Yesterday before the Joint Economic Committee, Federal Reserve Chairman Ben Bernanke made a clear case as to why federal action is needed: home mortgages and car loans had become harder to get, commercial credit was becoming scarce for many businesses and consumer spending had already declined. Leaders in both parties know that inaction will hit Main Street hard. According to The Washington Post, public utility companies will have to raise rates to cover the increased costs of short-term borrowing, two-thirds of National Small Business Association members report feeling pressure from …
Federal Reserve Chairman Ben Bernanke told Congress Monday that health care spending will “rise relentlessly” unless lawmakers overhaul the health care system. As if trying to prove his point, PriceWaterhouseCoopers released a study yesterday showing employer health care costs will increase 9.9% in 2008, more than double the annual rate of inflation. Liberals will tell you that health care costs can be controlled through more government regulation of the health care industry. For example, Sen. Barack Obama (D-Ill.) says he can save $200 billion in health care spending every year …
The recent failures of Bear Stearns and the Carlyle Group, coupled with turmoil in the housing markets and overall pessimism about the economy, has Congress rushing to microphones to promise a legislative quick fix. Meanwhile, President Bush and the Federal Reserve are being second guessed by liberal economists for not promising more government intervention. What is the best course of action for the government to take? Today former congressman Ernest Istook, a distinguished fellow at Heritage, sat down with Heritage’s top economists, Bill Beach, David John and J.D. Foster, to …
The campaign to turn the current economic turmoil into justifications for new invasive federal government intervention in the marketplace is in full swing. The Hill reports, “After Bear Stearns bailout, Dems renew push to help homeowners,” and E.J. Dionne comments: “Never do I want to hear again from my conservative friends about … how government should keep its hands off the private economy. … The Wall Street titans have turned into a bunch of welfare clients. They are desperate to be bailed out by government from their own incompetence, and …
Reports following Federal Reserve Chairman Ben Bernanke’s Monday meeting with Speaker Nancy Pelosi indicate that House Democrats are considering a $100 billion economic stimulus package that “money for ailing state governments, higher Medicaid spending and an increase in food stamp payments.” Completely ignoring their election promise to pay for any proposal increased spending by raising taxes or cutting spending elsewhere, Democrats are also considering tax rebates of $300 to $500. Such a plan would not help stimulate the economy since tax rebates do no stimulate the economy. Tax cuts do. …
