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Mt Airy News - October 1, 2008 

By Tom Joyce

With legislators in Washington regrouping today after taking Tuesday off for a Jewish holiday, Surry County’s congressional representative is seeking “superior alternatives” to a bailout plan she voted against Monday.

“I voted against this bill because I am very concerned about the unprecedented direction that this economic-recovery package would take our country,” said Fifth District Rep. Virginia Foxx.

Foxx was among 133 House Republicans who cast “no” votes for the $700 billion proposal backed by President George Bush. Only 65 GOP representatives favored the plan, which was supported by House Democrats 140-95. The overall vote was 228-205, which meant that the measure would have passed had 12 lawmakers switched their votes.

All six Republican House members from North Carolina helped defeat the bailout package, joined by three of the state’s seven Democratic representatives. The only four North Carolina congressmen supporting the plan were David Price of Chapel Hill, Brad Miller of Raleigh, Mel Watt of Charlotte and Bob Etheridge of Lillington.

Foxx said her negative vote reflected fears about how the legislation would have affected average Americans.

“This plan put taxpayers, their children and their grandchildren on the hook for the bad decisions of Wall Street and government-sponsored enterprises,” she said. “Taxpayers deserve better.

“The people of Northwest North Carolina clearly expressed their outrage over this proposal,” Foxx added. Legislative offices of federal lawmakers have been bombarded by calls from constituents in the past week concerned that the bill was too lenient on Wall Street interests while placing a heavy burden on innocent citizens.

“This bill was another massive government intervention into America’s economy,” Foxx continued. “ It would have fundamentally changed our marketplace by rewarding financial companies that made bad decisions and placing those who exercised prudence at a serious disadvantage. And it would have done all this with the tax dollars of hardworking North Carolinians.”

The Next Step

With Monday’s defeat triggering a downturn in the stock market, congressional leaders vowed to continue working toward a solution this week. Foxx is hoping that any revamped proposal will more effectively deal with “the real problem.”

“This bill did not adequately address the underlying causes of our current financial crisis,” the legislator from Watauga County said. “Freddie Mac and Fannie Mae helped lead the subprime stampede that contributed to today’s crisis. They must be dramatically reformed.”

Judging by the effects of the hundreds of billions of taxpayer dollars already spent bailing out insolvent and irresponsible financial entities just this year serves as any guide, Foxx said that the plan considered Monday would not have worked. Instead, it would have aggravated the “underlying economic problems.”

However, whether such concerns will be reflected in newly proposed legislation remains to be seen. “There are superior alternatives that protect taxpayers and preserve our economic system,” Foxx added, “but, unfortunately, the administration and those in charge of Congress are not willing to consider them. I and members on both sides of the aisle have pleaded with those in charge to consider these alternatives, but they refuse.”

Foxx indicated that she is still keeping an open mind, but that any plan considered must satisfy a fundamental requirement.

“Our country is facing an historic economic challenge that requires action on the part of Congress. Our main objective in confronting this challenge should be putting our country first — which ultimately means taxpayers and future generations,” the area representative said.

“Congress must protect American citizens who have played by the rules and not do long-term harm to the values we hold dear.”