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Congress
Rejects Auto Bailout
In my last email you were informed about an
upcoming vote in the House to bailout the auto industry. The
final bill, the Auto Industry Financing and Restructuring Act,
provided up to $14 billion for the auto industry. While that
number was reduced from the Big Three’s request for $34 billion,
$14 billion is still a lot of money—even in Washington. Let me
share with you several reasons why I could not and did not
support this bill.
I assure you no one wants to see the Big Three automakers fail.
The loss of these three automakers would be a tragic
circumstance for our economy. However, I ask the question that I
asked of the chairmen of the Big Three automakers: name three
industries that are not hurting in this economy that could not
be helped, sustained, and made more profitable by the infusion
of $14 billion? Their answer: stone cold silence at the witness
table.
Everyone in every industry is hurting in this economy. Why the
automakers? Why not the airlines? Why not the home builders? Why
not the restaurants and the hotels? Unfortunately, the auto
industry does not have a monopoly on economic misery. If the
purpose is to preserve jobs, why is the money not destined for
the small businesses of America?
As previously mentioned two week ago, 500,000 small businesses
that are employing an average of 10 workers will fail. Small
business is the job engine of America, but they are not being
considered for assistance merely because Congress has not heard
of them.
There is a better way. Indeed, it would be one thing if we knew
that this money would somehow solve the problem, but we do not.
Independent analysts in the auto industry tell us that if demand
does not pick up for the domestic auto industry, $14 billion,
$34 billion, $74 billion, or even $104 billion will not solve
the problem.
This bill was passed by the House, but the Senate failed to pass
the same legislation. However, as you have probably seen in
press reports this morning, President Bush has decided to use
funding from the Troubled Asset Relief Program (TARP) to bail
out the automakers. I am disappointed with this decision, and
prior to the announcement I sent a letter to President Bush
urging him not to expand the use of TARP funds, which were
intended to provide stability to the nation’s lending system, to
bailout the automakers. Another bailout at taxpayer expense is
not the answer. They must reorganize, reduce their labor costs,
and produce a product worthy of the American consumer’s
investment.
Texas Talk
Thank you for taking the time to respond to the last
e-newsletter with your thoughts and concerns. Although I do not
agree with every idea, your suggestions are thought provoking,
and I appreciate knowing your views on the issue. Here is some
of the feedback from 5th District residents:
“It is time to draw the line in the sand when it comes to
federal bailouts.” – Quade, Mesquite
“Concerning the auto bailout I believe they have to be helped
and the money needs to come out of the TARP money. I never felt
that the financial bailout was a good deal or was done properly
and not real impressed with the terms for the handouts and the
complete lack of transparency with the Federal Reserve dealings
with them.” – Johnny, Rowlett
Jeb Note: While I do not believe we should use the money
designed to stabilize the financial institutions, I do agree
that we need to increase the transparency and accountability
regarding the money being used from the Troubled Asset Relief
Program (TARP). I was recently appointed to serve on the
Congressional Oversight Panel, a five-member committee
responsible for monitoring the $700 billion TARP program. As a
member of the TARP panel, my top three goals are to ensure that
the program works, to ensure that decisions made are based on
merit and not political considerations and, most importantly, to
ensure that taxpayers are protected. I will keep you updated as
we learn more about the program.
“My husband and I own a suffering small business and would love
a bail out! But what does that accomplish? Ultimately a bailout
only does three destructive things to a free enterprise nation.
1) Decreases individual responsibility 2) increases government
dependency and 3) places a greater strain on an already
financially overextended government! I don't want anyone to
suffer, but we all are; we all will. And if we continue this
path of the bailouts, the suffering will ultimately only
increase in severity and duration.” – Cathy, Palestine
“I am against any bailout. I own three small businesses and
employ approximately 30 people, so I need fewer taxes, not more,
and a government that will support my small business so that I
can expand my small businesses and employ more people.” – Joel,
Dallas
Medicare Prescription Drug Plan’s Open Season
Medicare Prescription Drug Plan’s open season runs from November
15 - December 31, 2008. During this time, eligible individuals
can review their current plan, compare it with a list of their
medications, and see if it still fits their needs.
Seniors who would like additional information on changing their
prescription drug plans can contact my Dallas office at
214-349-9996 or Medicare at 1-800-MEDICARE (1-800-633-4227) or
visit www.medicare.gov.
Digital Television Conversion Occurs on February 17, 2009
On February 17, 2009, all television broadcasts will become
digital signals (instead of the traditional analog signals) and
the way many Americans without cable or satellite watch
television will change. If you currently have cable or a
satellite, you will not be affected. However, if you rely on an
antenna to watch television, you have several options to prepare
your home for the switch: purchase a DTV converter, purchase a
digital television, or subscribe to cable or satellite
television.
If you were unable to attend my forum on the DTV conversion in
June or if you have further questions, please visit www.dtv.gov
or call my Dallas office at 214-349-9996. |
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