Notes 1-14

Debate notes

Regulated Capitalism:

Negative-The American Dream is a nice house, a nice car and so forth, but when the economy begins to fail; who is there to help our American citizens. In order to keep our economy alive and save the value of the U.S. dollar the government must get involved. Actions such as the bailout are necessary to save the US economy. But without regulation how will we know if the money is going to the right place. At this stage in the bailout the government has failed to keep track of the funds. While U.S. citizens are suffering to save their houses. In order for a bailout to be successful the gov’t must distribute the money not only to the banks, but to the homeowners. Homeowners are among the groups that need money more, yet they are getting the short end of the stick only “40 billion of the 350 billion” has been allocated to the cause of foreclosed homes.

Affirmative-The American gov’t has proven it self inept when it comes to the bail out of big business. The 350 billion allocated and dispensed was hardly tracked by the gov’t and came with little regulation. According to the ny times “an oversight board recently issued a scathing report saying the treasury failed to track the money adequately.” The gov’t has failed to learn from its own mistakes and it is unjust to continue to fund such error with the taxes of the American people.

NY Times Jan. 13th “At Obama’s urging, Bush to seek rest of bailout funds” by David M. Herszenhorn:

“40 billion [of 350 billion] of the new money to be used for home foreclosure prevention efforts.”

“… 5 point plan ensuring the money would be used for lending or preventing further crises and not for ‘enriching shareholders and executives;”

Just b/c bailouts exist doesn’t mean that the money should be given loosely.
“…tough but sensible conditions that limit executive compensation until taxpayer money is paid back, bank dividend payments beyond de minimis amounts and put limits on buy backs and the acquisition of already financially strong companies.”