Not Again!:Obama is Ready to Bailout the States (Part II)

President Obama and Democrats are ready to bail out the states again. The President wants a $50 Billion  bailout for states  and local municipalities to prevent layoffs. This comes at a times when the public has had enough of payout to unionized government employees. At  9.7% unemployment there is not enough civilian workers to pay off the people. From The Washington Post:

President Obama urged reluctant lawmakers Saturday to quickly approve nearly $50 billion in emergency aid to state and local governments, saying the money is needed to avoid “massive layoffs of teachers, police and firefighters” and to support the still-fragile economic recovery.

In a letter to congressional leaders, Obama defended last year’s huge economic stimulus package, saying it helped break the economy’s free fall, but argued that more spending is urgent and unavoidable. “We must take these emergency measures,” he wrote in an appeal aimed primarily at members of his own party.

Democrats are nervous to support more spending especially as the mid-term elections on the horizon:

The letter comes as rising concern about the national debt is undermining congressional support for additional spending to bolster the economy. Many economists say more spending could help bring down persistently high unemployment, but with Republicans making an issue of the record deficits run up during the recession, many Democratic lawmakers are eager to turn off the stimulus tap.

“I think there is spending fatigue,” House Majority Leader Steny H. Hoyer (D-Md.) said recently. “It’s tough in both houses to get votes.”

Democrats, particularly in the House, have voted for politically costly initiatives at Obama’s insistence, most notably health-care and climate change legislation. But faced with an electorate widely viewed as angry and hostile to incumbents, many are increasingly reluctant to take politically unpopular positions.

From the Republican perspectives the American people had enough:

Don Stewart, a spokesman for Senate Minority Leader Mitch McConnell (R-Ky.), called the letter full of “contradictions.”

“He’s calling on Congress to pass a [jobless] bill that will add about $80 billion to the deficit, but then calls for fiscal discipline; he says these measures need to be targeted and temporary, but then calls for extending programs passed in the stimulus more than a year ago,” Stewart said in an e-mail.

Republicans have offered an alternative package that proposes to cover the cost of additional jobless benefits — but not aid to state governments — by cutting federal spending elsewhere. In contrast to the Democratic bill, the GOP measure would reduce deficits by nearly $55 billion over the next decade, according to the nonpartisan Congressional Budget Office.

Lady Margaret Thatcher had it right( I’m paraphrasing): The trouble with Socialism is that you run out of other people’s money!

Washington Post’s  Post Politics blog

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