Story Created:
Oct 3, 2008 at 9:43 PM EST
Story Updated:
Oct 7, 2008 at 10:50 PM EST
SOUTH BEND — It was the moment millions of investors had been waiting for. On Friday, the highly anticipated Wall Street bailout became a done deal. But it comes at a cost: controversy over billions of dollars in pork barrel spending.
President Bush called Friday's vote on a financial rescue package "the right move" to help prevent the crisis on Wall Street from becoming a crisis in communities across the country. He quickly signed the $700 billion government bailout after the House approved it by a vote of 263 to 171.
Senators passed the bill by a 3 to 1 margin on Wednesday.
"Congress and the President had to do something," said Saint Mary's College Political Science Professor Sean Savage. "And something almost became anything. And doing anything was better than doing nothing."
Local congressmen Joe Donnelly, Mark Souder, and Fred Upton supported the bailout plan. Congressman Mike Pence voted against it. None one changed their votes from earlier this week.
On Wall Street, enthusiasm over the bailout bill, gave way to worries about obstacles still facing the economy, as the majors averages fell again.
But it wasn't just investors worried about the "rescue plan."
Some taxpayers are changing their tune too after learning what it took to get the bailout passed: loads of pork — and not the kind you eat.
Pork barrel "pet projects" and tax breaks from individual congressmen and senators included in the bailout bill add up to nearly $100 billion, and you won't believe where all that money is going.
Supporters of the bailout plan says it's a sign of hope for a drowning economy.
Critics say Congress went "hog wild" to do it — giving out tax breaks like it was a fire sale.
The rescue package include $2 million for wooden arrow manufacturers in Oregon.
Then there's the $148 million in tax breaks for companies that make wool, the $192 million for rum producers in the U.S. Virgin Islands and Puerto Rico, and $239 million to help fisherman in Alaska struggling to recover from the Exxon Valdez oil spill nearly 20 years ago.
There's $100 million included to help the owners of several car race tracks, and $478 million to assist those struggling film and television producers in Hollywood.
And that's just a drop in the $100 billion bucket.
Voters WSBT spoke with about the "pork" were, well, less than thrilled about the choices.
"I think it's stupid," said Sarah Lottes of South Bend. "[It's irresponsible], very. They just don't get it."
"It's just digging a bigger hole," said Samantha Morales of South Bend. "[It makes me frustrated], a lot."
"I think it's kind of ridiculous. I'm very upset. Our kids and grandkids are going to have to pay for all of this," said Russ Smith of Mishawaka.
In order to "cook up" a new solution, opponents of the bailout plan said it had to include some incentives to "sweeten the deal." Failure to pass a bailout would've been a recipe for disaster, said supporters.
"I joined the effort with a number of folks to try and strip out some of that junk — that pork that was added in the Senate. But, we didn't have the votes," said Rep. Fred Upton, (R-St. Joseph, MI). "The alternative of failing [to pass a rescue package] was not one many folks wanted to face again."
Experts say, that's nothing new.
"This is something that typically happens on a regular basis on a major trade bill, or on the annual federal budget bill," said Savage. "Some of these so-called pork barrel projects have been necessary to get their votes."
It's rare, though, experts say, to see this many projects pushed through all at once.
But with election day just a month away, some believe the only way some in the House could justify their votes of support for the plan would be to "bring home the bacon" in the form of a high profile local "pet project" or fund.
That boosted the bailout bill from 3 pages just 4 days ago to more than 400 pages by the time senators were done with it.
Supporters say the additions aren't all bad, because they include a new, higher cap on the amount the government will insure on your savings. The limit is now $250,000 per person; up from the previous level of $100,000.
It also offers new tax breaks for businesses trying to rebuild after Hurricane Ike, and supporters say it will help put the economy back on track.
Regardless of the reasons, for some, the "bailout bonuses" are the last straw.
Their support for a rescue plan will be on hold until, well, pigs fly.
Savage says what's "pork" to some may be "prime rib" to others. So, cutting out all pork spending may be somewhat unrealistic.
One way to avoid that problem, says Upton?
"Republican president or Democratic president, they ought to have a line item veto. And it ought to be, not only on spending, but also on tax provisions," he said.
Without a change, Upton says the pork will just keep piling up.