State Debate: Financial rescue plan the least bad alternative

A 10/2 roundup of editorials in state papers

Compiled by Judie Kleinmaier  —  10/02/2008 9:33 am

Financial rescue plan the least bad alternative, says the Kenosha News.

The 133 Republicans and 95 Democrats who voted down the $700 billion bailout of the credit markets also succeeded in wiping out $1.2 trillion in shareholder value on U.S. markets as Wall Street had its worst day on Monday since the crash of 1987.

For those who voted against the bailout, their motive seems to have been naked political fear. Their constituents are overwhelmingly against the package -- in part because it has been badly explained and they decided now was no time for political courage.

Nobody is happy this has to be done but stability and liquidity have to be restored to the credit markets and this package in one form or another is the least bad alternative.

No-endorsement rule for churches sensible, says the Beloit Daily News.

Is the government violating free speech rights if it investigates instances in which a pastor is believed to be politicking from the pulpit?

The question is pertinent because a few pastors -- including one in West Bend -- have decided to test the point by openly advocating for political candidates. It is expected most of the pastors involved in the nationwide effort will be reported to the Internal Revenue Service. Federal laws giving churches tax-exempt status also prohibit political campaigning.

We agree with the law. Tax-exempt status is a form of subsidy which the citizens/taxpayers grant. Taxpayers providing such benefits should not find themselves forced to subsidize political advocacy.

Bailout for Big Three a mistake, says the Milwaukee Journal Sentinel.

What's another $25 billion among friends? Compared with $700 billion, it's chump change, right? Such appears to be the attitude in Washington after passage of a massive spending bill that includes $25 billion in low-interest government loans for General Motors Corp., Ford Motor Co. and Chrysler Corp. President Bush signed the bill Tuesday.

Let's be clear: There is little danger of the American economy falling into depression if any of the Big Three fail. It would be difficult if they ceased to exist, for their workers foremost and for the economy of Michigan and much of the upper Midwest, which relies on auto-related industries. But catastrophic to the nation as a whole? No. In fact, such a failure might well force the survivors to innovate more rapidly.

And the plan to bail out the Detroit automakers differs markedly from the U.S. Treasury's plan to buy up distressed securities from financial institutions. The Treasury's plan is based on a clear danger to the overall economy. Without the lubrication of credit, the gears of business cannot function, and there is reasonable fear that the economy will grind to a halt without government action. The risks simply aren't the same if the Big Three fail.

Compiled by Judie Kleinmaier  —  10/02/2008 9:33 am