• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • TARP: Will This Crony Capitalist Slush Fund Ever Die?

    It’s been used to buy one car company, give another to union allies, punish non-union workers, undermine the bankruptcy code, enrich Wall Street at the expense of Main Street, keep unionized Zombie firms from dying, and generally terrorize the world economy. Now the left in Congress wants to use it again, this time as a slush fund for a third round of stimulus funding. The AP reports:

    Democrats are looking to tap as much as $70 billion in unused funds from the Wall Street bailout to pay for new spending on roads and bridges and to save the jobs of firefighters, teachers and other public employees, officials said Thursday.

    After talks with the administration officials such as Treasury Secretary Timothy Geithner, Democratic lawmakers are eyeing what remains from last year’s $700 billion financial rescue package as a way to finance job-related legislation. Two House Democratic aides said the figure could be as high as $70 billion.

    The economic crisis that led to the adoption of TARP is over. Rather than serves as a necessary tool to avoid an systemic collapse of the financial system, TARP has become at best just another source of stimulus spending, and at worst a slush fund providing ready cash, with little or no accountability, to whatever industry or firm the Treasury Department chooses to support. The continued existence of TARP does nothing but enable the completely undemocratic and unaccountable Obama Czar State.

    It is far past time to end TARP.

    Posted in Economics [slideshow_deploy]

    13 Responses to TARP: Will This Crony Capitalist Slush Fund Ever Die?

    1. Freedom of Speech, T says:

      This is outrageous! The American people deserve, indeed, demand, an accounting of every single penny!

      The potential special favors and fraud is not hard to imagine.

      Bush never intended for the money to be used in this way. Trying to save Capitalism, he sure gave the left wingers an opportunity they could have only dreamed of.

      Now that "precedent" has been set, when will it end? It is not "criminal" to be "political" although millions often have a difficult time separating the two.

      Lobbyists are the biggest danger to this Republic.

    2. Todd, Iraq says:

      Well TARP of course has turned into a political tool for Obama and his slew of cronies in the "Dumbocrat" congress. He thinks by shifting untold (B)illions to everyday folks he can carry favor meaning votes when the time is right or perhaps he just wants people to like him. Not likely he needs to be loved by all and attacks anyone who says otherwise from Joe the Plumber to Fox news etc.

      He thinks he can TARP us all and we want be able to see what's truly taking place but in this he's sadly mistaken. I just hope there's enough fine Americans out there that still care and are willing to stand up and NOT give him the votes he's BANKING on with our money mind you.

      It's funny he takes your money with his right hand and gives it back to you in some other form with his left, (haha) remember folks he's left handed. I can think of many better ways to spend $700billion, (1)pay down the debt or (2)cut every American a check and allow us to make our own decisions etc, etc, etc. The list is endless but bottom line this vote buying nonsense has got to stop.

    3. Larry Hoffmann San says:

      TARP has created precious few jobs. Instead, it is being used to ensure politicians jobs come next election. Bottom line, why throw good money after bad? All this money is not free; it comes from the taxpayers who find themselves paying for someone else's benefit. Sounds a lot like taking another person's private property and that person receiving no benefit (might we call this robbery?).

    4. Jerry from Chicago says:

      Any and all unused TARP and/or Stimulus money that has not been spent should be used to pay off our national debt.

      Leaving any of those unused funds lay around for any length of time is like leaving the dinner meat loaf at the edge of the dinner table, where the dog can reach it. The second you're not looking, the dog will gobble it up. He can't help it, it's just a dog's nature. The same is true of Congress; it's their nature.

    5. Louis L Cesar F LEVY says:

      Tarp, Stimulus, Cophenhagen, all pursue the same thing. Spend to destroy! mandates the Woman.It's not good in her eyes to change what works.

      Patriots be Ready for what it takes to Turn all this Mess Around and have the Country back. It's gone for long,gone so long…

    6. Bobbie Jay says:

      Darn right, Louis! It just occurred to me what "tarp" is coded for…TRAP! What relevance does the term "tarp" have in GOVERNMENT!?

    7. Tom, St Louis says:

      Use it to pay off the national debt? We'd be lucky to put a small dent in just the interest payments on that, and now I'm reading they plan to increase the debt limit again. It's going to take a generation and huge tax increases just to pay off the current budget deficit!

    8. Punkindrublic, Orang says:

      H.L. Menken wrote: "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats."

      Now, WHY in the world would that fave just pop into my head today? Could it possibly be anything to do with an Executive that just keeps popping open the seven seals of the apocolypse like Chinese cookies? I believe we're up to seal #3 today…

    9. Joe in SC says:

      Talk is cheap. Actions are costly. Has anyone added up the Bribes in these so called "stimulus packages"? I am referring to all the earmarks ( embezzling of public funds) that are intended to buy votes? How much more effective and less costly would the stimulus be without the bribes? We need the power of recall petitions and term limits!

    10. Mark in WV says:

      I'm not an economist, but, uh, we're in debt, so, uh, thus, why is Washington debating about money we don't have?

      Cancel the damn thing!

    11. Tim Az says:

      The slush fund will die after one of the two scenarios happen. Under the first scenario the dollar is rendered worthless and then abandoned along with our freedoms. Under the second scenario congress is made relevant once again over the next two elections and is able to control the purse strings to the satisfaction of their constituents. I don't see any other way.

    12. Pingback: Wanted Community Organizers No Experience Needed « Socialism is not the Answer

    13. Pingback: Morning Bell: The President’s Permanent Political Slush Fund | The Foundry: Conservative Policy News.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×