“America Cannot Afford to Fund a Global TARP”
Washington, DC – Rep. Cathy McMorris Rodgers (R-WA), Vice Chair of the House Republican Conference, announced her strong opposition to news reports that the International Monetary Fund would spend $321 billion to help bailout debt-ridden European countries such as Greece, Portugal, and Spain. The United States is the largest contributor to the IMF, and therefore, under this plan, tens of billions of U.S. tax dollars would be funneled to Europe to help prop up failed socialist policies.
“At a time when America is experiencing its worst economy in 30 years and is weighed down by a $1.4 trillion deficit, U.S. taxpayers should not be forced to bailout Europe,” said Rep. McMorris Rodgers. “In many ways, the countries which make up the European Union are comparable to the states within the U.S. The United States is not asking Europe to bailout California, New York, and New Jersey. Europe needs to make the tough choices that Governors and Mayors all across America are making right now. By aiding a European bailout, we are making it less likely that our friends in Europe will pass the fiscal reforms that are necessary for long-term growth.”
“The Obama Administration should publicly oppose this ‘Global TARP’ and work with other members of the IMF to defeat it.” As the leading vote holder on the IMF, the U.S. wields the largest amount of say in determinations made by the IMF. While the U.S. cannot unilaterally block the European bailout loan request, the U.S. can recruit enough nations to achieve the majority vote that would be necessary to defeat it.
“Those who opposed U.S. participation in the $145 billion of Greece were correct in assuming this would eventually lead to a costlier bailout of Europe, and the final tab will probably exceed $321 billion,” said Rep. McMorris Rodgers. “The Obama Administration needs to stop taking America down this path which may end up costing hundreds of billions of dollars.”
On March 24, 2010, Rep. McMorris Rodgers became the first Member of Congress to oppose using U.S. tax dollars for a bailout of Greece. In an April 29, 2010 press release, she stated, “The Obama Administration needs to understand that bailing out Greece will not solve Greece’s problems; it will only create a moral hazard that gets America more involved in the gathering storm of European bailouts.”