The Democrats huge Bail Out proposal 2009. The line forms to the Left.

The Democrats in the House released their version of the next big bail out.  It is called The American  Recovery and Reinvestment Bill of 2009 and at $825 billion is the largest give away yet.

Congress also released the $350 billion of the first  $700 billion TARP bail out of financial institutions.  You know, the one where all the money was given to the financial institutions so they could continue to pay their CEO’s huge bonuses and then when asked where the money went they told the tax payer who is footing the bill to buzz off.

At any rate Obama promises the next $350 billion will have strings and oversight.  We will just wait and see.  He does after all have to repay a whole lot of contributors to his campaign so can’t afford to be too vigilant.

Following is a briefly itemized account of the new $825 billion bail out.  See what you think of it.  My comments are given and yours are welcome.  It is after all your money Congress is proposing to spend so you should have a say in it even if it is only on a blog.

“The measure would provide $79 billion to state and local governments to prevent cutbacks in vital services, including $39 billion to local school districts and public colleges. It would provide $30 billion for highway construction and $19 billion for clean water, flood control and environmental restoration efforts. Another $84 billion is set aside for renewable energy production and enhancing energy efficiency.”

Greensboro has in mind to finish that  “6 lane boulevard” around the city that isn’t around the city at all but right thru residential areas.  Yes, the same one where the citizens complained so much about the noise that the state finally directed the traffic back onto Interstate 40 thus leaving the “boulevard”  more or less for local traffic.  And yes by all means,  a chunk of Greensboro’s share will be taken right off the top for Robbie Perkins Downtown Greenway.

“Many of the provisions are designed to spark quick job creation in areas such as road building and health-care. They also are intended to promote a shift toward “green jobs,” where construction workers retrofit and modify federal buildings, public housing and even “modest-income homes” to enhance their energy efficiency.”

This is good.  Many of us in Greensboro, led by Diane Davis have been begging that our public buildings be modified for solar energy.   That is installing solar panels on the roofs.  The money spent on these projects would come back quickly in saved electric costs.  Hot water could also easily be installed for buildings with a few solar water panels that are now relatively cheap.

“The stimulus plan proposes $43 billion for increased unemployment benefits and job training.

It also includes another $39 billion to subsidize and extend the period of government-mandated health-care coverage — called Cobra — for laid-off workers. The measure would extend the 18-month limit of Cobra coverage for laid-off workers who are 55 or older. Workers who’ve been employed 10 years or longer by one company would be able to retain Cobra coverage until they find a new job or become eligible for Medicare.”

There is no doubt the unemployment rate is going to go up.  Some estimate as high as 12% in the next year.  As for the extended health care coverage being extended for workers over 55 until they get another job or are eligible for Medicare I think this is just a ploy to extend Medicare and move towards the Democrats and Obama’s goal of Universal Health Care.  Seeing as Medicare is now on it’s last legs and wobbling this is sure to bring on it’s bankruptcy a bit sooner.  Oh well, the sooner we fall the sooner we can start to pick ourselves up again as my daughter once said.

“The tax measures also would allow businesses to more quickly write off expenses and equipment. A number of provisions would spark purchases of state and local bonds and extend tax credits for renewable energy production.”

When businesses are helped it means they can afford to hire more workers.  It is that simple, but somehow people tend to forget that businesses are where the jobs are.  We are no longer living in 17th century and before where the masses were employed by the few wealthy as domestic servants and farm workers on the owners land.  Our employment comes from private for profit companies.  (And of course more and more the governments:  local, state and national!)

House Democrats would fulfill Obama’s promise of a tax credit for most Americans. Single filers with adjusted gross income below $75,000 would receive a $500 tax credit, while joint filers with adjusted gross below $150,000 would get back $1,000.

For employed Americans, this credit would come quickly in the form of less money deducted from their withholding taxes. Because it’s refundable, Americans without income could apply for it. The measure also proposes expanding the earned income tax credit for poorer workers and increasing the child tax credit.”

Take note: “Because it’s refundable, Americans without income could apply for it.”  Yep.  Once again the government is handing out workers money to non-workers!  That means me and all other retirees on Social Security and pensions, and it is nonsense!  Remember Bill Clinton laughing about the Bush Tax cuts, and claiming that Bush was giving him, (a millionaire plus) a tax cut?   Well this is the same thing.

As for the next group of provisions, I  really don’t see how  they can stimulate the economy, and besides,  the amounts offered certainly don’t seem adequate to do anything at all for the problems they address.  So this just appears to be a bit of Pork in a bill that claims to have none.  Or maybe they are a sop to certain agencies or groups.  At any rate here they are:

“Much in the package appears unrelated to short-term stimulus or long-term competitiveness. For example, it would give $1 billion to aid states in the collection of child support, another $1 billion toward preparations for the 2010 census, $4 billion to support local law enforcement and $800 million to clean up hazardous and toxic waste sites.”

The $800 million to clean up toxic sites is sure to be on Greensboro’s  “Me to” List to clean up the Canada Dry property the city recently purchased for a sum well above the appraised value and polluted at that.  But that only comes to $16 million per state  and according to my notes the figure bandied about for cleaning up the CD property was $3 million.  So probably Greensboro’s share will allow the knocking down of the weeds and trash removal.

Then there are : “Provide $20 billion to increase by more than 13 percent the food-stamp benefit.

_ Give $87 billion to state governments for a temporary increase in the matching rate that the federal government pays to support their Medicaid programs for the poor and disabled.

_ Designate $32 billion to “transform the nation’s energy transmission, distribution and production systems” to build a “smarter” energy grid that can use more inputs from renewable sources, such as solar, wind and alternative fuels.

_ Set aside $16 billion to repair public housing and install energy efficient windows, heating and cooling units and other such improvements.”

Maybe these last will do some good, but will hardly produce jobs.  In fact they will simply add to the entitlement programs.    I would much rather see the entire amounts listed here given over to  “transform the nation’s energy transmission, distribution and production systems” to build a “smarter” energy grid that can use more inputs from renewable sources, such as solar, wind and alternative fuels.”  This would certainly produce jobs and would prepare for a much better future.  Our nation’s energy transmission system is old and crippled already and certainly  desperately needs repaired.  And if the idea is to get more money into peoples pockets then lowering the power bills will do that.

So there you have brief outline of the Democrats proposals.  Now we will see what the Senate and Republicans have to add.  BB

Source of quotes:  http://www.mcclatchydc.com/227/story/59782.html

Advertisement