Peterson statement on stimulus package

“In this difficult economy, many in Congress are rushing to write and pass another massive federal spending bill. In my view, what we’re considering will not solve our problems, and may in fact make matters worse.

“Had this stimulus bill been limited only to programs directly resulting in job creation and infrastructure projects, and for unemployment compensation and food stamps, I might have felt comfortable voting for it. However, increasing the price tag on this massive package to include tax giveaways and additional spending on programs that have little or nothing to do with economic development is the wrong way to do this.

“Every dollar added to this bill will have to be borrowed from countries like China and Japan , because we don’t have the money to pay for it ourselves. We will increase the national debt and send the bill to our children and grandchildren. This is what we’ve been doing for the last eight years and it’s got to stop. At some point, this global recession is likely to dry up the credit we’re relying on to finance these programs, and I’m afraid we will see skyrocketing interest rates that will make our economic situation even worse.

“While I understand the desire for a quick fix, I cannot support those in Congress who are rushing to meet an artificial deadline that will result in more unrestrained spending in the hope that it will solve all our problems. We should be taking time to ensure thoughtful and carefully targeted allocation of the public’s money. “

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