Republicans Block Infrastructure Spending Amendments
By Justin Gardner | Related entries in Barack, Democrats, Economy, Legislation, RepublicansThey ask for more of it and then they block it?
Who’s playing politics again?
WASHINGTON – Senate Republicans on Tuesday blocked Democrats from adding $25 billion for highways, mass transit, and water projects to President Barack Obama’s economic recovery program.Already unhappy over the size of the measure, Republicans insisted additional infrastructure projects be paid for with cuts elsewhere in the bill.
But the Democratic amendment garnered 58 votes, just shy of the supermajority needed under Senate budget rules, and many more efforts to increase the measure’s size are sure to follow.
I agree that cutting things that appear unnecessary out of the bill is fine, but Republicans need to fill them in with things other than tax cuts. Because if that’s all Republicans keep pushing, Obama has every reason to ignore them.
So what’s their alternative plan?
Well, instead of allowing folks to readjust their existing mortgages, Republicans want to incent people to buy homes…
Officials said the GOP was uniting behind a proposal designed to give banks an incentive to make loans at rates currently estimated at 4 percent to 4.5 percent. Fannie Mae and Freddie Mac, which were seized by the federal government in September, would be required to purchase the mortgages once banks have made them to consumers.Officials said loans to creditworthy borrowers on primary residences with a mortgage of up to $625,000 would qualify, including those seeking to refinance their current loans.
Separately, Republican officials said they intended to press for a $15,000 tax credit for home buyers through the end of the year. Current law permits a $7,500 tax break and limits it to first-time home buyers.
Sorry, but isn’t this the same practice that Republicans kept hammering Dems on why we got into the sub-prime mess in the first place?
And they think doubling tax cuts to have more folks go hundreds of thousands of dollars into debt will be better for the economy than targeted investment on infrastructure?
How in the world is that more stimulative?
And to that point, Governors on both sides of the aisles seem to be fully behind the current stimulus package as is…
Nineteen Democratic and Republican governors, meanwhile, cited frozen credit markets and rising unemployment in urging lawmakers to resolve their differences and asking Obama to sign the bill as soon as it reaches his desk. The governors said the money it provides for public education, health care and rebuilding the nation’s infrastructure will create and preserve jobs while making a sound investment in the country’s long-term economic interests.“While we all believe in the importance of free markets, we believe that the markets today need stimulating,” the governors told Obama in a letter dated Monday. Among the signers are Democrats Deval Patrick of Massachusetts and Tim Kaine of Virginia, and Republicans Arnold Schwarzenegger of California and Charlie Crist of Florida.
More as it develops…
This entry was posted on Tuesday, February 3rd, 2009 and is filed under Barack, Democrats, Economy, Legislation, Republicans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
February 3rd, 2009 at 4:57 pm
I think the key is the term “creditworthy” borrowers.
That is the difference between the lending practiced that got us into the subprime mess and the one the Republicans proposed.
People with “Subprime” loans are the ones who did not qualify for conventional mortgages – the ones who borrowed more than they could afford.
I’m all for infrastructure spending, as it is necessary for continued prosperity. But don’t claim it’s for “emergency economic stimulus”…it’ll take several years for a bulk of that money to turn into jobs. It will have no short-term affect on the economy or unemployment rates. Long term, yes. but not in the immediate future.
February 3rd, 2009 at 5:23 pm
I agree with Rich, but credit-worthiness is not an excuse for market interference– and let not forget that “sub-prime” was just re-catagorized with an artificial credit-worthy ratings. It would be well-advised for the government to stay out of this painful correction, particularly in housing,as not to enlongate it.
On spending, can someone direct me to the part of the bill that builds an enduring/strong infastructure (in the form of tariffs or other) for the Louisiana Coastal Wetland. It may be there but I can’t really find it. It seems to be me that I my Senators and representatives should be able to vote on individual projects, so that I as a voter can determine their level of stupidity or intelligence. I for one would not be opposed to the aforement infastructure project. I believe that it would probably pay for itself, if there was efficient oversight.
February 3rd, 2009 at 7:00 pm
Of course it’s interesting that the Republicans included in their list of wasteful projects construction that while it is not infrastructure would still provide good jobs for Americans.
February 3rd, 2009 at 9:06 pm
Rich,
Actually, a great many subprime loans were granted to people who would qualify for conventional loans–I’ve read as high as 60 percent (granted, that 60 percent number is older).
The problem is that many of these people took subprime loans because they didn’t know any better. Lenders operating in an unregulated industry sold them as lower cost alternatives without mentioning that these were adjustable rate mortgages that could dramatically increase over the term. Lenders didn’t care because they were easy to sell and they could package them easily with other loans. Borrowers thought they were getting a deal or they just weren’t savvy enough to understand the risks.
If bankers and mortgage lenders had been regulated better and had they an interest in anything other than a quick buck, many subprime people would be in conventional 30 year mortgages today and we wouldn’t be in nearly the mess we are now.
And so help me God if any one launches into a nonsensical diatribe about the Community Reinvestment Act I am driving over to their house and spraying Cheeze Whiz all over their sofa……