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  • Even in Recess, Congress Can’t Help Spending Billions for Bailouts

    Not satisfied by the billions in federal bailouts already passed, House Speaker Nancy Pelosi recently announced that she intendeds to bring the House back from the August recess to pass yet another multi-billion-dollar federal bailout. This version—costing taxpayers $26.1 billion—is touted as aid “to save teachers’ jobs, help seniors and children.” Perhaps anticipating a backlash against additional billion-dollar bailouts (the national debt recently polled on par with terrorism as threats to the United States), congressional Democrats were quick to claim that this would all be “paid for.”

    Unfortunately, even a cursory look at the details reveals these claims for the gimmicks they are.

    First, the bill will almost certainly not be paid for. The largest “cut” in spending is an $11.9 billion reduction in spending for the food stamp program, but this is directly at odds with information from the Huffington Post: “Democrats told HuffPost they will work to prevent the food stamp cuts from ever taking effect.” In reality, this bailout, like the many others that preceded it, will likely add billions to the burgeoning national debt.

    Second, the $10 billion to “save teachers’ jobs” appears curiously similar to a bailout for the national teachers unions. As Heritage Foundation education policy analyst Lindsey Burke recently noted,

    School districts are rehiring teachers without a federal bailout, but the administration and certain members of Congress claim catastrophic layoffs will occur if Washington doesn’t do something. Teachers’ unions are huge contributors to campaigns, and likely have about $24 million in dues at stake in the debate.

    Third, while aid to needy seniors is almost always a political winner, the reality of Medicaid funding isn’t nearly as clear cut. State Medicaid programs already received an $87 billion bailout as part of the 2009 stimulus bill, and every state knew then that this funding would expire at the end of 2010. While some states chose the more difficult path of living within their means, others have not. Simply put, extending aid at this point has the effect of rewarding fiscally reckless state budget policies.

    This legislation should be called out for what it is: a massive federal bailout for influential teachers unions and irresponsible state governments. With recent polling revealing that only 28 percent of voters believe increased government spending is good for the economy and poll after poll after poll consistently confirming that the economy and jobs are the top priority for the electorate, it has become clear that Congress is simply ignoring the will of the American people. At some point, these massive federal bailouts must end.

    Posted in Ongoing Priorities [slideshow_deploy]

    6 Responses to Even in Recess, Congress Can’t Help Spending Billions for Bailouts

    1. Billie says:

      What's wrong with you, Nancy Pelosi? Were your parents dependent on government? Were you and the children you brought up? Are your adult children now, dependent on government and not their own mother? Why can't people live as free as you and the rest of the over-paid democratic party, forcing government dependency on the people?

      Obviously today's government has no concern to cost just a will to increase at any cost. Public education and administration is over staffed and overpaid. It has become very inefficient and useless as the GPA of students is based on government standards which does not give an honest assessment. Children have individual minds, let them reach their potential, get government OUT!

    2. Steve, Pennsylvania says:

      This still amazes me…We are well past the year mark of the first bailout (which hasn't done much of anything) and Congress is still trying to pass more and more bailouts and is piling more and more debt. My question to everyone in Congress and who supports such large bailouts is "When is it enough? Haven't you learned that spending isn't the answer. Spending got us into this mess and it sure won't get us out. We are digging ourselves into a bigger hole that our descendants will have to pay for. The system needs to be reformed…not re-payed with billion dollar bailouts!

    3. Bill. Kansas City. M says:

      We need term limits for Congress and campaign finance reform.

    4. Tim Az says:

      What about the money laundering going on here? How many millions will return from the unions to these politicians in the form of campaign contributions? What a great way to fund your campaign using other peoples money.

    5. Pingback: The Military Pays the Price for Obama’s Agenda | Impeach Obama Campaign

    6. geroge, Tempe says:

      Government spending actually kills JOBS! ! !

      Taxation necessarily reduces taxpayer net income. With fewer dollars, taxpayers cannot buy the goods and services they would have purchased, if the taxes had not been extracted.

      So, taxes reduce taxpayers' purchasing power; and, here is the key: those who would have produced what the taxpayers would have purchased, lose their jobs as businesses shed staffing to match the reduced demand. That reality creates a “vicious circle.”

      So Mr. President—–Stop taxing more than government needs to perform constitutionally authorized activities and stop the excessive spending. Remember–the federal government doesn't sell anything. Every cost of governmental activity is paid for by its taking money from those who earned the money by providing a product or service that others would voluntarily pay to have.

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