First, a typical mainstream media dose of pure horsecrap from the AP:
Republicans block small business lending bill
By STEPHEN OHLEMACHER; Associated Press Writer
Published: 07/29/10 2:13 pm | Updated: 07/29/10 4:14 pm
WASHINGTON – President Barack Obama’s election-year jobs agenda suffered a new setback Thursday when Senate Republicans blocked a bill creating a $30 billion government fund to help open up lending for credit-starved small businesses.
The fund would be available to community banks with less than $10 billion in assets to help them increase lending to small businesses. The bill would combine the fund with about $12 billion in tax breaks aimed at small businesses.
Democrats say banks should be able to use the lending fund to leverage up to $300 billion in loans, helping to loosen tight credit markets. Some Republicans, however, likened it to the unpopular bailout of the financial industry.
Democrats had wanted to pass the bill before Congress leaves town for summer vacation, but that won’t happen with the House scheduled to adjourn Friday. The Senate is in session for another week, but Senate Majority Leader Harry Reid said there would be no more votes until Monday.
And whose to blame for this despicable refusal to help small businesses, you ask? Republicans, out to cynically manipulate the issue and undermine the economy in order to score cheap political points for the November election.
How dare they? What kind of minions on evil are these Republicans?
Do the Republicans have a reason for their evilness? Not really. All they have, according to the Associated Press, is an ad hominem comparison to the financial bailout.
The only problem is, day in and day out, the mainstream media only gives the part of the story that contributes to its ideological agenda.
The Wall Street Journal manages to find the reasoning behind the Republican position that the Associated Press simply didn’t think you to know:
The bill authorizes Treasury to purchase up to $30 billion of stock in small, community banks across the country. The banks in turn would agree to issue as much as $300 billion in loans to small businesses that they wouldn’t otherwise lend to. You can bet that many businesses that get the loans will be engaged in not very profitable, but politically correct activities, such as diversity investing and renewable energy. Sound at all like subprime mortgage loans?
Here’s the best part: The whiz kids at the Congressional Budget Office and Joint Committee on Taxation estimate that this program will raise $1.1 billion for the federal government. So there really is a free lunch.
The assumption is that these banks will make such wise loans that they’ll make a bundle and the Treasury will get its money back in dividends on its preferred stock. But then why not have Treasury invest $100 billion to leverage $1 trillion in new loans? Or why not $2 trillion? If government-directed investment and lending can conjure such returns, the deficit should vanish in no time.
The false assumption here is that banks are reluctant to lend because they lack the capital. This ignores that small business lending is also down because the business demand for loans is weak. Businesses don’t typically expand when Washington is raising dividend, capital gains and personal income tax rates while piling on the new costs of ObamaCare and other regulations.
The tax cut in this bill will provide $12 billion in relief over 10 years. The tax increase that Mr. Obama favors for 2011 would raise what the Joint Committee on Taxation figures will be $600 billion of revenues, about half of which comes from the coffers of small business. So the tax hikes, which are permanent, are about 50 times larger than the tax cuts, which are temporary. And the Obama Administration wonders why some people think this President is antibusiness.
The title of that WSJ article is “Son of Tarp.” As in, the evil child of the evil and justifiably unpopular financial bailout.
So, yeah, Republicans liken this bill to the financial bailout. Because it pursues the exact same rationale that the financial bailout followed. Because it does the exact same things. And because it will lead to the exact same result.
But it wasn’t important for you to know why the Republicans might be right. All you needed to know, in the minds of the Associated Press, is that Obama and the Democrats are the party bringing “change,” “change” is clearly good (including, apparently, such “change” as shoving a nuclear bomb into your ear and then detonating it), and Republicans are cynically blocking “change.”
The biggest bottom line of all is the bottom line of the WSJ piece. The mainstream media wants to shout from the rooftops that Obama is giving $12 billion to help small businesses. But when they ought to be pointing out that Obama is actually taking away $300 billion from small businesses in the form of the giant tax increase when Obamacrats allow the tax cuts “for the rich” to expire, all you can hear is crickets chirping.
Obama is going to take fifty times more from small businesses in permanent taxes than he’s going to give them in temporary relief. And the mainstream propaganda is treating this rape of businesses like its some kind of gift from heaven.
That’s just the way the rodent media rolls.