Don’t confuse “Bailout” with “Stimulus”

Treasury Secretary (and tax cheat slash hypocrite) Timothy Geithner tackles five myths about TARP and for the most part he’s right. TARP, the Troubled Asset Relief Program signed by Bush in 2008 to save the banks has not been the disaster that many on the right and left claimed.

Michael Medved notes why as he cautions Don’t Confuse “Bailout” With “Stimulus” by noting that TARP worked because is demanded a payback. While both TARP and the Stimulus were opposed by the Tea Party activists, TARP is shaping up to be a total success while the Stimulus has so far been a total failure and has no sign of getting better.

Two years after it began, the controversial TARP program—the bailout of the financial system—concludes operations with much-better-than expected results. Most money invested in the rescue has been repaid, often with interest: of the $700 billion originally authorized, taxpayers remain on the hook for less than $66 billion, according to the Treasury Department.

This shows the Bush Bailout starkly contrasting with Obama’s Stimulus, which authorized $864 billion in spending, with no pay back. The stimulus permanently shifted money from private sector to government, while TARP temporarily transferred funds from public to private sector. TARP was also bipartisan: most Congressional Republicans supported it, while the stimulus drew united GOP opposition from 214 of 217 Republicans then in Congress.

Short term loans to save private businesses may be debatable but long-term explosions of spending to grow government are always disastrous.


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