- Our Party
For Immediate Release
Wednesday, September 17, 2008
Another Federal Bailout: “I Told You So,” Says Bob Barr
“Richard Nixon once said that we are all Keynesians now, meaning that Republicans and Democrats alike believed in government micro-management of the economy,” observes Bob Barr, the Libertarian Party candidate for president.
“It appears that President George W. Bush should say that we are all socialists now," says Barr, as he explains that the government has now taken over insurance giant AIG with an $85 billion loan, for which it received an 80 percent equity stake in the company. "In other words, the federal government now will own and run one of the nation's largest insurance companies."
“This administration, supposedly devoted to free markets and fiscal responsibility, has bailed out the housing industry, the quasi-government mortgage companies Fannie Mae and Freddie Mac, the investment house Bear Stearns, and a leading insurer. What’s next?” asks Barr.
“And how will we pay for this ever-rising bill for corporate welfare? The national debt already runs $9.5 trillion,” Barr explains. “The deficit this year will run a record $407 billion. Next year the red ink will be even greater. And there are trillions upon trillions of dollars that will come due under Medicare and Social Security as the Baby-Boomers retire,” he adds.
“Moreover, the latest bailouts are being made in secret by the Federal Reserve. At least the housing and Fannie/Freddie bailouts came with congressional authority, if not understanding,” notes Barr. “However, no one voted to pour taxpayer funds into Wall Street. And no one voted for the government to take over an insurance company. If the Federal Reserve can spend as much money as it desires to bail out any company that it desires, is there anything that it cannot do with taxpayer funds?” asks Barr.
“President Bush should fire Treasury Secretary Henry Paulson," insists Barr. "We need a Treasury Secretary who can be trusted with the keys to the taxpayer vault. It is imperative for Congress to explicitly limit the authority of the Federal Reserve. The Fed was not created to take over parts of the U.S. economy. Its authority must be limited and its officials must be held accountable for their actions,” says Barr.
“Capitalism involves losses as well as profits," Barr explains. "When government tries to insulate businesses and investors from paying for their mistakes, we all lose. In a Barr administration, there would be no more corporate bailouts or takeovers."
"The days of loss-free capitalism would be over," Barr notes.
Libertarian Party presidential candidate Bob Barr represented the 7th District of Georgia in the U. S. House of Representatives from 1995 to 2003.
The Libertarian Party is America's third largest political party, founded in 1971 as an alternative to the two main political parties. You can find more information on the Libertarian Party by visiting www.LP.org. The Libertarian Party proudly stands for smaller government, lower taxes and more freedom.