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Wall Street Bailout Won’t Work Without Economic Aid for Workers
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The $700 billion Wall Street financial bailout package congressional leaders and the White House reached over the weekend does far too little for homeowners and vests far too much power in the Bush administration—whose policies and lack of oversight are at the root of the financial crisis, says AFL-CIO President John Sweeney.
The vote in the U.S. House failed this afternoon, and it is unclear if the bailout bill will come up for a re-vote in its current form.
Sweeney warns that if passed, the deal will require “vigilant monitoring” and will not work without a strong economic recovery plan for working families. Without a recovery package like the House passed last week—Senate Republicans blocked a similar stimulus bill—the new bailout plan will not address the real underlying weaknesses in the U.S. economy, and it will not earn the confidence of working men and women. It should not be enacted unless Congress moves forward with a meaningful economic stimulus package now.
A bailout proposal from congressional Democrats last week would have gone much further in protecting taxpayers and offering relief for homeowners, along with more effective oversight and control of how the money is spent and the program operates. But Sweeney says after congressional Republicans and President Bush worked to block the recovery package,
they spent the weekend watering down the bailout bill that is now before Congress—weakening the independent oversight as well as the limits on executive compensation and eliminating bankruptcy relief for homeowners.
Last week, Damon Silvers, AFL-CIO associate general counsel, told the PBS news show “Now” (see video):
If we’re going to bail out the wealthiest and most powerful institutions in the economy with public money, with working people’s money, surely there ought to be some understanding that we’ll also help people who really need help, people who are unemployed, people without health insurance.
Sweeney says a financial collapse poses “very serious risks for working families” and there is need for comprehensive government action.
But we have serious doubts about the precise plan being proposed.
Congress, Sweeney says, must pass an economic recovery plan, like the stimulus bills voted on last week, to offer real help to families on Main Street.
Both the Senate and House stimulus packages called for a seven-week extension of unemployment insurance (UI) benefits for jobless workers who exhaust their benefits—13 weeks in states with high unemployment.
So far this year, the economy has shed more than 600,000 jobs, and more than 9.4 million workers are officially unemployed. It is estimated that, by the end of the year, some 1.1 million jobless workers will run out of both their regular UI benefits and the 13 weeks of extended benefits passed earlier this year.
The House economic recovery package offered $32.4 billion for job-creating infrastructure projects, including bridge and highway repair, water and sewer projects, public transportation and school repair and more.
The House bill also included $14 billion to help states pay their share of Medicaid costs.
Without recovery aimed at working families—including bankruptcy reform for homeowners—Sweeney says the bailout looks like what it is, help for Wall Street when what America needs is help for Main Street.
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11 Comments
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as we guessed, the Bush Administration bails out its wealthiest of the wealthiest at our expense.
The greedy CEO’s and stock brokers who got us into this mess should pay for this economic mess right out of their own pockets from the money they stole! Amen.
What happened to compromise?
Congress gives the lame duck a bail out proposal that helps working class families 1st, smaller portion of $$ to Wall St. ONLY
if lame duck and Cheney turn over wanted emails, Miers and Rove agree to testify and honor their supoenas. If lame duck disagrees, no dice and the $$ goes directly to the working people of America!
As Eugene Debs once said, which is the greater crime? To rob a bank or run one? The greater crime is to run one. We can now see the wisdom of his words. Working people in the U.S. are being robbed by the banks and speculators. —But here’s what I want to know—when will we realize that its the working people who make this country function, so who needs CEO’s with golden parachutes? We need to challenge the concept of “profit” in this society. No one should be allowed to make huge profits when there are people losing their homes, sick without health care, hungry without food and wanting work but unable to find a job. We need to do a lot to change this society so let’s get started.
For years, Republicans have railed against any regulation of the markets. They have assured us that, when left alone; the free markets will self-regulate. Why are so many Democrats jumping on the bandwagon to bail these self righteous hypocrites out of the mess they have gotten themselves into? Let these markets self-regulate, if Main Street doesn’t get as much of a “Buy In” as Wall Street.
Let the games begin.
I like what True Democrat has to say, except it does not go far enough. Bailing these guys out is one thing, and only 50% of the deal, because the Americans are paying for it the Americans should see equal benefit. Also without oversight, laid down in law, no deal.
These guys have screwed up so bad it is beyond belief and now they want to take our money and screw up some more. Do they think we are THAT stupid ? They treat us like sheeple because we have accepted King George without a peep. We’ve gone to hell in a handbasket.
Dutch Nurse,Yes we are as stupid as they think we are.We have for many years re-elected this bunch of people do us over and over again.We never seem to learn,we must start voting against incumbents and pushung hard for term limits and a viable thrid party.So long as we are stupid enough to re-elect these same Democrats and Republicans nothing is going to change.
No bailout, it is just that simple! Wall Street doesn’t need one and we don’t need one. Why the hell is everybody always looking for a freaking hand out…… I know it’s all the entitlements the democrats want to give people. Big government is the problem not the solution.
If economic collapse is imminent without a bailout, why are the Republicans so intent on messing things up by watering down the version that the Democrats have worked so hard for which included common sense protections for average Americans, common sense regulations to prevent greed from taking over, and protections for homeowners. It seems to me the economic collapse either is fabricated to be bigger than it will play out to be, especially if the bailout does not happen right away, or two, it is the trump card played by the Republicans to get everything they want for the wealthy. Either way, Americans get screwed once again, because right now the people suffering most are the ones who really need their own bailout. Many in Congress see the need to protect average Americans by this bailout, yet there are still those who would rather see America fail than help the lower and middle class. This takes greed to a whole new level. Why is it so important to pit one group of people against another, when clearly, an honest financially sound bailout would benefit all parties concerned.
What Congress should do is this. First, the Democrats should draw up a new bill with even more stringent protections for the poor and middle class and homeowners, with even lower caps on bank profits and CEO salaries. In other words, draw up a bill that is exactly what they would like to see. Then encourage all Democrats in the House to come aboard. I think they will, and it will pass easily in the House. Then take it to the Senate. No changes, no veto pens, and let the Senate vote on it. If a financial collapse is really imminent, it will pass; if it isn’t, the Republicans will vote it down. It will then be their mess, and their ruin by not passing a bill that they claim we need more than life itself. Then, let’s see what happens.
First I’m not a Democrat or a Republican the only people I see trying to scare the country into I’m not sure what is the Fed chairman,Sec.Paulson,Pres.Bush and a whole bunch of Democrats.I would just like for anyone to tell me exactly what they think is going to happen and why not one economist has been called to testify in front of Congress.There are many experts in this field and I don’t see Congress talking to any of them.I do not trust Washington to do anything that is not for the benefit of Big Business.I am pretty sure whatever Congress does we will be sorry.
I cannot believe that this financial issue needs such immediate attention. Years of democratic policies have brought us to this point and they didn’t even have the balls to pass the bailout yesterday. What a bunch of weasels. But that is a good thing in my opinion, there should be no bailout. This is the party that labor continues to cling to for political clout. Absolutely ridiculous.