The Latest Bailout: An Update

Well, it seems as though Harry Reid and Nancy Pelosi are not the only ones tuning out the American public (see previous post). In response to Sen. John McCain's outspoken opposition to the new farm bill -- which he rightly derides for being a product of this Congress' continual wasteful spending -- Democratic presidential not-so-hopeful Sen. Hillary Clinton responded with this gem, courtesy of the AP:

"When Bear Stearns needed assistance, we stepped in with a $30 billion package. But when our farmers need help, all they get from Senator McCain and President Bush is a veto threat"

"Need help", huh? Yea, it's a real shame that farm income has risen only 56% over the past two years. Sure, what's $300 billion dollars to American taxpayers. It's not like they are facing higher food prices or anything...oh wait.

To compare Bear Stearns to the farm bill is just ludicrous. In Bear's case, the Fed was faced with an imminent systematic crisis to the financial markets that threatened to shut down Wall Street overnight. While it was certainly unprecedented, the $30 billion move to rescue Bear was worth it, given the ramifications of a collapse and the immediacy of the threat.

As for the farm bill, their is neither an immediate threat to American agriculture nor any extensive ramifications for withholding subsidies. A permanent disaster-relief fund that is added to annually can provide the means to meet any systematic threat to agricultural when and if it arises. The money should be there for when farmers need it, and only when they need it. Throwing unwarranted subsidies at thriving commodities for another five years is just plain wasteful. About as wasteful, in fact, as all that money continuing to be spent by Hillary Clinton's dying, debt-laden campaign.