Just saw this release from Jim DeMint about Bush's unilateral $17.4 billion bailout of Detroit:
“This decision is
disappointing. While the bailout may provide a short-term boost to three
companies, it will not force them to fundamentally improve their operations and
become competitive in the long-term. This decision, I am sad to say, runs
counter the interests of American taxpayers, American consumers and the American
auto industry,” said Senator DeMint.
“I also believe this action is
unconstitutional. The Executive Branch must have the consent of Congress to
appropriate taxpayer funds. Yet the bailout legislation passed earlier this year
does not permit the Administration to use taxpayer money in this way, and
Congress rejected the auto bailout when it was brought up for a vote last
week.”…
disappointing. While the bailout may provide a short-term boost to three
companies, it will not force them to fundamentally improve their operations and
become competitive in the long-term. This decision, I am sad to say, runs
counter the interests of American taxpayers, American consumers and the American
auto industry,” said Senator DeMint.
“I also believe this action is
unconstitutional. The Executive Branch must have the consent of Congress to
appropriate taxpayer funds. Yet the bailout legislation passed earlier this year
does not permit the Administration to use taxpayer money in this way, and
Congress rejected the auto bailout when it was brought up for a vote last
week.”…
The senator and I are not on the same page when it comes to other "bailouts" — we definitely disagree about the Obama infrastructure thing — but we're on the same side on this one. All of his libertarian populist rhetoric aside, this IS a constitutionally objectionable action. As I wrote in this editorial earlier this week, the president "takes too much upon himself."
And the thing is, nobody's going to stop the president from doing this — certainly not the Congress. George Will will have an interesting piece about that on our Sunday pages.
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The TARP bailout is unConstitutional.
Social Security is unConstitutional.
Medicare is unConstitutional.
Welfare is unConstitutional.
The automobile makers could be bailed out with a refund of all the taxes they paid in good years, when Uncle Sam showed up to be their partner and take his half of the money.
This loan will do nothing but prop up the automakers while they pour out money to the UAW, who is unwilling to make any concessions.
And why should they?
They blew of Congress because they knew President Bush would come to the rescue.
Now they say they won’t give up any wages or benefits in return for the $17.2 billion, because Obama is already promising to pour more billions of taxpayer money into subsidizing the UAW wage extortion.
The bailout of private corporations seems wrong for many reasons but most importantly because the Federal Government seems to be more powerful than it was ever intended. As a condition of bailing out the auto industry it will now be able to purchase stock? That raises a red flag.
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