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A government big enough to give you everything you want, is strong enough to take everything you have! - Thomas Jefferson

Friday, July 11, 2008

No More Taxpayer Bail-Outs, Says Bob Barr

"The Senate is preparing to pass a $300 billion housing bail-out, and Sen. John McCain and others are talking about a separate rescue of Fannie Mae and Freddie Mac, which have lost some $11 billion in recent months, and own or guarantee some $5 trillion in mortgage debt. Congress must say no to any new bail-outs," says Bob Barr, the Libertarian Party candidate for president. "Washington politicians are creating a culture of fiscal irresponsibility that threatens to drown the American people."

The annual federal deficit runs more than $400 billion. The national debt is $9.5 trillion. The total unfunded liabilities for Social Security and Medicare exceed $100 trillion. "We will begin to control federal spending only after Congress says no more," argues Barr.

The problem is more than creating a tidal wave of red ink. "Artificially pushing down interest rates and directing more money into the housing industry also risks further reducing the value of the dollar," notes Barr. "That makes everything we buy from overseas cost more, including oil. In fact, one of the reasons gasoline prices have risen so far so fast is because of the dramatic fall in the value of the dollar."

Moreover, "Congress is creating a bail-out culture, in which people assume that the government will cover their bad decisions," warns Barr. "Washington bailed out the savings and loans. It bailed out big banks that made bad loans to Third World countries. It is preparing to bail-out irresponsible home-owners, mortgage lenders, and investors."

"Capitalism cannot work if businesses collect any profits while taxpayers get stuck with any losses," Barr observes. "Cleaning up Uncle Sam's balance sheet won't be easy, but we must start by not adding any more red ink. And that means no more bail-outs."

"It is bad enough to waste our own money," says Barr. "But we have a special moral responsibility to stop burdening our children and grandchildren with trillions in debt. When it comes to new spending proposals and special interest bail-outs, Congress should just say no."

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