What do you do when you’re a likable democratic President, faced with declining approval ratings due to a slow economic recovery, and a groundswell of concern over a ballooning budget deficit?
Answer – Spend more tax dollars!!!!
Just as the core financial institutions start to pay back the bailout money – with interest, President Obama floats the idea of re-purposing those funds to create jobs.
Call it brilliant, call it necessary, or call it fraud?
Two major pieces of legislation have been passed to stabilize and jump-start our economy. TARP and the American Re-Investment and Recovery Act.
TARP was geared toward putting a floor under the collapsing financial industry. We all begrudgingly signed up for this, knowing in the back of our heads that we were headed for an It’s a Wonderful Life “run on the bank” moment.
The Recovery Act, a.k.a stimulus bill, was purportedly geared toward saving or creating jobs. We have spent very little of this money so far and there are tens of billions of dollars in this fund left to be requested and allocated. Much of the money to date has been used to fund short falls in state and local budgets.
But instead of tapping the large amounts of remaining funds that were allocated for stimulus in the Recovery Act, the administration, addicted to spending our tax dollars, wants to allocate TARP dollars for stimulus.
This would be kind of like taking $400M from the education budget a saying we need a bunch of spiffy new tanks! Or taking money from the Social Security trust fund and using it for a new space shuttle program!
I think that Americans are a little too “dis-connected” from our tax dollars. Do we realize it’s our money? That we earned with our own hard work?
Do we realize that when the government tells us they want our support to spend it on one thing, then decides to spend it on something else, that it would be called fraud in the private sector?
Mr. Obama, when all the funds in the stimulus package are tapped, and the economy is still not growing, then come ask us if you can spend more of our money. Then let us debate it. But don’t play the “bait and switch” telling us that we need to tap the TARP money to jump start the private sector when there is already another spending bill with funds allocated to do that.
How about we let the financial institutions pay their TARP debt back to the government, then let the government pay their debt.
What do you think?
Guest Blogger – Jeff Hine