With the president’s signature on the health care bill Tuesday, roughly 50 percent of the U.S. economy has fallen under the purview of the federal government.
The president can rightly say he has transformed America.
Since the inception of bailout nation in September of 2008 with passage of the $700 billion TARP bailout, the government takeover lollapalooza was under way.
President Obama fully embraced the $700 billion bailout plan during the first of his presidential debates with Sen. John McCain.
In December of 2008, President-elect Obama insisted that outgoing President George Bush release billions to create the Automobile Task Force for the purpose of preventing General Motors and Chrysler from filing for bankruptcy. Like most government interventions the billions spent on the auto companies did not prevent bankruptcy, but it did provide a gentler landing for the Unions who worked so hard to elect President Obama.
Banks were bailed out, and the Wall Street investment houses, including Goldman, et al, turned themselves into “banks” to be eligible for government subsidized TARP funds.
Soon the federal government turned its dividend paying shares into equity shares, and government became out right shareholders in America’s largest banks.
Next came the unholy bailout of AIG, America’s largest insurance company. A sponge of your tax money, AIG held toxic derivatives and has yet to right its ship.
The Federal Reserve bought copious reams of toxic commercial paper, and the Fed’s balance sheet backed by the American taxpayer forever changed.
Freddie and Fannie, the secondary mortgage buyers, were the center of the universe for the financial meltdown. Foolishly pursuing a policy of purchasing sub-standard loans, then repackaging those loans into mortgage backed securities, Fannie and Freddie greedily spread economic cancer throughout the financial world, exposing taxpayers to potentially trillions in losses. Fannie and Freddie should have been shuttered and placed into receivership, but Uncle Sam, ever the chump, couldn’t resist, and now owns 50 percent of America’s home mortgages.
Eager for more, the Obama administration consumed the student loan industry, completing that transaction with today’s signing of health care.
William Boyes, an economics professor at the W.P. Carey School of Business at Arizona State University estimated in July 2009 that in a span of 10 months time, the federal government owned or controlled businesses that generate about one-third of U.S. economic activity
But the brass ring of government-controlled health care still taunted the administration. One-sixth of the economy, the finest health care the world has ever known, was the long sought after prize of the political left.
Today they realized their dream. This morning with the signing of his name, President Obama completed the federal government takeover of health care. It is fitting on this momentous day we pause for a moment of silence and lament the passage of half of America’s economic freedom.
Congratulations Mr. President, you’re halfway there!
Rep. Michele Bachmann represents the 6th Congressional District of Minnesota.