The $700 Billion Mistake

I knew something was wrong with the Congressional bailout when I was listening to an NPR interview with Newt Gingrich and actually agreeing with him!

The bailout is opposed by Republicans and Democrats alike. McCain opposes it. Obama opposes it. So why is Congress being urged to act soon on the bailout? Let's take a look at the details and why this is such a huge mistake.

Once again, the BBC has great analysis on where the doubts in the bailout plan are concentrated. To summarize, this is a bad idea because:

1. There is currently no provision for oversight of how the money will be distributed.
2. There is currently no provision for a wider bailout that helps homeowners at risk of losing their homes.
3. There is currently no guarantee that the pay for bosses of the firms being bailed out will be limited.

Here is the White House position on the bailout: "In a statement, Mr. Bush said that failure to act would have 'broad consequences'. White House officials have emphasised that they expect 'strong, transparent oversight' of the rescue plan" (from http://news.bbc.co.uk/2/hi/business/7629823.stm, emphasis added). We have heard this plea before, when Congress was asked to push through the Patriot Act and then fund a war in Iraq that had absolutely no connection to the September 11 attacks.

I had a discussion with my father (a Republican) about taxes, and he seemed to be under the impression that Obama was more likely to raise taxes than McCain. After seeing this type of behavior from a Republican administration, we need to understand that neither McCain nor Obama have the option to repair the national economy without raising taxes.

We're in a big mess right now, and it's going to cost money to get us out of it. Neither candidate has a choice: taxes will go up in the next administration. The difference between Obama and McCain is that Obama supports tax breaks for the middle class (80% of the population) v. McCain's tax breaks for the wealthiest of Americans (less than 1% of the population).

We've already made what could amount to a $3 trillion mistake called the War in Iraq. We don't need to cause additional inflation, devalue the U.S. Dollar, and get this far into debt just to bail out some fat cats who had a bad day at the track. You wouldn't run your personal finances with this much deficit spending, so why would you choose to spend your hard-earned tax dollars this way?

Write to your Congressperson today! Here's how:

1. Find your member of Congress.
2. Write them an e-mail urging them to vote against the bailout.
   Your letter doesn't have to be long. Just tell your Representative or Senator:

To: US Congress

I oppose the bailout. “Nationalizing Every Bad Mortgage in America Is Not the Answer”

Sincerely,

Your Name