• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Morning Bell: Summer of Bailouts

    White House press secretary Robert Gibbs did not give the White House daily press briefing yesterday. The stated excuse was a bad cough. But there was no mention of any flu-like symptoms when The Hill reported yesterday that Gibbs believes the “professional left” should be “drug tested” since they will only be satisfied “when we have Canadian health care and we’ve eliminated the Pentagon.” After an outpouring of leftist protests over the article, including a call from Rep. Keith Ellison (D-MN) that he resign, Gibbs walked back his criticism, releasing a statement explaining: “Day after day it gets frustrating. Yesterday I watched as someone called legislation to prevent teacher layoffs a bailout – but I know that’s not a view held by many.”

    Oh how wrong Gibbs is. “Bailout” is the only word that can accurately describe the $26.1 billion legislation that the House approved on a largely party line vote yesterday. Let’s break down the bill’s main provisions:

    The $16.1 Billion Medicaid Bailout – Congress has already bailed-out state Medicaid programs three times this decade, the most recent $87 billion installment coming as part of President Obama’s $862 billion failed economic stimulus bill. But the states with the most wasteful Medicaid programs have already blown through that money, and now they need another hit. Every state should have known that the stimulus funding would expire on December 31, 2010. But 30 states went ahead and built their budgets on the assumption that President Obama would hook them up for 2011 as well. This $16 billion Medicaid bailout is designed to aid to those states with the worst Medicaid spending problems. For instance, New York has nearly 30 percent of its citizens enrolled and spends in excess of $18,000 per person in poverty. Texas, in comparison, with 5 million more people and 1 million more individuals in poverty than New York, has a much smaller Medicaid program. In essence those 20 states that acted prudently and budgeted for the stimulus to expire are paying for the bailouts of the 30 states that can’t control their Medicaid spending problem.

    The $10 Billion Government Union Bailout – The President will tell you that without this $10 billion, your child’s teacher will be fired this fall. Don’t believe him. As Mike Antonucci of the Education Intelligence Agency has detailed, those schools that “fired” teachers this spring have already begun hiring them back. If teachers unions were really concerned about saving teachers’ jobs, they could easily agree to pay-freezes or to start paying for their own health care. But government unions are not in the business of giving up revenue sources. They exist to suck the private sector dry as much as politically possible. The unions claim that the $10 billion public-education bailout would save 100,000 teaching jobs. That means taxpayers will be paying $100,000 per job — nearly double the national average for teacher salary, $54,000. Moreover, the U.S. Census Bureau estimates that about 57 percent of teachers are unionized. Using a conservative estimate of $300 in annual dues paid, the NEA and AFT have a minimum of $24 million in dues at stake. It is that $24 million in union dues revenue, not your children’s education, that this bailout is really about.

    Fantasy Food Stamp Cuts – President Obama originally just asked for all these new bailouts to be tacked onto the deficit. But the Senate balked. So instead, Majority Leader Harry Reid (D-NV) got creative and identified $11.9 billion in unspent food stamp stimulus funds that could be re-appropriated. But don’t believe for a second that that money will not be spent anyway. Democrats immediately told The Huffington Post that they will work to prevent those food stamp cuts from ever taking effect.

    Real Job-Killing Tax Hikes – In addition to the food stamp and other smaller spending cuts, the bailouts are also paid for by a $10 billion tax hike on American companies that compete overseas. This tax is pure protectionism. The Obama administration seems to believe punishing firms that try to expand their businesses in foreign countries will increase employment here at home. They are dead wrong. For every worker employed by a U.S. subsidiary in a foreign country, 2.3 Americans are employed in the United States. This tax hike is the Smoot-Hawley of this recession.

    When the House recessed last week, taxpayers had the chance to believe that their long national bailout nightmare was over. No such luck. Just when you thought your tax dollars were safe, the Obama administration sucks them back in.

    Quick Hits:

    Posted in Education [slideshow_deploy]

    27 Responses to Morning Bell: Summer of Bailouts

    1. Gary Alaska/Nevada says:

      Obama's intent is clear, how do you irrepairably damage America, "fundamentally change " as fast as possible, before the people wake up.

    2. Ken Jarvis - Las Veg says:

      Today's HF MBell is one of the BEST Ever.

      It spells out, in some detail WHO THE HF HATES.

      Starting at the bottom – THEY HATE AMERICAN COMPANIES.

      Don't miss this BS = "For every worker employed by a U.S. subsidiary in a foreign country, 2.3 Americans are employed in the United States."

      NO WAY.


      Food Stamps cut – it doesn't go into effect till 2014,

      Pelosi said – she didn't like to have to use that $$$.

      and will work to get the $$$ from someplace else.


      HF hates UNIONS

      even tho – Union Workers make More $$$ and have better benefits.



      HF hates Medicaid -

      because Medicaid helps the NEEDY

      and HF HATE THE NEEDY.




    3. Mary.... WI says:

      There will be no end to the constant spending by BO and the democrat party until they're all voted out of office. And what a financial mess the GOP will have to clean up!

      Like me, I truly believe most Americans are tired of having part of their paychecks taken to pay for all these unions. There is absolutely NOTHING special about any union member ( I say this even though I have many relatives that are union members). No one else has seen an increase in their wages and benefits at work…..why can't te unions take cuts like the rest of us to help save money. We all continue to work as hard at our jobs before BO took office…..How different is their workload? Answer……no differrent. Just greedy, whiny, unions.

    4. Leah From NH says:

      I am a teacher that called the NEA yesterday to register my objection to this bill. Our high school could easily lose 1 teacher from every department without impacting the students at all, because our enrollment is down so low. When I asked the NEA to defend taking money out of the mouths of hungry children to fund a make work project for middle class teachers, they assured me that the democrats had already promised them that they would undo that long before it was scheduled to kick in. So with a wink and a nod, once again Congress borrows against our collective future prosperity in order to fund current subsidization of a favored political group. If we stayed within the bounds of the Constitution the federal government would not be able to cannibalize its own people.

    5. Criousnoble Great st says:

      Mr. President, ever since 2004 isn’t it true that your party the demo-rats, has had a firm majority. Is not also true that if your party the demo-rats Marxist socialist communist wieners club didn’t vote with the repubicans. You and your cronies would’ve been found out to be against Americans and their right to live free from harm. So you and your cronies couldn’t fight derail or vote down in any way, any thing bush wanted for the war efforts. Surly you’re intelligent enough to know you and all your Marxist socialist commy demo-rats would’ve lost all control. Isn’t it also true that over 90 percent of all the special interest add-on’s to all the bills since 2004 were entered by your demo-rats. Isn’t it true that your demo-rats has entered the motion in the house to farther all the bailouts. Bailouts written by your demo-rat cronies weighted down with multi billion dollar special interest add-ons. So Mr. President you see it’s now time to start acting like an adult and taking responsibility for your and your demo-rats bad spending habits. Bad spending habits that have almost push this county to the preverbal edge of the pit of despair. So let’s now change that filthy smelly trash filled diaper you have on so you can stop your self from crying bush did it. Let’s put a clean fresh diaper on so you can start taking control and responsibility for the bills you have written and tell the American people it’s my performance my policies that have gotten us here. So just grow the hell up.

    6. R. Rempel, Minnesota says:

      Where on earth do they think all this money is going to come from??? The amount that congress spends is just staggering and "we the people" have to bear the load

      I say make them an volunteer organization……as the congress was intended to be in the first place….NO pay, NO perks, NOTHING unless they work for US.

    7. Pasadena says:

      It's sad to see the state of affairs of our country. I see no hope. Republican elite are not any better. See what they did while they were in Congress.

      Save us and help us with your right hand, that those you love may be delivered.

      Psalm 108:6

    8. Norm Klevens says:

      The president and the democrat party will continue to spend as they are blaming the adverse results on President Bush. The Heritage article on that should be sent to the veritable Fox News whose hosts do not give a wit about truth. I do not expect them to defend any politician, but do expect them to correct "guests" like Allan Combs and Ed Randell and as a matter of fact Chris Wallace, host of a weekly broadcast. Viewers are supposed to forget, as far as the economy is concerned 9 1 1 and the Clinton recession. Despite both the environment created by those "evil" tax cuts, which by the way increased the tax on many of the so called wealthy and removed many of the poorest among us from the tax rolls and 14 million jobs were created by the private sector. The stock market climbed and many owners of 401K's made money, at least on paper, interest rates were around 5% as was unemployment. Doesn't that sound horrible – that was the Bush economy. These sa

    9. Leo J Noll says:

      Recently Obama stated he took care of Fraud, Waste and Abuse in Medicare/Medicaid and Social Security.

      Could you cover this area as I am not sure how this area is being address without additional employment or direction to private companies who oversee these programs.

      Experience reveals charges being made to wrong account; inflated charges; Drs not seeing the patient but charging for signing patient log book; poor food which leads to patient wasting the food; drugs being dispensed that were not authorized; dispense too many undergarments thus causing additional buy of product which increases waste.

      Proper policing of Nursing Homes are not be accomplished for lack of people.

      Nursing homes with less nurses and aids are charging more, doing less and have do not care about patients health or well being.

    10. Salverda says:

      Well, the Democrats want another stimulus. Why do Democrats always vote in favor of these expensive stimulus and bailout programs? It is because they know that much of this money will go to unions, and they also know that they will get a large percentage of it for themselves by way of campaign contributions from those very same unions. The Democrats are being bribed into voting the way that they do. This blatant corruption is thoroughly ensconced in our lawmaking process. It is as if the Democrats feel as though the unions don't have enough money to pay them big enough bribes to secure their reelections, so they must pass laws forcing the taxpayer to fund this bribery. Money is being taken from you an me, by way of taxation, in order to build up the coffers of these corrupt elected officials. Plain and simple. They falsely claim that teacher's unions need money to help the children, and that police and firefighter's unions need cash to fund their pensions. Don't believe these lies. Ask yourself, If the unions really need the money for children and pensions, then why do they spend so much on campaign contributions? Let them help children and pensions with the money that they already use to bribe politicians first, and maybe then they will have some credibility. They could not care less about children and pensions. They are only concerned about their own reelections!

    11. gary sheldon AZ says:

      Time has come to rid the nation of the Dept. of Education AND the Dept. of Energy. Perhaps the strangle-hold of the EPA could be eased as well. Time to give education back to the states. The only oversight committee needed would be to eliminate the REVISIONIST view of our nation's history as it is NATIONAL history and should be taught with accuracy especially maintaining the accurate view of many of the founders that PROVIDENCE ultimately rules over the affairs of men (and women).

    12. Drew Page, IL says:

      I've got a great idea. How about firing one non-military federal employee for each teacher the bailout money ends up rehiring. This is one sure way to avoid increasing the deficit or decreasing other essential services. Mr. Obama said every American needs to sacrifice and "get some skin in the game". I didn't hear him say anything about exempting federal employees from this sacrifice.

    13. gary sheldon AZ says:

      Thank you China for carrying our debt. I hope that "el presidente" Soetoro can print enough paper to repay your generosity before he gets booted from his lofty position of Communist Dictator in Chief of the soon to be restored Republic.

    14. toledofan says:

      The answer to all this nonsense is really pretty simple; reduce the size of government, eliminate all the waste, and spend only what you have unless there is an emergency. The reality is that as long as the Democrats are in power, no matter the city, the state or the federal government, there will be disaster after disaster. Look at Michigan and Ohio as a prime examples of democratic failed leadership. The Democrats have become the anti-American, anti-constitution, and anti-freedom party laced with a bunch of elites who don't pay taxes, spend other peoples money like there is no tomorrow and expect everyone else, except themselves, to suffer and carry the burden.

    15. Bernard Rosenberg says:

      Please bear in mind that the left will continue to do its thing as long as there is no organized defense.

      To have a tea party is cute, but there is no leadership. no organized leadership.

      Republicans have no respected and eloquent leader, no spokeperson, to defend its policies. That is why there are Republicans that side with the Democrats.They are of the same makeup but under different party name.

      They are prostituting themselves just as the Democrats.

      If you want to save America you need 1) Strong, Eloquent, Fearless leadership.

      2) You must be willing to put these politicians who raped America, defiled the Constitution and conducted themselves without shame in not doing their fiduciary reponsibilty, BEHIND BARS. Otherwise, another election, another candidate will do the same.

      My heart cries when I see that the American people have allowed these criminals to behave in such way , by attributing this behaviour to " normal politics"

    16. Micki-Tamarac, FL says:

      I talked to a teacher about the way the country was going downhill, and she agreed with me. I told her the only thing we could do is vote in November.

      she told me she had to vote democratic because she was in the union.

      So as long as people care about themselves more than the future I am afraid we are lost. I will be voting never the less in spite of the odds.

    17. Pingback: Morning Bell: Summer of Bailouts « South Capitol Street

    18. Fox Hunter, Californ says:

      Obama's ideolical beliefs are based on 1840's Marxism, the economic and social conditions of which have not existed for more than 100 years.

      Everything he is doing today has been tried, and failed, in the past, but his mind is made up, don't confuse him with facts. Those thing which have worked are counter to his ideology so they must not be used.

    19. rosemarie, fresno says:

      Pasadena : the dem, ruled the congress in the bush years , so dont blame others, it is you americans on foult , you are so gullable ,and greedywy give to every country , i was told that charity start at home first , and then you give,

      i`m seen america is bieng given away by the so called left, and a president that has no smarts , he may has an iqu, but he is still stuoid, and needs to get out , bevore america is all the way in the toilet

    20. Al in Fl says:

      Reminds me what Gov Christe of NJ said to the dem legislature upon taking office. He was handed over the balance of the year with almost no money to carry on. Why? Because the outgoing dem legislature balanced the budget by assuming that tax revenue and business tax would increase by 5 and 8% in a year when even a moron knew that couldn't happen. So, now the congress is doing the same fuzzy math either with nonesensical projections or by using money that would be avail until several years out. What happens when we get to that year? This is crazy.

    21. Ben C. Ann Arbor, MI says:

      I will be 65 in October. I plan to work for another ten years or so given I am one of three people in Michigan with the expertise to do what I do. I am an employer – I own my business and provide health benefits for my employees..

      I have NO choice. I must sign up for Medicare Part A. I must have Part B for my provider to provide me the Advantage program. So what it means to me is that I will still pay the 15% Employment Tax (which is social security and medicare), health care premiums for my family, additional Part B government premiums, and whatever the Advantage premiums are from the provider (Blue Care Network).

      Where is the incentive to continue working, other than the passion I have for my job? My health care costs will be GREATER after sixty five than before. No wonder we have generations of free loaders.

      The very nice lady in the Social Security office in Ann Arbor stated that Medicare Part A is free. I responded by saying I have paid for it through taxes since its inception. She corrected her statement saying "I should have said we don't charge a premium for it – only Part B."

      I can't wait until I hear the outrage from my fellow baby boomers when they discover what I learned today – the roar should be deafening.

    22. Ella Quinn, Kinston, says:

      Vote the democrats out.They controlled congress last 3 years of Bush adminstration.Obama is a disaster of a president.

    23. Bobbie says:

      Ken Jarvis, I made some personal corrections to your comment:

      Today’s HF MBell is one of the BEST Ever.

      It spells out, in some detail WHO THE HF HATES.

      Starting at the bottom – THEY HATE CORRUPTION! As do all law abiding citizens.

      Don’t miss this BS = “For every worker employed by a U.S. subsidiary in a foreign country, 2.3 Americans are employed in the United States.”



      Food Stamps cut- nothing but hypocrisy. Of course it will go somewhere unnecessary. It's part of a future crisis Revenue and food.

      Pelosi said – she didn’t like to have to use that $$$.

      and will thieve the freedom of the private sector to get the $$$.



      even the– government Union Workers make More unearned $$$ and have better unearned benefits.



      HF hates Medicaid distorted for the benefit of government because HF helps the needy as government exploits them for government gain of power.


      Ken Jarvis needs to look up the words hatred, ignorance, self-pity, freedom, liberty, inner strength. Ken, I sincerely believe if you believe obama and the government are so sincere in helping and if you are on Medicaid, you will be fine.

      I love you, Ken. Even though… God Bless!

    24. Pingback: Okuma Group: Debt Of Pigs Weighs On European Union | Revelation Exposed

    25. Drew Page, IL says:

      Of all the comments posted so far, I agree with Bernard Rosenburg's the most.

      We may have had Republican presidents after Reagan, but none who professed, lived and championed the ideals of conservativism as Reagan did. Neither G.H.W.Bush, nor his son, G.W. Bush were leaders or champions of the principals of conservatism. If Republicans hope to truly lead this country out of the current chaos, they need an intelligent, courageous, experienced candidate who governs and leads Congress by practicing the ideals of conservatism. Our problem isn't the need for bigger government; our problem is big government.

      We need a President who understands the importance of full employment, believes in capitalism, free enterprise, job creation and living within a budget. We need a President who will pledge to reduce government bureaucracies and workforces by 15% to 20% and then actually does it. We need a president who is not afraid to defend American exceptionalism around the world, one who is not afraid to enforce the laws of the land and one who is not afraid of being politically incorrect.

      We need that Republican president to an individual who understands the need for social saftety nets, for Social Security, Medicare and Medicaid, for unemployment compensation food stamps, rent subsidies and welfare, but whose understanding of these needs is balanced with the understanding that abuse within these safety nets will lead to their failure. And while we need a president who understands free enterprise, supports capitalism and the necessity of job creation, we need that president to exercise caution and place and maintain regulatory agencies to root out and end abuses of business practices harmful to the American economy and the citizens of this country. We need a president who will support legal immigration and naturalization of citizens, who will balance this by enforcing immigration laws, deporting illegals, fining employers of illegals, empowering individual states to enforce immigration laws in concert with federal agencies.

      We need a president who will lead his party in legislative reform, demanding that Republican Senators and Congressmen refuse to include earmarks and pork barrel project in legislation being considered and voted on in either House. We need a president who will use the influence of the Executive branch against any Senate or House majority leader who attempts to have legislation passed by bribing members of either House to vote for or against a bill.

      Yes, it is true that such a president would be pilloried by the liberal left, the "progressives" and their liberal media lapdogs, but the right president would realize that such comes with the territory and not let that prevent him, or her, from putting those conservative principals into practice.

      Now, all the Republicans have to do is find such a person.

    26. john parry, KS says:

      once again , Gibbs got it wrong !!! the professional progressives need to be drug tested !!!!!

    27. Pingback: Top Ten Reasons America Won’t Miss the 111th Congress | The Conservative Papers

    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.