By Randall Rasmussen
It was about one year ago that the wizards of Washington, D.C., panicked and announced to the world that the U.S. economy was on the verge of collapse and only an emergency expenditure of $700 billion would rescue the country from something worse than the Great Depression.
If you remember way back then, the original price tag of the Emergency Economic Stabilization Act was in the neighborhood of $550 billion to $600 billion, but in order to pass the emergency legislation that we were told was necessary for the good of the nation, more than $100 billion in earmarks, special interest goodies and pork projects was added to get a majority of lawmakers on board.
Republican Sen. John Thune of South Dakota voted for the bill that came to fund the Troubled Asset Relief Program, while South Dakota Democrats Sen. Tim Johnson and Rep. Stephanie Herseth Sandlin voted against it.
(For the record, because it almost certainly will be brought up by the usual suspects on Mount Blogmore, I opposed the funding and the TARP program last year and was disappointed that Sen. Thune and President George W. Bush would support such a huge waste of money.)
Today, Sen. Thune and Sen. Johnson have switched sides.
Thune opposes the TARP program and has signed a letter to Treasury Secretary Tim Geithner asking him to let the program expire on Dec. 31, 2009, and return unspent funds to reduce the debt.
“Subsequent to the enactment of this legislation, however, TARP has been used by the federal government to acquire ownership stakes in banks, financial institutions, and automakers,” the letter said. “This direct investment certainly was not the intention of Congress in passing this legislation.”
Johnson now supports the TARP program that he first voted against. “I think it’s premature to get out of the TARP process at this time,” he said. “After all, it has saved us from a great depression.”
Rep. Herseth Sandlin, on the other hand, has been more consistent. She voted against the legislation last year and now wants to take TARP away from the Treasury Department and have a board of trustees adminster the program.
She says the core problems that caused the economic crisis haven’t been solved by the TARP program.
“Clearly, there is plenty of blame to go around,” she said. “But we have to ensure more transparency, more accountability and get rid of some of the perverse incentives that were going on on Wall Street that helped create some conditions for predatory lending or bad choices.”
I support Thune’s efforts to end the TARP program and return the money to taxpayers. But I can’t help but believe that Thune voted for TARP last year because President Bush and Republican presidential candidate Sen. John McCain also were for it, and that he opposes it now because a Democratic administration is running the program. Johnson is acting in the same degree of partisanship –- opposing TARP last year because Bush and McCain were for it and supporting it now that his own party is handing out the money.
I never believed the bailout money was needed to save the economy, which, by the way, has gotten worse, not better. It’s easy to say that the bailouts prevented a depression since there’s no way to prove or disprove that argument. The fact that politicians from both parties can be for or against something as costly as the TARP program depending on which party is handling the money automatically discredits it as an absolute necessity.