Think $700 billion is a lot?
October 1, 2008 | By Nathaniel Ward
On Monday, the House of Representatives voted to block the $700 billion package to bail out the struggling financial sector. The Senate is expected to consider similar legislation Wednesday.
But even this staggering cost—and the $140 billion already spent to bail out AIG, Bear Stearns, Fannie Mae and Freddie Mac—pales in comparison to the massive bill taxpayers will face for runaway spending on entitlement programs.
A new Heritage Foundation graphic sent to news media demonstrates that this $840 billion is just a drop in the bucket compared to the long-term liabilities from Medicare, Medicaid and Social Security.
"Together, these programs hold unfunded obligations totaling $41 trillion - 60 times larger than the proposed Wall Street bailout," Heritage's Brian Riedl writes in the San Francisco Chronicle.
This is a real crisis we face, Riedl explains. "Imagine a taxpayer bailout even larger than what's proposed for Wall Street. Now imagine it recurring every year in perpetuity. That's our fiscal future unless we fundamentally reform these unsustainable entitlement programs."
Heritage experts explain the financial crisis
The media turned to the experts at Heritage Foundation to get prompt analysis of the bailout and the consequences of Wall Street's financial problems. Here are just a few of our recent television appearances on the issue:
Ensuring Heritage remains a permanent voice
Two weeks ago, The Heritage Foundation rededicated its headquarters building, located a stone's throw from the Capitol in Washington, D.C.
In his remarks at the ribbon-cutting ceremony, Heritage President Ed Feulner explained what the revamped Heritage headquarters means. It's a reminder to the lawmakers across the street in the Congress that "Heritage is a permanent institution on Capitol Hill entrenching itself for a long fight over the war of ideas."
We opened our headquarters building in 1983, giving conservatives a permanent voice on Capitol Hill. The new renovations ensure we will remain a voice for common-sense ideas for decades to come.
Heritage Trustee Midge Decter, who cut the ribbon to open the headquarters in 1983, did the honors again in 2008.
— David Talbot
Heritage takes First Principles to Ann Arbor
On Tuesday, The Heritage Foundation held its second First Principles Symposium on the campus of the University of Michigan, part of our ongoing efforts to raise the profile of the nation's founding principles on college campuses.
Speakers included Heritage experts Matthew Spalding and Robert Rector, historian Victor Davis Hanson and Heritage Trustee and Hillsdale College President Larry Arnn. Also on the agenda: Mackinac Center President Joe Lehman, Jay Richards from the Acton Institute and Carl Cohen from the University of Michigan Department of Philosophy.
- Watch the video of Jonah Goldberg speaking at the first Symposium at UCLA
- Watch the video of Hugh Hewitt speaking at the first Symposium at UCLA
Other Heritage work of note
- Protect America and American Leadership. Last week, Afghanistan's Minister of Defense, General Abdul Rahim Wardak, spoke in Heritage's Lehrman Auditorium about the security situation in his country.
- First Principles. In the latest analysis from Heritage's Center for American Studies, Claremont Institute scholar Charles Kesler examines the diverging notions of rights seen in three revolutions: the English Glorious Revolution of 1688, the French Revolution, and the American Revolution.
- Energy and Environment. Heritage Foundation energy expert Nick Lorris asks an important question on Heritage's blog: "What's the story behind gas shortages?" Unsurprisingly, it comes down to supply and demand: consumers worried about energy shortages after recent hurricanes are buying more gas, drying up the supply. The solution? Governments should stop worrying about "gouging" and allow prices to rise: "Proper prices will restore order and two weeks or less all of the Gulf Coast refineries and pipelines should be in working order - pumping out supply and reducing prices. And that's the beauty of the market."
In other news
- Following the release of a 358-page report, a special prosecutor will investigate whether nine U.S. attorneys were improperly fired and whether criminal charges are warranted.
- In order to maintain their tax-exempt status under federal law, churches must refrain from endorsing political candidates. As part of an effort to force the courts to review the regulation, 33 pastors challenged the rule last Sunday by endorsing candidates.
- The New York Sun, an upstart competitor to the liberal New York Times, has closed up shop after six-and-a-half years.
- A Nobel Prize jurist says Americans are "too insular" to receive the famed literature award.
- New York City mayor Michael Bloomberg is reported to be seeking a third term as mayor. Current law limits him to two terms.
- A British study calls for government food rationing—not because of any shortage but as part of the latest misguided scheme to control global warming.
Coming up at Heritage
To attend these or any other events at Heritage please RSVP at Heritage's website. Or you can view these events live online. All times are Eastern.
- On Thursday, October 2 at 1:00 p.m., Kenneth Wainstein, Assistant to the President for Homeland Security and Counterterrorism, will discuss the Bush administration's efforts to combat terrorism and what must be done to defeat future threats.
- On Wednesday, October 8 at 2:00 p.m., a panel of experts looks at China's recent successes in space and explores whether America is losing this new space race.
Nathaniel Ward is the Editor of MyHeritage.org—a website for members and supporters of The Heritage Foundation. David Talbot contributed to this report.
