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  • Morning Bell: The Borrowing Bailout Parade Must End

    Before President Bush took office, the federal government took in $2 trillion in revenue in 2000. As Bush leaves office, the federal government is expected to take in $2.4 trillion in 2009. In other words, after eight years under President Bush, the federal government is taking in $400 billion more a year in revenue. So why did Congressional Budget Office project a $1.4 trillion deficit for the 2009 budget? Massive spending increases. In 2000, the federal government spent just $1.8 trillion. Now the CBO estimates that the feds will spend almost double that, $3.5 trillion, in 2009. Oh, and by the way, these figures do not include the nearly $1 trillion in new deficit spending that President-elect Barack Obama wants to throw at our struggling economy.

    Yesterday House Democrats unveiled their first economic stimulus package bid. Current price tag: $825 billion. Everybody in Washington expects that total will go up quickly when the Senate adds its wish list sometime next week. But Democrats in the House are already making it clear that even this soon to be trillion dollar package is just a down payment. The Hill reports: “House Appropriations Chairman David Obey (D-WI) said the massive bill ‘may undershoot the mark’ and suggested Congress may have to spend more money to stimulate the economy.”

    None of these unprecedented figures even includes the $350 billion in bailout money spent by the Treasury since October, or the additional $350 billion the Senate gave Obama “virtually unfettered authority to spend” yesterday. Those are considered ‘investments’ and for the purposes of accounting fictions do not count as spending. But all that money comes from somewhere, and the Obama team views the two programs inexorably linked. The Washington Post reports: “Top Obama officials say both initiatives are critical to turning the economy around: The spending package seeks to stimulate spending by showering cash on consumers, local governments and businesses. The bailout program, meanwhile, attempts to forestall trouble in the financial system, where risky lending practices helped spark the recession in the first place.” But is their any real difference between the spending package and the bailout program? The Post also reported earlier this week that the Obama team was seeking to expand the bailout program to “municipalities, small businesses, homeowners and other consumers.” Sounds exactly like the stimulus package to us.

    So adding in the $160 billion stimulus package President Bush signed this spring, the federal government has already pumped $510 billion into the economy and now wants to add another, at minimum, $1.2 trillion. Is any of this working? Is there any science or history that suggests it will? No. As Heritage Senior Policy Analyst Bian Riedl points out:

    Policymakers are basing the “stimulus” bill on economic models that wrongly assume every $1 of government spending increases the economy by approximately $1.60. Is it really that simple? By that logic, debt-ridden, big-government countries like Italy, France and Germany should be wealthier than America. And why stop at $800 billion? Such logic suggests unlimited prosperity could be guaranteed by the government borrowing and spending $800 trillion. Should America be basing such costly decisions on these types of economic models?

    The economy sank because people over-borrowed for houses they couldn’t afford, and financial institutions over-borrowed for investments they badly misjudged. Washington’s solution is to borrow $800 billion that it cannot afford. How will adding $800 billion to the national debt solve a recession created by imprudent borrowing? There is an alternative. Long term tax cuts coupled with long term spending cuts. The borrowing bailout parade is what got us into this mess. It is time for a new direction.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    37 Responses to Morning Bell: The Borrowing Bailout Parade Must End

    1. Donna Barnette says:

      I emailed by senators in Georgia and ask them to stop this nonsense. VOTE for a 3 month tax holiday so the people can keep more of their hard earned money…NOT THE GOVERNMENT!!!

    2. Robert E. Wayman says:

      I simply cannot believe that this would be approved, but it was. I was watching the hearings yesterday and it seemed to me this package was not going anywhere except the "round file". Unbelieveable, simply unbelievable!

    3. E. Cox Forest Hill, says:

      Get and read a copy of Atlas Shrugged By Ayn Rand. We are headed down the wrong road. This will wake people up. If it is not to late already.

      And the Sheeple think Bush is leaving a bad legacy? Wait till Obamunism gets done. We will be the USSA! God Bless America. I am being laid off at the end of the month. Please forgive my rant.

    4. Nancy Howard Stoneha says:

      THis president will be missed . I will be praying very hard for the next 4 years. I am a proud member of the Heritage foundation and I plan on taking my voice to the streets. God Bless President and Mrs. Bush!!!!!

    5. J. Jolene Atkins says:

      A wholehearted thank you to President George W. Bush for taking "A Charge to Keep" seriously. Because of his integrity, America is a better place. Thanks to him for making the tough decisions, for respecting life and standing up for what is right. He should feel proud of a good job, well done.

      I look forward to George and Laura Bush returning to Dallas, Texas. I am very happy that the George W. Bush Library will one day open in Dallas, Texas.

      Sincerely,

      Jolene Atkins

    6. H L PUCKETT MEADOW says:

      IN MY PERSONAL OPTION THEY SHOULD NEVER HAVE BAILED OUT WALL STREET OR THE BIG CAR COMPANIES, BECAUSE IT IS NOT A LONG TERM SOLUTION.THEY SHOULD HAVE CUT BACK ON MANUFACTURING BIG GAS GUSSLERS A WHILE BACK, PEOPLE NEEDED TO LIVE WITHIN THEIR MEANS , THE DAYS OF PIE IN THE SKY ARE OVER. I HAVE TRIED TO LIVE WITHIN MY MEANS OVER THE YEARS BEING SELF EMPLOYED AS A WOOD WORKER IN RECENT YEARS. GODLINESS WITH CONTENTMENT IS GREAT GAIN,

    7. Paul A. Schwab, Cent says:

      1. We are actually allowing our representatives in Washington to spend their way to no where. Throwing money at things does not work. We need a tax break; for instance, for 3 to 5 months no federal or state taxes, social security, medicare should be paid. Let the people keep their money and they will spend it to stimulate the economy. It is a sure bet.

      2. We need term limits badly in Washington. If they were out after two terms things would be different. How do we force the issue here?

    8. Darrel Baird, Kent says:

      Unfortunatly this isn't even going to be communism . It's going to be NATIONAL

      SOCIALISM. All that is left to do is to start a campaign against a particular group . That , I believe, is going to be any public held company that won't agree to the national socialist agenda . You will notice that Washington has already turned the auto executives into whining, blubbering wimps.That is how National socialism works.The idea is Do what we tell you and you can remain a public held company plus the execs get to keep thir life style . The catylist for acceptance is run away inflation . ( How much money is the FED "loaning" our economy ?

      The one salvation tha we might have is this may be to much fo even Nancy . ( Remember, the financing BEGINS IN THE HOUSE OF REPRESENTATIVES.

      That is our only hope of slowing this thing down .

    9. daniel says:

      the obama administration must be fought to prevent a major disaster

    10. Burt Noyes, St. Augu says:

      E. Cox, God bless you and I hope you will either start your own business or find another job.

      Bush has indeed "chucked his free market principles" and left us with a $10 trillion deficit. We will soon face an unprecedented deflation of the dollar if the Feds prop up this giant ponzi scheme. The longer we defy free market laws, the more hard discipline we will have to endure.

      Visit americannewsblog.com for more free market, conservative take-no-prisoners opinion and fun.

    11. Sid Williams - Alaba says:

      All control has been lost. It is quite obvious that those in Washington do not serve "the people". They have been on a maniacal orgy of self promotion, power, greed and lust for a very long time. The sad thing is the transparency of it all. None of them are held accountable, even for blatant disregard for the law. They are laughing at our gullability. When are the American people going to say "enough is enough"? I fear that it may be too late. God help us all.

    12. Wolfgang Spendel Cin says:

      Our problems are much bigger than tax cuts and smaller government can solve. Fiscal responsibility is very important. However, spending more or less money alone will not get us out of the problems we are in. Energy, free versus fair trade, corruption in business and government, infrastructure, and a responsible climate where business can flourish responsibly and not be undercut by irresponsible enterprises are needed to truly solve the problems we are having. If we don't deal with the broader issues other than to tax or not the final outcome will be to print money, which will cause greater problems than we are currently having.

    13. JeffT, Washingtonvil says:

      The fall of Citi is nice to see. This outfit, run into the ground by ex-Clintonista, Robert Rubin, is the one that used the tag line, "I want it all, I want it now," in their insipid TV commercials. That is the philosophy that got us into the mess in which we're trapped. The throwing of another 1 trillion $$$ into the mix will do nothing to alleviate the problem. But it will allow the federal Leviathan to gain more control over the alleged Private Sector.

    14. Kent, Virginia says:

      During the Reagan Presidency the Congress, controlled by Democrats, practiced deficit spending. It was a time of prosperity because of fewer government controls on the private sector and the tax breaks President Reagan managed to push through Congress. Still, the Democrats spent and spent, the big sign in New York City kept tallying the deficit and all the Democrats pointed to The President and shouted that he was to blame for the rising National Debt.

      Now the Liberal Fascists control our Federal Courts, the House of Representatives, the Senate, and the Presidency. They can no longer blame their disastrous economic policies on a Republican (although I expect we'll still have at least two more years of the "Borking of George W.")

      This National Financial Disaster began with the Clinton administration (according to the New York Times). History teaches us a government never has spent it's way to economic prosperity–quite the opposite.

      I hope and pray that after four years of Marx-lite Americans will be fed up and ready to return to the principles and ideals of their forefathers. We must demand term limitations for all elected representatives so career politicians and their cronies can no longer lead our country into financial ruin while they make millions.

    15. Kent, Virginia says:

      During the Reagan Presidency the Congress, controlled by Democrats, practiced deficit spending. It was a time of prosperity because of fewer government controls on the private sector and the tax breaks President Reagan managed to push through Congress. Still, the Democrats spent and spent, the big sign in New York City kept tallying the deficit and all the Democrats pointed to The President and shouted that he was to blame for the rising National Debt.

      Now the Liberal Fascists control our Federal Courts, the House of Representatives, the Senate, and the Presidency. They can no longer blame their disastrous economic policies on a Republican (although I expect we'll still have at least two more years of the "Borking of George W.")

      This National Financial Disaster began with the Clinton administration (according to the New York Times). History teaches us a government never has spent it's way to economic prosperity–quite the opposite.

      I hope and pray that after four years of Marx-lite Americans will be fed up and ready to return to the principles and ideals of their forefathers. We must demand term limitations for all elected representatives so career politicians and their cronies can no longer lead our country into financial ruin while they make millions.

    16. Jim Medley, Seattle says:

      To much spending and borrowing got us into this mess. Now our leaders are telling us that more of what should have been good for us but was not is the solution. If it is not authorized in the Constitution it is not authorized. If we have government engaged in unauthorized activity then we have unauthorized government.

    17. Richard Ahern says:

      WE ARE LIVING ON BORROWED TIME AND BORROWED MONEY.

      GOVERNMENT IS ADDICTED TO DEBT

      http://WWW.WASTEWATCHERSINC.ORG
      WASTE-FRAUD-MISMANAGEMENT

    18. Mike, Hickory, North says:

      (Quote): "It's time for a new direction".

      Yeah, but do you at Heritage, or any of us with our heads on straight, who haven’t been dumbed-down by the Left and their willing accomplices in academia and the media, really believe we're in for any such "new direction"?

      If the answer is "Yes", then somebody might want to check what's being (to quote Bill Clinton) "inhaled".

      The fact is, unfortunately, "The (Socialist/government elitist money, power, and vote-buying) Genie is out of the bottle", as certifiably insane as it is, and, as the old saying goes, "once that genie is out of the bottle, it's almost impossible to get it back in".

      Indeed, as is being proven on an almost daily basis by taxpayer money spendthrifts and freeloaders, as in a Socialist/Government elitist Congress, a soon to be Comrade President Obama, and those stampeding all over themselves, and us, with their hands out for more "government (taxpayer)" money, all we're in for now is a headlong dive down into Socialism and what it costs us, including not only more of our money but also rights, freedoms, businesses, and jobs.

    19. Alice Wigley says:

      I believe it is time for a new party, The Conservative Party. The "Republican" party of today is a farce. I am amazed as I see all our Congressional Rep. laying down before the new "god". How about showing some courage and stand up for our principles, instead of cowering for a false sense of public support. Political correctness is the downfall of our nation. These idiots in Washington are clueless as to the real desires of all middle America.

    20. Anti-obama says:

      I agree with the poster who mentioned Obamunism. That's why I wear my Obamunism t-shirt every chance I get.

    21. Pingback: Is TRILLION the new BILLION? Deficit spending must stop! - Practically Speaking

    22. Lenita,Plymouth Meet says:

      How interesting is to read the Morning Bell of the Heritage Foundation. I am new in the site and have to admit that I'm becoming an addict of it. It is incredible how politicians do what the should not do in our name. They ought to be fired as those who do no bring results to the table. Likewise, voters got to do their homework when electing their representatives. This is an eye opening for the next election in 2010. However, more amazing is not hearing these things on the news.

    23. Pingback: Obama Stimulus Consigns US to ‘Banana Republic’ Territory - BrianFaughnan’s blog - RedState

    24. Pingback: ChooseTheHero.com » Blog Archive » Obama Stimulus Consigns US to ‘Banana Republic’ Territory

    25. Pingback: ChooseTheHero.com » Blog Archive » Obama Stimulus Consigns US to ‘Banana Republic’ Territory

    26. Bandit84 says:

      Darrel Baird

      "The one salvation tha we might have is this may be to much fo even Nancy . (Remember, the financing BEGINS IN THE HOUSE OF REPRESENTATIVES.

      That is our only hope of slowing this thing down."

      With the current dem/rep numbers in the House, I don't know how the Republicans can stop this. UNLESS many, many dems join with the Republicans.

      I would like to know how many of you actually voted for the dems in Congress this last election (if you dare to admit it).

    27. Ray Ahern Windsor says:

      I really enjoy when the head liberal uses words like, save three million job instead of create three million new jobs. The end is not down the road but knocking on the door. The wolves are here! What men are to come, "will decide America's future", and that is now, and that is the next four years. May God answer my prays.SOON!

    28. lfmorgan, Newhall CA says:

      Its Circle the Wagons Time for conservatives—we must find a way to cause Obama to fail outright in his socialist policies, else our constitutional republic is essentially dead!

    29. ella quinn kinsto says:

      My family will miss george bush and laura bush.He is a great president.America people will not be better off without him.Our country will suffer greatly now with this new leadership.We all need to pray more for our country and each other.

    30. Steven, St. Paul, MN says:

      This is a total nightmare. I can't believe what has happened in three short months.

      We, as Conservatives are just getting rolled.

      I have spent the better part of my life managing investments by monitoring the economy and individual companies. I am not ashamed to say that for the first time I am truly frightened for my country.

      This years proposed spending will increase by 25% the amount of U.S treasuries. The market will never absorb that without a major bond market crash, sending interest rate's soaring. Higher rates will in turn slow down any stabilization this stimulus is suppose to provide the housing market.

      I could go on for pages but just take for example this recent $5 billion dollar loan to GMAC. They immediately used those funds to re-implement zero percent financing. They were loaned that money at 8%. You can't borrow money at 8% and loan it out at zero and expect to make a profit at the same time your loosing money on each vehicle sold.

      This is just a small example of how totally messed up the TARP program is being executed.

      I have yet to see what I call a game changer. We are rewarding the most failed at the expense of the barely hanging on.

      I am burdened by the fact that I know of the coming disaster and only wish I could awake from this nightmare.

    31. Jack Kyle, Lubbock,T says:

      Bush’s Strategy to Fight Terrorism—Brilliant

      When faced with a faceless enemy that is scattered in many countries on several continents, the question becomes how to fight them all at once. It would be impossible to go into all the countries where these terrorists were hiding and plotting their attacks on the United States and our allies. The answer was to go to the one country where they operated openly and then bring them to us in a place of our choosing.

      Afghanistan was the first choice for obvious reasons. The Taliban operated openly and with the blessing of what passed for a government. The loss of Afghanistan as a training and staging area forced the terrorist leaders to look for some other place to gather and coordinate their effort.

      Iraq became the focal point for both the United States and the terrorists to wage the “war on terror” for different reasons.

      Iraq presented itself as the place of our choice to fight terrorism because of its deranged leader, Saddam Hussein. Because of his self-deluded belief that he was divinely appointed and protected, he chose not to back down and allow a complete inspection of Iraq. The entire world believed that he had weapons of mass destruction and that he would not hesitate to use them or distribute them to others to be used against the United States.

      With the loss of Afghanistan, the invasion of Iraq and defeat of Saddam Hussein, the terrorists all over the world began to concentrate their resources and efforts in one place (Iraq) to secure a new staging area. The terrorists believed that the United States would not have the will to maintain a prolonged military operation in Iraq, BUT they did not count on George Bush. George Bush knew that if we pulled out of Iraq, the entire Middle East would be lost – a loss the free world could not afford.

      I believe that the United States has been kept safe from further attacks for the past seven years because the terrorists turned their time and resources toward trying to obtain Iraq as a staging area for more attacks on the United States and the rest of the free world.

      The terrorists failed and millions of Iraqis are free because of the determined belief of George Bush that peoples everywhere want to live in freedom and that in order to stay free we must take the fight to the enemy in their backyard.

      The terrorists picked the fight but George Bush picked the place.

    32. Chris Berg, Albuquer says:

      Hyper-inflation coming, boys and girls. I've got my solar panels, wood stove, greenhouese, cabin-in-the-mountains, what are you going to do when there's no food in the grocery store? Join mensunion.org, only a strike against government can force reform. America has a hundred million people on the dole, electing these crooks, sucking $6 trillion out of the economy, making slaves out of working people. Now, the crooks are just robbing the treasury—$825 billion more? What, the girls at the Emperor's Club are jacking up their prices that much? And you're just sitting on your butt letting the crooks get away it? Astounding. Join mensunion.org, at least. Best regards, Chris Berg

    33. Dennis A. Social Cir says:

      It does not take a rocket scientist to see that we can not spend our way out of this mess. I wish I could handle my budget like Congress wants to handle the government, spend, spend, and spend more. People should have woke up and smelled the roses, what they smell now and in the future will not be "roses". I do not believe that Bush is the cause of this either, the dems were in charge of the congress for two years, yet they only blamed the republicans for all the trouble that we have.

    34. Pingback: Flopping Aces » Blog Archive » The Mother of All Pork Bills

    35. Pingback: The Baltimore Reporter

    36. larry leatherwood l says:

      of course the wire tap is now LEGAL >>> LOOK>> WHO IS IN CONTROL….. i'm sure there is nothing to worry about. tks …(lnl)…

    37. Daniel says:

      If we are going to spend taxpayer money, let's invest in our future.

      -Nuclear Power Plants

      -Nuclear Weapons Arsenal

      -Aircraft Carriers, Naval ships and submarines

      -Missile Defense

      -Lunar Base

      -Solar Power from Space

      -US Foreign Intelligence

      -Antiproliferation

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