February 8th, 2009
04:45 PM ET
5 years ago

Stimulus will lead to 'disaster,' Republican warns

WASHINGTON (CNN) - Leading Republicans warned Sunday that the Obama administration's $800 billion-plus economic stimulus effort will lead to what one called a "financial disaster."

"Everybody on the street in America understands that," said Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee. "This is not the right road to go. We'll pay dearly."

Shelby, of Alabama, told CNN's "State of the Union" that the package and efforts to shore up the struggling banking system will put the United States on "a road to financial disaster."

But Lawrence Summers, the head of the administration's National Economic Council, said Republicans have lost their credibility on the issue.

"Those who presided over the last eight years - the eight years that brought us to the point where we inherit trillions of dollars of deficit, an economy that's collapsing more rapidly than at any time in the last 50 years - don't seem to me in a strong position to lecture about the lessons of history," Summers told ABC's "This Week."

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soundoff (400 Responses)
  1. john

    no GOP rule was a disaster.....

    February 8, 2009 08:59 pm at 8:59 pm |
  2. Frank,FL

    How come we never heard from all these republicans last yr ,,when Bush was pushing his great plan,,,,,,,funny how that works,,,, i lost my job last aug ,, cant find anything yet,,,,shut the morons up,,,get this thing going,,,get this country moving in the right directions again,,,,,,,PLEASE

    February 8, 2009 09:00 pm at 9:00 pm |
  3. DJK

    Will the majority of our US politicians ever be able to put their country’s interest above their party’s interests? The two major US political parties have established such broad, extreme, and rigid platforms that our representatives feel they must ignore any common ground for the fear of attack by the extremists in their own party. This fear has left them impotent as it relates to the necessary art of compromise and leaves them only the option of attack.

    February 8, 2009 09:01 pm at 9:01 pm |
  4. Albo58

    Shelby is correct! We need to chunk this crap bill into the circular file and start over! This bill was tainted hard by Obey and Pelosi at birth and the senate failed to really improve upon it. Of course a lot of governors are all for it because it has tons of boondoggle money for these mis-managers. And yes, the lib Democrats (vs. the blue dogs) are really loving this grab bag of government give-aways, but the majority of Americans are starting to realize all the wasteful spending in it. Thus, the rookie president is desperately trying to scare people into signing up to it. Change we can never believe in nor tolerate!

    February 8, 2009 09:01 pm at 9:01 pm |
  5. Dedicated_Dad

    Idiots.

    DEMOCRAT policies caused the sub-prime (read:affirmative-action-lending) crisis, which caused the rest of the economy to cave.

    REPUBS tried to head this off ~5 years ago and were accused of "political lynching."

    Do your research – the vids are there for the watching on you-tube.
    See vid Lr1M1T2Y314 – and _MGT_cSi7Rs – on on youtube.

    Naturally, this comment will never see the light on the "moderated" CNN website – only repub-bashing posts are allowed...

    You guys DO know you can't hide the truth forever, right?

    DD

    February 8, 2009 09:01 pm at 9:01 pm |
  6. Lisa

    The republicans really need to get a book or two about the Great Depression, watch the History Channel or something. The fact that Herbert Hoover (Republican!) did NOTHING caused more problems – more banks closed, more people lost their jobs.

    I don't like the idea of a bunch of stupid greedy people – either those on Wall Street OR Main Street – getting bailed out, but it seems like we don't have a lot of choice unless we want to sit back like you suggest and watch our entire economy tank. I'm in a small house I can easily afford and not in danger of losing it. I have no debt, but this disaster affects me too....

    And for a history of that 10 Trillion in debt – try Googling it. There are tons of sites showing exactly which presidents caused the most debt (your idols Reagan and W) so ....where are your fiscal conservatives?

    February 8, 2009 09:03 pm at 9:03 pm |
  7. Obama - NOPE

    Thank god for the Republicans ! If not for them, the US would be on the fast track to Socialism. I hope the country as we know it can survive until 2010.

    February 8, 2009 09:06 pm at 9:06 pm |
  8. Meka

    PRIME EXAMPLE AS TO WHY WE NEED--–CONGRESS TERM LIMITS . . . 12 YEARS, NO RETIREMENT!

    February 8, 2009 09:06 pm at 9:06 pm |
  9. TDEM

    I would say to Shelby, McCain, and other repubs, feel so anti stimulus than don't have your states take any. There are plenty of states and citizens in the other states grateful for any help coming their way. You can sit self satisfied that the citizesn you represent did not get tainted by any stimulus (socialist) funding.

    February 8, 2009 09:08 pm at 9:08 pm |
  10. Ron , West Coast

    If there was ever a need for term limits, this is the time! Those old fools like senator Shelby are irrelavent for the 21st. century , and our terrible economic, and jobs loss situation.
    Senator Shelby, and the GOP would rather obtruct, and stonewall progress at every turn. The GOP had plenty of opportunity to address these economic problems when they controlled the senate, the house, and the presidency, but, they did`nt !!!! Back in October, the republicans were quick to answer Bush, and Paulsons pleas for 700 billion dollars for wall street, now is the time for them to come to the aid of the rest of us.
    The thinking of those republicrooks is to obstruct all efforts by our president, and the democratic congress to get our country back on track, so in 2010` they can go before the american public and say that the democrats have failed. Meaning that the dems should be voted out of the majority, and be replaced by them.
    Retire Senator Shelby, and let someone who put`s the country first, and their party second !!!!

    February 8, 2009 09:09 pm at 9:09 pm |
  11. Danny Corrigan

    Republican Stimulus Definitions:

    Waste – $20 million to re-sod the Capital Mall – I doubt the sod will be imported from China, laid by workers in India, or will have a Sod Company CEO that will bonus himself $10Mil and structure a $5Mil golden parachute before resigning a week before the company defaults on the job and declares bankruptcy. Instead, U.S. grown sod is cut and loaded by U.S. workers, loaded on the trucks of a U.S. owned trucking company, delivered by U.S. truck drivers to U.S laborers that will lay the sod. Lastly, the improved National Mall will draw not only U.S., but also Foreign Tourists who will come to Washington D.C. and not only circulate money in our economy, but actually add foreign funds to it. Result-Stimulus reaches not only the American workers involved in the project, but the businesses, charities and churches they support. Who will in turn recirculate the money over and over in our economy.

    Stimulus – Tax cuts for “Small Businesses”. The U.S. Governments of definition of “Small Business” includes companies that have as many as 1500 employees or make up to $34.5 million. I’M NOT KIDDING. Look it up. If they create new jobs in this country its money well spent. Of course if they use the money to send jobs to foreign countries, as the trend has been, they are legally spending their “stimulus” to make a few “have mores” a little richer and a whole lot of “have less” a little poorer. And the very same employees they are displacing are helping to pay them to do it. Result- Stimulus for a small number of people in this country who generally favor German Automobiles, Italian Suits and overseas vacations. Far more stimulus for foreign citizens who make between 50 cents and $1 and hour. Unfortunately they aren’t known to buy American or take U.S. vacations.

    February 8, 2009 09:12 pm at 9:12 pm |
  12. SOUTHERN HOTTIE

    Surprise, surprise.

    Another old, rich, obstructionist white Republican from the south.

    Why do they hate Americans?

    February 8, 2009 09:13 pm at 9:13 pm |
  13. Ken S

    GOP are pathetic, the ideas and policies have been tried and it has failed us miserably. GOP please shut up and let the DEMS clean up after your acts. GOP has nothing positive to contribute except political grandstanding.

    February 8, 2009 09:14 pm at 9:14 pm |
  14. rolly

    LET 'S TAKE A SECOND AND THINK WAS THIS THE SAME BUTT HEAD THAT VOTED YES FOR THE 700.00 BILLION DOLLAR.THAT STILL CAN'T TELL US WERE THE MONEY WENT OR WHO GOT THE BIGGEST SHARE. BUT I BET HE GOT SOME OF IT AND HIS GOOD OLD FRIENDS . DOES HE HAVE A BETTER PLAN .LET THE LITTLE PEOPLE INJOY .GET ON THE PLAN AND STOP YOU BULL .

    February 8, 2009 09:16 pm at 9:16 pm |
  15. Jon Randall Spradley

    Sen. Richard Shelby appears to have zero legitimacy with anyone that is intellecutally honest. The GOP was at the reins for 8-years and they brought this mighty nation's economy to its knees - with help from weak-kneed DEMS. Sen. Richard Shelby's warning have a hollow, tinny ring. Worse still, they feel utterly irrelevant at this point in time. The GOP has a lot of work to do - work they should have been doing for 8-years. Adios for now to the GOP - see you again when you get your act together.

    February 8, 2009 09:18 pm at 9:18 pm |
  16. Diane

    SENATOR SHELBY YOUR TIME HAS COME AND GONE.

    As a republican I am looking for new leadership in our party, from thoughtful, open-minded politicians who think in terms of the whole rather than the exclusive parts. This is a whole new era filled with opportunities and promise. Petty partisan will eventually be part of the sordid past. It is time for Senator Shelby to try something new. Obviously, what we have been doing has not worked. Once the "hanger ons" recognize that, the sooner they can participate governing. Otherwise, they must step aside. Waving arms and screaming does nothing to help anyone. Shelby needs to stay out of the media and start reading the Stimulus Bill.

    February 8, 2009 09:19 pm at 9:19 pm |
  17. Bob

    Democrats, the economy was great for 6 1/2 years with President Bush. Then democrats took over congress....the rest is history.

    A big part of this mess is greed Americans living way beyond their means. Now it's time to pay up. I lived within in my means so why should I be punished by paying for your mistakes. NO BAILOUT!

    Good thing about this economic crisis is all the crap will get flushed out of the system.

    February 8, 2009 09:21 pm at 9:21 pm |
  18. Teena in Denver

    OK so the Republicans think this stimulus package should contain more tax cuts–I have news for the Republicans, If you aren't working then you aren't going to pay taxes! I have a compromise–if your senators or representatives don't vote for the stimulus then your state gets NO federal aide. Then, the stimulus package will only be for the states which voted for it, no money for infrastructure or jobs to those states represened by republicans. That way they are putting their money and their constituents money where there mouth er vote is. Talk about being held accountable!

    February 8, 2009 09:23 pm at 9:23 pm |
  19. Sally

    The parts of the stimulus which were cut or cut back would have benefitted everyone. We've had tax cuts and look at us!!! Clearly the Republicans do not know how to govern as they proved in the last 8 years. Democrats are trying to get a bill which will start our recovery and the peanut gallery is blowing hot air at everyone, sounding important but lacking real solutions which will actually work. They are simply mouthing rhetoric to impede Obama in a grab for power.

    February 8, 2009 09:24 pm at 9:24 pm |
  20. Republicans suck

    Who cares what these obtuse Republicans say. They spin everything...that's why they lost. Obama has the support he needs, period. And he has shown real and awesome leadershp. Now Republicans should sit back, shut up, and watch the Dems show them how the economy is supposed to be fixed.

    February 8, 2009 09:25 pm at 9:25 pm |
  21. C

    NO WORRIES, THE SHELBY TAX CUTS WILL SAVE THE DAY... NOT!!! IT'S SO AMAZING HOW REPUBLICANS STAND UP ANY TIME THE MONEY IS FOR WALLSTREET. THEY HAD NO PROBLEM MEETING HALF WAY FOR TAX CUTS FOR BIG COMPANIES, MET HALF WAY FOR $700 BILLION BAILOUT FOR COMPANIES, BUT LEFT AMERICANS HANDING WHEN IT CAME TO THE AUTO INDUSTRY, AND NOW THE REDEVELOMENT OF MAINSTREET! COME WITH A PLAN LOSERS!!! SPEND THE DARN MONEY ALREADY! REPUBS WANT TO SLOW DOWN WHILE 100,000 AMERICANS LOSE THEIR JOBS A WEEK! NICE TO GET THAT KIND OF TIME WHEN YOU HAVE A JOB, NICE HOME, AND A SIX FIGURE SALARY MR. SHELBY!!! YOU'RE FIRED!!!

    February 8, 2009 09:25 pm at 9:25 pm |
  22. Paul DObro

    $600 Billion for a war in Iraq. YES YES YES

    $800 Billion investment in the future of America NO NO NO NO

    Republicans, the party with a heart

    February 8, 2009 09:27 pm at 9:27 pm |
  23. Colin the Salesman

    Shelby is the wrong man to be talking, since Alabama has tons of non-union( (foreign) auto plants that will not get a dime of direct money from the stimulus package. I also find it ironic that a state and a region that has relied for so long on Federal money through defense contracts is objecting in principle to any form of federal economic stimulus. Perhaps he is forgeting that military bases kept the standard of living in Alabama from dropping to the level of Botswana, and that this is needed to keep the rest of us from descending to the simian level of economic standing he seems to want.

    Do us a favor, moron: unless you heve something positive to offer, get out of the way and let the adults work!

    February 8, 2009 09:28 pm at 9:28 pm |
  24. Shannon

    The Republicans don't get it, they have ruined our economy and everyhting that goes with it. Now they are trying to stand in the way of the economy being fixed.

    They are deliberately being obstructionist and trying to drag this thing out. They are in tune with their leader Limbaugh, they hope Obama fails. Well I've got knews for them, they are not in charge anymore and we don't have to listen to their fearmongering.

    February 8, 2009 09:28 pm at 9:28 pm |
  25. Kevin

    Sen. Shelby and his Republican peers are so predictable. The economy is already a disaster in case they have not noticed. They were in control for 6 of the prior 8 years. I might point out that President Bush, Sen. McCain and other Republicans were stating the fundamentals of our economy were fine in September. That said, Congressional and Senate Democrats have not proven themselves either (I voted for Obama). The House bill with all the spending unrelated to jumpstarting the economy. That said, it is disturbing how Congress and the Senate have suddenly become economists. The answer is a balanced set of responses of spending to create jobs and tax cuts to put money in people’s pockets and enable businesses to reinvest.

    February 8, 2009 09:29 pm at 9:29 pm |
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