Bailout for Main Street on the way?
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Speaking at the Brookings Institute this morning, President Obama outlined his jobs plan designed to bring help to Main Street consumers and businesses.
The three point plan includes tax breaks for small businesses that hire and invest in new equipment purchases, some $50 billion for investment in American infrastructure to help repair roads, bridges, aviation and water projects, and cash rebates for people who retrofit their homes to make them more energy efficient.
All indications are that the TARP plan will end up costing the U.S. government about $200 billion less than originally thought as large financial institutions pay back the loans at a faster rate than anticipated. This has caused many in Congress to suggest that the money previously set aside for financial companies now be spent on job creation.
In reality, the administration does not have the authority to ‘shift’ this money to jobs. The Treasury can, however, use this money to pay down debt, thereby creating more ‘room’ to borrow for a new jobs program.
While one might expect even the GOP ‘just say no’ forces to glumly go along, considering that the program provides tax breaks to small businesses, it appears that they just can’t help themselves. If Obama suggests it, it has to be bad.
Says downer-in-chief, John Boehner, House Minority Leader-
This makes me so angry. I was there. I know all about TARP. First, it was never intended that all this money would ever have to be spent. But any money that wasn’t spent was to go to the deficit. And the idea of taking this money and spending it is repulsive.
This could be a dangerous road for the GOP to set out on. It’s one thing to pick on whatever the President does. It’s another thing to allow jobs, tax breaks to small business and infrastructure improvements to suffer as a part of the GOP strategy for victory.
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The only real bailout for main street would involve zeroing out all personal debt (credit cards and mortgages) and re-regulating all the banks. People without crippling debt will be able to put money back into the economy by spending it on goods and services.
Create consumer demand, then you create jobs.
Well this outta makes things real interesting, real quick.
I guess the cries of “socialism” can finally go out the window? Meh, maybe not knowing the current gop lol
What happen to the trillion dollar stimulus…..which didn’t create a single private sector job…..but was used to buy off teacher unions and state and local government hacks…..?
Wasn’t that supposed to create jobs? And now he has another job plan?
He wants to help consumers…..what are they going to consume when they have no jobs?