Like most Missourians, I am downright angry that we find ourselves considering an economic rescue bill.  But, sadly, the economic crisis we face is real and it must be addressed head on.  Doing nothing is not an option.  The consequences of inaction would be dire for America’s economic and national security and for the Show-Me State residents I am privileged to represent.

As Chairman of the House Armed Services Committee, I study national security issues a great deal.  America is the world’s indispensable nation.  To remain so, we must utilize all elements of national power – military, diplomatic, and economic.

If our economy were to fail, it would undercut America’s military and diplomatic strength and make it far more difficult to properly address international challenges.  And, for the American people, an economic collapse would imperil jobs, savings, farms, and small businesses.

To confront the economic challenge, bold action is needed now.  At the request of the President of the United States, Republicans and Democrats in Congress built consensus around and approved a bipartisan plan to stabilize the financial market.

The plan is not a ‘bailout’ or a blank check to Wall Street tycoons.  Rather, it is designed to ensure that every day Americans are not unfairly wrapped up in the mess created by Wall Street’s greed and to reduce the risk of catastrophic economic failure.

The bipartisan legislation authorizes the federal government to buy, hold, and sell financial assets, allowing liquidity to return to the market and shoring up credit for everyone.  It puts taxpayers first, granting them ownership stake and profit-making opportunities with participating companies.  It allows taxpayers to be first in line to recover assets if a participating company fails.  And, importantly, it would have Wall Street firms repay taxpayers in full for the cost of the new federal program if it is losing money in five years.

The bill also limits excessive compensation packages and so-called ‘golden parachutes’ for company executives.  It puts in place tough and extensive reporting and oversight requirements.  It helps prevent home foreclosures from occurring in the first place, addresses the unique needs of small town banks, raises FDIC insurance coverage from $100,000 to $250,000, and provides tax relief to help stimulate economic activity.

While I supported the economic rescue bill because it is in the best interest of my Congressional District, State, and Nation, it should not be seen as a silver bullet that will eliminate all threats to the economy.  Congress must continue examining the economic turmoil we are facing and consider additional legislative solutions to it, including tougher regulations to ensure this never happens again.

This entry was posted on Monday, October 6th, 2008 at 2:16 pm and is filed under Politics, Economy/Budget .