CEI - TARP2 - Bad Plan, Bad Timing!

President Obama’s announcement that he will extend TARP — the Troubled Assets Relief Program — and keep spending its proceeds could not have come at a worse time. Credit rating agencies are looking at dropping the “Triple A” rating from the U.S. because of the trillions in spending on bailouts, stimulus and other big-government programs. The rationale put forward seems to be that because we spent this for undeserving big banks, it’s only fair to spend the rest of taxpayer dollars on small businesses, But two wrongs don’t make a right, and this money belongs to taxpayers, not to the favored recipients of politicians. Whether TARP fund go to small or big businesses, it’s still government picking winners and losers, and many innovative entrepreneurs will be left out. That’s why any money paid back to the TARP should go for general tax relief or paying down debt that all small businesses and taxpayers could benefits from.

Congress could pursue a real no-cost stimulus for the economy and smal buisness by providing regulatory relief from the mountains of red tape that provides little benefit to investors and consumers. Unfortuately, even limited bipartisan reg relief seems to be at risk from Congressional Democractic leaders. >>> Read the full comment on OpenMarket.org.