H.R. 1424, the Emergency Economic Stabilization Act of 2008.
opinion Essay
1998 words
H.R. 1424, the Emergency Economic Stabilization Act of 2008.
In the wake of the United States 2008 financial crisis, the government became pressured to act and the federal government needed a way to help. In late 2008 HR1424, commonly known as the Emergency Economic Stabilization act, was proposed to congress, and signed by president bush. This legislation was a way to remove the burden from banks, whom during the mortgage crisis, came strained on resources and was not able to keep lending as their clients fell victim to foreclosure. This bill’s intention was to take on bad loans and other assets so the bank could continue lending as normal. This legislation displays and example of top down government where government, supported by interest groups and PAcC’s, create laws for their own personal interests rather than the peoples need for such laws.
Prior to the passage of HR 1424 in October, There was a bill entitled HR 3997. The original proposal was submitted to the the House Representatives with the purpose of gaining the authority to purchase bad assets, reducing uncertainty regarding the worth of the remaining assets, and restoring confidence in the credit markets (OpenCongress) This bill failed to gain any momentum and failed passage by a 205 - 228 margin on September 2008. Its failure seemed to be more of a question of incentives over morals. Less than one month after the failure of HR 3997 to gain momentum, a similar bill was written and presented. HR1424, also known as the Emergency Economic Stabilization Act of 2008.Completely rewrote the previous bill and was introduced by Patrick Kennedy of Rhode Island with 274 cosponsors. This time the bill was easily passed by a 263-171 vote. Where generally, the provisions of H...
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...mirez, Carlos D. "The $700 Billion Bailout: A Public-Choice Interpretation." Thesis. George Mason University, n.d. Print.
Skop, Jenna. "The Financial Bailout: An Examination of House Votes on the Emergency Economic Stabilization Act of 2008*." Xavier Journal of Politics 1 (2010): 1-12. Xavior.edu. Xavior University. Web.
"Summary of the Emergency Economic Stabilization Act of 2008." Washington Times. The Washington Times, 28 Sept. 2008. Web. 01 Dec. 2013.
United States. Congress. GPO. Emergency Economic Stabilization Act of 2008 and Other Related Tax Acts, H.R. 1424 Bill Texts, Joint Committee on Taxation Technical Explanations and House and Senate Report. New York, NY: Thomson Reuters/RIA, 2008. Print.
"U.S. Congress - H.R.3997 Heroes Earnings Assistance and Relief Tax Act of 2007." OpenCongress. OpenCongress.org, 29 Sept. 2008. Web. 03 Dec. 2013.
In this essay, the author
- Explains that the emergency economic stabilization act was proposed to congress and signed by president bush. it was a way to remove the burden from banks during the mortgage crisis.
- Explains that hr 3997 failed to gain momentum and was passed by a 205 - 228 margin on september 2008. the emergency economic stabilization act of 2008 rewrote the previous bill.
- Explains that h.r. 1424 gave authority to the federal government to buy troubled assets to provide economic security and to keep our economy afloat.
- Explains that the emergency economic stabilization act of 2008 was first proposed by united states secretary of the treasury henry paulson during the financial crisis of 2008.
- Explains that the treasury modified distressed loans to help american families from defaulting, which prevented foreclosures and attempted to keep the real estate market from crashing.
- Describes how the center for financial research and department of economics of george mason university investigated the possible connections of pac’s and other interest groups involved in the legislation.
- Explains the change in support after the failure of hr3997. the bill's voting turned from unsubstantial support to overwhelming support. jenna skop conducted a study comparing those who supported hr 1424 and campaign donations during the 2008 election cycle.
- Opines that shifting tax dollars to wall street is why they have stressed all along.
- Opines that kennedy and his 274 cosponsors would support this bill for his constituents if it weren't for the financial backing he had received from the banking firms.
- Analyzes how political campaigning with lobbyists and pacs reinforces thomas dye's theory of top down policy making.
- Opines that the emergency economic stabilization act has been altered and received added funding since its initial enactment, but it seems to have worked. top down policies tend to benefit those in power.
- Summarizes the washington post's "breakdown of the final bailout bill."
- Analyzes how the banking industry influenced the majority of lawmakers to pass a bill that would save them from the financial burden they were now experiencing.
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