Click to enlarge photos.By Phil Gingrey
Guest Columnist
Over the past few months, a vast majority of Americans have watched in disbelief and anger as the federal government has burned through hundreds of billions of taxpayer dollars to bailout private companies for their mistakes. I imagine many Americans have wondered what happened to the free market, the principle that one should pay for one's own mistakes and only benefit from hard work and wise decisions.
The administration's move to bail out the struggling auto industry with mostly Democratic Congressional support is a very slippery slope on which we find ourselves where the federal government picks winners and losers - forgiving the consequences of failure by giving away hard-earned taxpayer dollars.
For far too long, Washington has thought the only way to solve a problem is to write a check first and then ask questions later - if at all. We need look no further than how the Treasury has managed the Troubled Asset Relief Program (TARP) with little to no disclosure and in a manner inconsistent with the intent of the legislation passed by Congress to free up credit markets.
Those on the left say that it is the failure of the free market that has brought us to this economic crisis that some claim has us on the brink of economic collapse. Their argument is that government intervention is the only answer. The truth is that the economic crisis we face now is more the product of decades of trampling on the free market. The bad loans that clogged our credit markets are the product of government mandates on lending institutions to put people into homes they could not afford. Really, it is in many ways government intervention that has put us where we are now.
Washington cannot continue to act as if it has all the answers. We have bankruptcy courts and judges with decades of experience for a reason, and that is to help companies move from insolvency to solvency in accordance with the law. It worked for Georgia's own Delta Air Lines, why should Chapter 11 bankruptcy not be an answer for the auto manufacturers.
Rest assured more companies will come hat-in-hand, looking for their bailout. Why would they not - when the federal government has essentially hung a "Free Money" sign over the doors of the Treasury. The angst most Americans now feel from seeing headline after headline about the latest bailout will soon give way to something much worse.
When all is said and done, there will be one more big bailout - the biggest bail out of them all - one that will be proposed by the Obama Administration and supported by the Democratically controlled Congress - the bailout of the federal government in the form of a massive tax increase on American taxpayers and their businesses. Especially considering that for all the campaign promises of scalpels and line by line reviews, President-elect Obama seems more likely to need a shovel so that he can pile on more spending.
This money will have to come from somewhere and have no doubt about from where - from you and the pockets of every other taxpayer. We all recognize the truth in Benjamin Franklin's aphorism about "death and taxes," but it is difficult for hardworking Americans to accept tax increases when Washington demonstrates no inclination to cut wasteful spending.
In fact, it seems that the only place many on the left will even consider cutting back is defense spending. Democrat leaders such as Congressman Barney Frank, a leading proponent of bailout after bailout, has also proposed a 25 percent cut to the defense budget to help fund more government spending while our adversaries are increasing research into developing the next generation of military technology. This is highly irresponsible. We must ensure that as our brave men and women in uniform defend our nation, they are not only the best soldiers but also equipped with the best and most advanced technology to ensure their safety and success.
As 2009 approaches, Americans will be faced with two choices - more government control over their lives or less. But with Democrats firmly in control of Congress and the White House, Americans need to keep in mind that with talk of more government intervention and billions maybe trillions in stimulus and bailouts on the horizon, the bill to the taxpayer for all this spending is not yet "in the mail," but it will be - sooner rather than later.
U.S. Rep. Phil Gingrey, M.D., is a Republican from Marietta.
Comment on this Story
Posted Comments
Here is the official Dixie-publican position that will be heard over and over in the coming months. "It is not my fault" Well, as a doctor Phil should know that you first must stop the bleeding and then address the cause. The "R" guys hung the first Bush out to dry when he had to undo the voodoo economics of the Reagan tax cuts but just can't bring themselves to smear their rubber stamp of Bush Jr. All this happened on your watch, the free market has not policed itself, in mass they support Phil Gramm's gutting of regulations, and refuse to admit that their own people turned mandates to assist home buyers into predatory lending while they protected the millions in bonuses and unearned profits of the white collar criminals. Phil needs to get his facts right and tell the truth, the days of blindly following the right wing spin are over.
"The bad loans that clogged our credit markets are the product of government mandates on lending institutions to put people into homes they could not afford. Really, it is in many ways government intervention that has put us where we are now." Yes, let's blame the liberals since FDR for this initiative as the reason for the financial collapse. The truth is, the story is much more complex and there are more reasons than just this one. Business as usual, Phil. Can't we get past "left" and "right" and get something done in Congress?
Yes our elected leaders have created a huge taxpayer funded bail-out mess ! But the blame and responsibility belong to Bush, Isakson and Chambliss - they are the "brain trust" that Georgians sent to DC that promoted and voted for the bailouts of banks, insurance companies, auto manufacturers, and auto loan companies. President elect O-Bama will inherit the Bush, Isakson and Chambiss taxpayer disaster and now they will have to figure a way to reverse THEIR previous votes and positions and get in step with the likes of Representative Gingrey and Senator Shelby. Or maybe resign when their leader Bush goes back to Texas ?
President Bush just authorized bailout money for the auto industry all by himself. Unless I have missed something, he is still a republican. We have been subjected to republican presidential rule for 20 of the last 28 years so don't give us that constraints on the free market piffle. Why do you advocate for libertarian policies for the American economy that economists predict would plunge us into a world wide depression? What world do you live in and who writes your scripts? Phyllis Schlafly for heavens sake?
The money will be coming from the pockets of the rich like yourself, not the everyday middle class working man. Stop the whining. Obama is here and its time to pay the piper. You guys have been ripping off the poor and middle class my entire lifetime. Exactly why you will never get my vote.
Funny how Gingrey won't mention Bush's name in all this, just "the administration."
No one really wants to address the issues. You write your congressman and can never get a direct answer from them. Stop all of the finger pointing and do the right thing before our economy collapsed. The Govt bailed out AIG and they turn around and give bonuses this year. They said it was needed to keep the top talent. The top talent caused this mess, why reward them? The three major banks received bailout money to lend to the consumers. Bank of America responds by saying they are going to tighten their lending standards. The bailout money is in reserve. Who in Washington is going to step up and do something? Let these companies fall on their faces, they do not deserve any Govt intervention.
What do you expect from gingrey. He is afraid his rich friends will have to start paying their share of taxes.
It is way past time for a moratorium on Taxes. No one should file taxes unless they have money owed...then stop paying. They are robbing this country til there will be nothing left!
Funny, I don't see Dr. Gingrey refusing his taxpayer funded salary of $169,300 or even the upcoming automatic Cost of Living increase. What has he specifically done to earn it besides contributing to the rhetoric and dysfunction in Washington?
Wow. Our Rep in congress doesn't even understand how we got here. Mr Gingrey, over 80 percent of sub-prime loans were granted by institutions not governed by the CRA. It's common knowledge. Please do your homework before representing me again. Thanks.
Rep Gingrey, I've read your editorial several times and it amazes me that you have much blame to throw around and many dire warnings but absolutely nothing to offer in the way of solutions. If I read between the lines of your writing, I can only gather that you think the fed govt would be better off doing nothing or less than nothing at this time. To hold that view is to ignore basic fiscal actions by a govt in a time of economic downturn. Of course, your reply will be "cut taxes!". Please explain to me how that changes the consumer mind set to spend and reduces the national debt while reducing the severity of this down cycle? Truly - it would be nice to at least hear something like answers from you instead of complaining and hyperbole.
Sorry, but in thinking about what I just wrote it occurred to me that you might also say "cut taxes and cut spending!". Which is fair and I'd like to know where? Given that over 80 percent of what we currently spend federal funds on consists of entitlements, Defense, and interest on our debt - please tell us where you think we'd gain back the deficits and debt we're running now with cuts.
What is rich, who is rich? What do you define as rich? Why so much hatred for someone who makes money money than you? What if the business owners and those who are "rich" stopped doing what made them that way? What if they closed up their businesses and decided they were tired of being the top 10% who pay the taxes for the bottom 90%. Has a poor person ever given you a job? Stop the hating and the jelously. Make the most of your life. If you don't like the amount of money you make, make changes to make more, don't ask for someone else to give you what they earned.