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June 25, 2010

Crony capitalism and corporate welfare: Is this $30 billion worth of corruption?

Note: DownsizeDC.org President Jim Babka is on the Jerry Hughes Show today with guest host Scott Allen. Among the topics discussed will be the DISCLOSE Act. Details here.

Do mere politicians really know how much credit should be given to small businesses? They sure seem to think so.

The House voted to pass something called the “Small Business Lending Act of 2010” on June 17th. This bill will expand the national debt by $30 billion in an effort to encourage more lending to small businesses.

If you don’t think it’s wise for the federal government to borrow $30 billion so that small businesses can take on more debt, please tell your elected representatives to kill this bill.

You can borrow from or copy my letter to Congress . . .

I suggest you start cutting spending by voting down the “Small Business Lending Fund Act of 2010.” This bill would permit the Treasury Department to invest up to $30 billion in financial institutions, like community banks, with the intention of expanding the availability of credit to small businesses.

* This is corporate welfare
* This is crony capitalism
* This is inherently corrupt

This bill also makes it quite clear that you guys have failed to learn anything from the recent boom and bust in housing. Pumping up credit beyond its natural free market level is a recipe for disaster, but that’s exactly what this ill advised bill intends to do.

It’s bad enough that the House has already voted to pass this bill 241 to 182, but that doesn’t mean that the Senate has to duplicate the House’s mistake. Kill this bill. And if the Senate passes it anyway, try again when the final version comes back for a vote in both chambers. This is $30 billion that we do not need to add to the national debt.

END LETTER

You can send your letter to Congress using DownsizeDC.org’s Educate the Powerful System.

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Jim Babka
President
DownsizeDC.org, Inc.

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