of good finance, Holland said, and Congress needs to take back the power to regulate the financial system. The Fed should be eliminated, he said.

"It's time to chase the money changers out of the temple," Holland said.

Holland, Winney, Lummis and Gordon are competing for the seat held by Rep. Barbara Cubin, R-Wyo., who is not seeking re-election. The winner of the Aug. 19 primary will face Democrat Gary Trauner of Wilson in the November general election.

Regardless of what caused the slowdown in the U.S. economy, Lummis said Congress is not taking the right steps to get the nation back on track.

The tax refund stimulus checks were an ill-advised attempt to give the economy a "shot of caffeine" when more fundamental changes were required.

Congress can improve the economy by reigning in spending, opening up domestic drilling to produce more federal mineral royalties and reducing spending by considering the closure of foreign military installations, Lummis said.

In the longer term, Congress needs to reform itself and the way it does business.

"The thirst for power in Washington prevents good people from doing the right thing, and the consequences for America have been huge," said Lummis, a rancher and lawyer who lives in Cheyenne.

Winney said that instead of one-time stimulus checks, the government should have considered a small permanent tax break, which would have provided an ongoing boost to the economy.

Winney said he has faith that private industry can develop solutions for the economy, while the role of government is to ensure sound business practices, and stay out of the way of innovation. Targeted tax breaks for American companies can help them get ahead in world markets, he added.

"If they're competitive, then we're selling U.S. products, and if we're selling more U.S. products, that's good for the economy, that's good for federal revenues, that's good for employment," said Winney, a former Navy officer who lives in Sublette County.

Gordon said the Bush tax cuts must be extended. If they expire in 2010 as scheduled, it could mean a major hit to the economy just when things might be getting back on track.

"What a terrific way to bring recovery to a dead stop," he said.

Holland said the recent attempts to stimulate the government with tax refunds are "window dressing" that mostly helped big bankers and money lenders.

The best way to stimulate the economy, he said, is for the federal government to stop regulating businesses to the point that they take their companies overseas.

All the candidates said the build-up of personal and national debt, coupled with the lack of savings, is hurting the country.

Gordon said it won't be easy to retire the national debt, but the country has an obligation to try.

He said Congress needs to address entitlements, waste and fraud, and has some difficult choices to make about what it can subsidize, and what it cannot.

Gordon said Congress needs to resist the temptation to raise taxes to balance the budget, and it needs to reduce the size of the federal government.

"That's positive because it brings government back to where it's closest to the people," he said.

Lummis said the federal government can promote savings by setting a good example. She proposed a savings account that uses federal mineral royalties to defray the cost of Department of Interior functions like protecting certain animal species.

"It sends a signal that America is going to start saving money, and hopefully sets a tone for American people," Lummis said.

Winney said Congress needs to not only balance the federal budget, but create a surplus to start paying down the national debt.

He would like to see Congress do that not by raising taxes, which "tamps down" economic activity, but by strengthening the national economy and cutting waste in the federal budgeting process.

Winney said the government can help enhance personal savings by making available mortgages, which are a big part of people's savings.

Holland said the nation's current financial system was designed to fail, and too many people are profiting from the nation's inability to pay its own debt.

He called it a "legal counterfeit scheme" that is turning the nation into a "banana republic."

The candidates also said they'd like to see some mortgage lending reform.

Gordon said Congress needs to take a look at the Truth in Lending Act, and mortgage-lending practices need to be made more friendly, simpler and more uniform so consumers know what they are getting.

Lummis also said tougher regulations are needed for mortgage lenders.

Holland said he would like to see Congress eliminate the Fed and require banks to have reserves for 100 percent of the money they lend.

Winney said more regulations are needed for mortgage, but Congress has to be careful not to stop innovation.

"How do you innovate without reaching? You've got to reach, but there are sometimes when you reach too far, and the government has to say that's too far," Winney said.

Reach reporter Jared Miller at (307) 632-1244 or at jared.miller@trib.com.