Thursday, October 2, 2008

Loss of Short Term Memory

I have to admit, I was one of those that was a little miffed about the Wall Street bailout plan. The idea that $700 billion would go to big business and leave regular folks in the cold struck me wrong. I supported it, but I didn't like it.

Then came some facts. The bailout does not mean grants, but loans. Banks will have to pay this money back. In addition, they face increased government regulation of their practices. It's a lot like when you are a teenager and either crash a car or get a ticket. Your parents may help, but you will have to pay it back in some way. Most definitely your activities will be curtailed as well.

What those (and me too, I admit) who criticize the plan's big business focus forget is that Main Street already got help. The tax rebates were not loans, they did not come with any restrictions on how they were spent, and they will not bring restrictions on how Americans decide how to spend in the future. The tax rebate checks benefited the poor, but not the people with higher incomes. Yes, those people got checks as well, but several hundred dollars is much more vital to a poor family than one making six figures.

I cannot fathom why the tax rebate has not been brought up to counter those who want to make this a class warfare issue. Apparently even the media in this country has lost some short term memory.

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