Monday, December 1, 2008

Byrd and Reid's Fairy Tales

Stimulus packages are not in themselves bad. Sometimes they can jump start faltering economies. When we consider them, we need to base the decision of whether or not to use them on hard facts. Senate Majority Leader Harry Reid and Senator Byrd issued a joint statement defending their $13.5 billion stimulus package. It claims that the package will produce 635,000 new jobs.

That is pretty astounding but according to the Heritage Foundation and the Washington Examiner, these numbers do not add up. The numbers are based upon a Department of Transportation study that itself claims that such numbers are likely false. The story is linked below.

Stimulus is fine and sometimes necessary, but let us have the facts first before we spend.

Congresswoman Shelley Moore Capito was asking the same hard questions of auto executives this week. She asked them to prove the necessity of a bailout package when they had just received a $25 billion loan from the Department of Energy. Capito also pondered why some sectors of the economy received help and others did not, citing the fact that a number of West Virginia firms had gone out of business with no offer of help whatsoever. Her point was that we need our automakers, but we also need assurances that they will make the changes necessary to compete in the long term.

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