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The Shameful Republican party

22 July 2010 12 Comments

: Image by Getty Images via @daylife

As the lazy, hazy days of Summer tick away, and Congress nears its August recess, both of the major parties are staking out their political territories for the battles that will be fought this Autumn. There is little doubt that the biggest issue of all will be unemployment, and the inability of the economy to create enough jobs to move the unemployment rate from a level of around 9.4 %. When election day occurs in November, a stubbornly high unemployment rate, where there is lots and lots of pain and suffering across America, will bring great joy to the Republicans. They will blame the Democrats for a lack of economic progress, conveniently forgetting that the job-killing recession was a legacy passed down from George W. Bush, and that it was their own Republican Party that tried its best to kill every job-creating initiative brought before Congress.

A perfect example of the Republican’s all-out effort to crush any chances of job creation before the elections, is their recent efforts to block a bill that would expand government lending programs and grant a variety of tax breaks to small businesses. The $30 billion measure would make credit available to small businesses through local banks by providing loan guarantees, rather than funds from the U.S. Treasury. In addition, the bill would provide $12 billion in tax breaks for small businesses. Of course, the Republicans have no problems with the tax breaks, but reject the loan guarantees as a mini “bailout”. The irony of this position is that the Republicans have consistently touted “small businesses” as the engine that will power the recovery, and the greatest creator of jobs across America. In other words, Democrat-sponsored measures to potentially create millions of jobs is a good thing, as long as it doesn’t happen before election day. I would have expected nothing less from the “Party of No”.

It is highly doubtful that any further legislation proposed by the Obama Administration will see the light of day after the Summer break and before the November elections. Political “heels” have been dug in, and the Senate Minority Leader, Mitch McConnell, will not give the Democrats a chance to pump up the economy or create much-needed jobs. The pattern of putting politics before people (namely the middle class) has characterized Republican behavior since the disastrous (for them) 2008 elections. The “Party of No” has done a great dis-service to the American people over the last two years by seeking revenge for their embarrassing defeats in 2008, rather than trying to work with the Obama Administration in making our country a better place to live for all of us. For this, they should be ashamed!

12 Comments »

Judie said:

Rich, my sister-out-law’s husband was the author of the new statute regarding the SEC that Obama spoke of yesterday in his speech. We saw very little of him in Cancun because of this. We have forgiven him for not being around much.

The Republicans are scaring me. They are un-American.

# 22 July 2010 at 3:31 pm

VH said:

Americans are going to blame the party in power for the poor economy no matter how much partisan Democrats want to tag the last administration with it. Those are the breaks. Besides, Democrats have held the Senate and the House since 2006—they’ve essentially held the public purse for FOUR years—so they are not completely absolved from the economic collapse. And don’t get me started on Fannie Mae and Freddie Mac and their enablers–all Democrats.

My problems with the $30 billion Small Business Lending Fund :

1) It’s not as if banks aren’t already sitting on massive reserves that they can lend out right now—currently banks are sitting on $1 trillion of excess reserves. What the heck is a $30 billion fund going to do what $1 trillion hasn’t done?

2) In order to fund The $30 billion Small Business Lending Fund, the feds need to borrow money it doesn’t have. (“Um, hello China. Can we borrow another $30 billion? We promise to pay you back.”) I understand that banks that tap the $30 billion fund would issue preferred stock to the Treasury Department, paying dividends based on how much lending they do. But it would take at least 10 years for Treasury to get our money back. No thanks. Let banks use the funds they have now.

3) The $30 billion Small Business Lending Fund is rife with PORK: Aid for the long-term unemployed, Medicare pay for doctors, aid to cash-strapped state governments and the renewal of dozens of popular short term tax breaks for businesses and individuals. Only $2 billion will be used to aid small businesses.

This $30 billion measure smells too much like Cash for Clunkers, Cash for Caulkers, Cash for Appliances, Cash for Homes–ill conceived short term solutions for a long term problem.

# 22 July 2010 at 5:50 pm

KAK said:

“The Republicans are scaring me. They are un-American.”…Judie, these Republicans can’t even be people.

People have to remember all the Republican obstructionism in November, I think they will but holding my breath may kill me. All one has to realize is they will kill unemployment benefits to people who lost their jobs because of Republican policies while at the same time pressing for more tax breaks for the rich. The rich will tell you they are the investors and job creators, they are nothing but the rapists and this better be sinking into the minds of average Joe Blow voter.

# 22 July 2010 at 9:15 pm

Harrison said:

You forget Dems are pushing Cap and Trade again… that will be the economy killer. Oh, and letting the tax cuts expire, too.

Those two subjects might make for an interesting article…

# 22 July 2010 at 11:53 pm

admin (author) said:

Judie,
I guess there are, from time to time, more important things than laying on the beach. It sounds like your “in-law” has a pretty important job to do.

# 23 July 2010 at 8:36 am

admin (author) said:

VH,
The Democrats may have held power in the Senate and House since 2006, but (as you know) it doesn’t mean “squat” when a Republican President holds the power of veto, and it takes a two-thirds majority to override.

The banks are, in fact, sitting on huge amounts of reserves. The new bill wants to use those same reserves for actual lending to small businesses under the guarantee of the federal government.

One man’s “pork” is another man’s livelihood, VH. What’s wrong with extending benefits for the unemployed, or helping the states cope with medicaid payments for the uninsured? The bill is a far cry from “Cash for clunkers” because it aims to help small businesses grow and create jobs.

# 23 July 2010 at 8:45 am

admin (author) said:

Kevin,
I don’t know whether voters in November will punish the Republicans for two years of obstructionist politics, or will be duped into believing the Democrats are responsible for the sad economic state-of-affairs. It will be up to the Administration and the Democrats to ensure that independent voters are not swayed by the radical right.

# 23 July 2010 at 8:55 am

admin (author) said:

Harrison,
What’s so bad about Cap and Trade? It sounds like a pretty good idea to me. The idea that Cap and Trade will “kill” the economy is not accurate.
Letting the Bush tax cuts for the wealthy expire will correct a grave mistake that has resulted in mega-billion dollar deficits for the country. Trickle-down economics is not a good way to create lasting prosperity across America. It’s time that the wealthy step up to the plate and begin to pay their fair share of taxes.

# 23 July 2010 at 9:10 am

KAK said:

“You forget Dems are pushing Cap and Trade again… that will be the economy killer. Oh, and letting the tax cuts expire, too.”….Harrison, the economy is DEAD, thanks to the Republicans who may have brought us the second Republican Great Depression.

Harrison, I will agree with you on one thing, Cap and Trade is a white elephant. It is an attempt at getting green house emissions under control and paid for by those responsible and will do no such thing. It will however provide another rigged roulette wheel for the banking casinos to make billions on.

Admin, “The banks are, in fact, sitting on huge amounts of reserves.”….This I do not believe to be true. The banks are taking up to two years to forclose on houses with the average being 15 months, this is a sign that bank balance sheets cannot handle the resulting write downs. Eliminate the deceptive accounting practices, subtract the bad loan write downs and watch the new kill the customer with high bank charges as is happening right now and we have a banking industry still on the verge of failure.

# 23 July 2010 at 9:11 am

VH said:

Rich:

This bill will do little for small businesses. It’s way too small (less than 7% of the bill!!) and it will actually cost taxpayers more than it helps in the long run. They should call it the “$2 billion small business funding act” if Dems want to be honest: Democrats have tacked on goodies to buy votes while trying to pass it off as helping small businesses; there’s nothing wrong with unemployment benefits or Medicaid payments but larding this bill with them is simply disingenuous.

Don’t get me wrong, I’m not a big fan of Bush Republicans but since 2006, the Democrat majority could have been more vocal about controlling spending. Instead they routinely larded bills with porkand then they later would stand on a soapbox reciting the virtue of “pay-go” and how reckless tax cuts are. Now “pay-go” is out the window and there are Democrats calling to extend Bush’s tax cuts. Now that is shameful.

# 23 July 2010 at 4:28 pm

admin (author) said:

VH,
I will agree with you that the money being made available to small businesses in the bill is far too small to make much of a difference. I will also agree that tacking on unrelated business to the bill is disingenuous. I really wish that lawmakers would stop doing that.
I have not heard of any Democrats calling for an extension to the Bush tax cuts? Can you provide any detail on this?

# 24 July 2010 at 2:53 pm

KAK said:

Is it fair to blame the republicans for all the worlds ills. I know in my little world it works for me. Is it the republicans fault that Im almost 56 and have no home and never will? Is it the republicans fault that I have little or no money and live at my moms house? Is it the republicans fault that my most valuable possessions are a junk van and an aging motorcycle? My successful sister who has everything in life you could want criticizes me for not working and no health insurance. I worked hard for a couple summers and didn’t get rich so why should I do anything when my mother will take me in and let me live there rent free? My a**hole brother got land from my father and I got squat. All he did is call me “dumb, stupid bastard”. Is that the republicans fault? I think its related to them and their ideological subconscious effect on peoples attitude about people like me who have lost the motivation to work for a living since the deck is stacked against the average Joe Blow anyway.

# 25 July 2010 at 7:46 pm