Stimulus loans versus grants
Word from DC is that the GOP is calling for making the stimulus package a loan to the States rather than grants because they feel it would make the States spend the money more wisely. Senate Minority leader Mitch McConnell (R-KY)
has proposed that if President-Elect Obama wants to stimulate the economy quickly then he should sign the omnibus bill that was recently passed by both houses. The Senator’s suggestion is a good one, at least on passing the omnibus bill (and Bush should sign it rather than wait for Obama to begin his term in office), but it’s not nearly enough to stimulate the worsening economy. The economic downfall, caused by the bad economic policies of his own party, needs to have the recent bailout money for Wall Street diverted to Main Street in the form of grants, not loans, to many of the small communities that could use that money to rebuild roads, improve water and sewer systems and work on other infrastructure improvements. Mr. McConnell doesn’t seem to realize that making this money a loan would require voter approval because taxes would have to be increased in order to provide the funds to repay the loans. Asking permission from the voters to issue Bonds is precisely what Island Lake will have to do in order to build a new Police Department and to refurbish village hall. Grants from the Federal Government would certainly be a whole lot better. While this plan to sell bonds to fund the refurbishing is needed and it will provide jobs, it is asking people to dig into their pockets a little deeper at a rather bad time. Mr. McConnell doesn’t seem to realize that his bad policies of the past 8 years have caused the problems we have today. Those policies of tax breaks and overspending have put this nation in the spot of having to make some tough choices. Let’s not exasperate the situation further by demanding that Main Street repay a loan while Wall Street gets a bailout.
