It’s a $700 billion plan that is supposed to serve as a lifesaver for the failing American economy. Congress is set to pass a law that has been championed as not a ‘bailout’, but a ‘buy in’ to the private financial market.
In a move that was met with apprehension by both congress and voters, the government was initially supposed to lend the private sector money to avoid bankruptcy of some of Wall Street’s most reputable companies. But once the law was funneled through the halls of the Senate and the House it transformed into more of an investment than a loan.
Congress insists they should have more control over the money that the White House requested. That sounds fair in theory, but congress forgot one important element-It’s not their money.
A significant portion of that $700 billion contribution comes from taxpayers, some of who have not made a conscious decision to invest in the financial market. Using taxpayer money to buy into Wall Street will make the general public a shareholder.
The deal could be costly if it fails, leaving taxpayers with the unenviable predicament of dealing with a repeat of the Great Depression. If the move is successful, the government benefits, not the investors.
Should the government investment be profitable, it should be disbursed publicly. The White House should not enjoy such autonomy without having to account for the use of taxpayer dollars.
The economy is struggling, and any measure to fix it should be taken as long as it is executed in a fair and responsible manner
Akeem Anderson for the editorial board.