ISSUE: Congress’ approval of finance plan

OUR VIEW: Despite concerns, Congress had no choice but to act 

Gov. Mark Sanford makes the case on this page today that the response to the financial crisis continues a pattern of growing the federal government’s scope and control.

He argues that the federal “bailout” or “rescue” plan that will cost three-quarter of a trillion dollars defies the system that makes this country work. He asks will there be a bailout every time private enterprise gets in trouble?

As much as the governor makes a strong point about allowing the U.S. system (where failure is a part of the capitalism) to work, he was not on the hot seat in Washington, where the consensus was that government had to act to stabilize credit markets. Even now, there is great concern about how long it will take for some of the money to make its way into the system and have the desired impact.

All six of South Carolina’s House members voted Friday for the financial package, including Congressman Gresham Barrett who voted against a defeated plan days before.

Certainly no advocate of big government, 2nd District Congressman Joe Wilson said, “From the beginning, Congress was delivered a flawed proposal. The initial Paulson plan lacked sufficient transparency, accountability and protections for taxpayers. I was proud to stand with many of my colleagues as we worked to improve this legislation and keep our word to the citizens we represent. They sent us here to make these tough decisions.”

And across the aisle, House Democratic Whip James Clyburn said, “First, I am hopeful that we have come a long way in restoring confidence in our markets, and, second, I am hopeful that we have restored credibility and confidence in Congress and in our economic system.”

They make the case that taxpayers are being afforded protections:

* An increase in the FDIC insurance cap from $100,000 to $250,000.

* An alternative insurance program so Wall Street pays to rebuild its own credit.

* Alternative Minimum Tax relief that will protect 25 million middle-class families from paying higher taxes.*

No golden parachutes for Wall Street executives.

* An evaluation of accounting rules to ensure the debts and assets of companies are accurately valued.

“We are hopeful that this legislation will help businesses that are beginning to have trouble getting a line of credit to make payroll or to stock their shelves,” Clyburn said, praising the bipartisan support for the plan that he says is no bailout. “This bill was presented to us under a misnomer -- ‘bailout’ is not an accurate way to describe this package. With the improvements made ... I think that we have come up with a piece of legislation that addresses concerns not just on Wall Street, but on Broad Street, where all the automobile dealers are located in my home town, on Walker Street, where I grew up, and on Liberty Street where the beauty and barber shops are.”

Clyburn reminds that people right here at home are being hit hard, watching 401(k) investment plans lose up to half their value. There is great uncertainty about the economic future -- and that continues to be reflected in the markets. Still, there is no way Congress could sit idly by and do nothing to address the situation.

And neither should the leaders step back now and consider their jobs done.

As Wilson stated after the vote: “Make no mistake, this legislation does not provide all of the reforms that are necessary to cease the bad lending and irresponsible borrowing practices that brought our economy to this fragile point. The hard work Congress must do to fix the root causes of our economic crisis is more important than what we have done here today. There is much more that demands our attention and the American people will not and should not accept anything less.”

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