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Issues
Economic Stabilization Act
Economic Stabilization Act
Congressman Souder's Position
From the beginning of the debate regarding a bailout, I—along with my fellow Hoosiers—have been furious about the current financial circumstances. I have great disdain for the idea of spending tax-payer dollars to bailout Wall Street. My support for the Economic Stabilization Act, however, was based on the belief that failure to act would put our local employers, workers, and economy at much greater risk. I was unwilling to jeopardize the future of hard-working families and individuals who did nothing contribute to the current situation.
As the collapse of the toxic mortgage-backed securities market began to ripple through the economy, Congress had to act immediately. Credit has tightened and small businesses, farmers and home owners will be impacted if things continue to spiral downward. I hope in the paragraphs that follow I will be able to share some of my views that guided me through this difficult decision.
I strongly disagreed with several measures in the original administration proposal. I felt that Congress was being asked to write a blank check for Wall Street and the Treasury Department, and I fundamentally opposed this action. I was outraged by the idea that we would bail out the very people who had run their companies into the ground. I was appalled that we’d allow golden parachutes to remain intact and that CEOs who’d gambled and lost could walk away unharmed. As the Congressman responsible for the most manufacturing jobs in the nation, I knew that if our GM truck plant, manufactured housing companies, and others did not have access to credit they would suffer great losses. Thousands of jobs could be lost.
When the latest compromise was unveiled, I was still concerned with the idea of government intervention. However, despite my concerns, I believe this was the most practical solution presented by the Democrats. Below is a listing of the provisions that I feel will protect Hoosiers:
- Reduced taxpayer exposure. Rather than the $700 billion blank check requested, $250 billion will be available to the Treasury Secretary and additional funds beyond $350 billion will require Congressional action.
- Taxpayers recoup losses. If after 5 years, taxpayers have lost money on the asset purchase program, the President is required to submit a plan to Congress to recoup these losses from the firms that participated in the program.
- Caps executive compensation. Ensures that bad actors who contributed to this crisis are not rewarded with millions of dollars.
- Helps struggling homeowners. Mortgage entities are required to work with homeowners at risk of foreclosures, considering the actual value of the house.
The vote I cast in favor of the Economic Stabilization Act was one of the most difficult decisions I have ever had to make as a member of Congress. Despite much opposition, my job as the representative of northeast Indiana is to vote in the best interests of those I represent.
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