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. karkri

    Hello! We are already in a disaster. These Republican SOBs have brought us to this disaster in the past 8 years. In stead of providing solutions (oh, I forgot – these guys know how to screw up, how can they provide solutions?) what right to they have to criticize the Democrats?

    February 8, 2009 05:28 pm at 5:28 pm |
  2. Shirley

    Why do we keep hearing what the Republicans have to say about what's wrong with the bill? When are the Dems going to start telling public what is right about it?

    February 8, 2009 05:29 pm at 5:29 pm |
  3. Hope for America

    Memo to Sen. Shelby: WE ARE ALREADY IN A FINANCIAL DISASTER!!

    Good grief, what planet are these people on???

    February 8, 2009 05:29 pm at 5:29 pm |
  4. Socialism and Welfare - the Democratic Plank

    Well at least we know what Obama's goals are for the country:

    1 – Turn the country into a socialistic state
    2 – redistribute wealth
    3 – bring in 100 million illegal immigrants to cement the Democratic base
    4 – Launder billions of dollars through the banking system to fringe illegal groups such as Acorn.
    5 – Increase the welfare roles by 200%
    6 – Give Nancy Pelosi the federal checkbook
    7 – Reward and promote tax cheats
    8 – Pay lip service to bi partisan government
    9 – Promote fear mongering as a way to hold onto power
    10 – Talk, talk, talk, talk, talk, talk but do little

    February 8, 2009 05:29 pm at 5:29 pm |
  5. Ohio for Obama- Suburbs

    Wait a minute, Did Bush and the Republicans already put this country in disaster the last 8 years. All of a sudden these republicans have these great ideas and solutions, but failed to bring them to light prior to Nov 4, 2008.

    Get out of here with that.

    February 8, 2009 05:30 pm at 5:30 pm |
  6. thomas

    If these Republicans don't want to solve the problems of America, they should resign their seats so someone who understands the crisi can do something productive. Lead, follow, or get out of the way.

    February 8, 2009 05:30 pm at 5:30 pm |
  7. Lauren

    If they really want to stimulate us,,, give us all 250,000 dollar limits on our credit cards, then bail us out like they did Wall Street. Then instead of buying hybrid cars for just the government, buy one for any person in the USA who travels more than 20 miles one way to work.
    Then anyone who is going to have a home foreclosed one, pay that loan off, and give them another 150,000 to go but a second home.
    After all that is done, anyone who wants to live above thier income limits, should be given a buy out also.
    Anyone who does NOT pay taxes, then should get a 25,000 dollar check, just because they need it.
    In order to stimulate the medical profession, all illegal immigrants should get any sort of medical care needed, FREE, the taxpayers will foot that bill.
    Deadbeat fathers should be allowed to forgive thier debt and then go work a job building this infrastructre we are bieng promised.
    Also, movie starts and Pro athletes should get HUGE raises also, lord know they need alll thier money to smooch up to thier politcal causes.

    February 8, 2009 05:31 pm at 5:31 pm |
  8. susanb

    Lawrence Summers is exactly right.

    The Republicans had 8 years to run the country and what happened? They caused more damage to this country than any other party/administration in the history of the United States.

    It is mindboggling to me that they think that their opinions and their programs have any validity for most Americans.

    They are being obstructionist and rigidly following their leader – Rush Limbaugh – who said that he wants President Obama to fail. All the Republican leaders want President Obama to fail.

    They are narrow-minded ideologues whose only goal is to gain back power. And they will do anything and say anything to try to meet that goal.

    They have NO concern for the average American who is struggling to put food on the table and pay their mortgage and other bills.

    I am an independent moderate – who in my 63 years has voted about equally for Republicans and Democrats.

    But 8 years of Bush (do I need to list all the wrongs?) and the divisive and hate filled campaign of McCain/Palin and now this attempt to make President Obama fail – have all combined to make me vow to NEVER vote for another Republican candidate for the rest of my life.

    Senator McConnell said last week that their party is in danger of becoming a regional party. No, Mr. McConnell. The Republican Party is in danger of becoming a nonexistent party – a footnote in history !!!

    February 8, 2009 05:31 pm at 5:31 pm |
  9. Anna

    Summers pretty much said it all.
    And someone might want to tell that "leading Republican" referred to in the 1st paragraph that we're already in a financial disaster.

    February 8, 2009 05:31 pm at 5:31 pm |
  10. acmepostings

    Laying the foundation for the propaganda of the future.

    February 8, 2009 05:32 pm at 5:32 pm |
  11. usualone

    What does Mr. Shelby call the present condition of the economy? A fine healthy economy? Does he realize how the last eight years left us in such a downward direction? He wants to delay and delay fixing the economy so that the problems will look like the economy faltered during the current regime. I hope people have long memories.

    February 8, 2009 05:33 pm at 5:33 pm |
  12. Chris

    The Republicans need to shut up and let the Dems take over from here. After all, right wing decision-making is what got is here in the first place. I trust in Obama and his economic team much more than any Republican from the Senate Banking Committee...

    February 8, 2009 05:33 pm at 5:33 pm |
  13. Gene

    Every republican says that the stimulus package will lead to a disaster, and every dem says it'll save the economy. The way I see it.. at this point, we're already in a disaster.. doing something is better than doing nothing.. which has been done for the last 8 years.

    February 8, 2009 05:33 pm at 5:33 pm |
  14. dan

    Obama (Carter) carries the water for Pelosi and Reid. Obama(Carter) has no choice, but to take what Pelosi and Reid give him. Obama (Carter) will be a well liked, one term President.

    February 8, 2009 05:34 pm at 5:34 pm |
  15. Proud American

    Someone should tell this Idiot that the country is already a disaster because of what they have done. Please someone lock these Idiots in a closet somewhere so democrats can get on with the business of this country.

    February 8, 2009 05:34 pm at 5:34 pm |
  16. David

    Is he serious? Does he not understand that we've been on the road to financial disaster for eight years now? This is exactly the out-of-touch behavior that people expect from the GOP.

    February 8, 2009 05:36 pm at 5:36 pm |
  17. REPUBLIC OF TEXAS

    THE USA WILL BECOME JUST A THIRD WORLD COUNTRY, A SOCALIST COUNTRY LIKE FRANCE, GERMANY, AND OTHER EUROPEIAN COUNTRY. WE WILL LOSS ALOT OF OUR FREEDOM,,TOO MUCH GOVENERMENT CONTROL.

    February 8, 2009 05:37 pm at 5:37 pm |
  18. Karol

    The Republicans and their policies have a lot to do with the situation we're in right now. They need to sit down and shut up.

    February 8, 2009 05:37 pm at 5:37 pm |
  19. Annemarie

    The fundamentals of the economy are strong or we are headed for disaster. Come on, make up your mind, which one is it? Got news for you, we are already in a disaster and need answers, not critics! Anyone can criticize, blame and spread fear – that is easy. We need someone who can work on solving the problems that many of those complaining are directly responsible for, and build some confidence that things can be made right. Let's give our new President and Administration a chance. It's the least we can do after they have been given a true mandate by the American people.

    February 8, 2009 05:37 pm at 5:37 pm |
  20. Ed Word

    All of a sudden these spend-like-drunken sailor republicans are fiscal watchdogs?

    What a difference an election day makes.............

    February 8, 2009 05:37 pm at 5:37 pm |
  21. Ray in Nashville

    This is a good example of why I didn't vote for this idiot when I lived in Alabama. If he thinks this stimulus package will put us on the "road to financial disaster," what road does he think we've been on for the past year?

    February 8, 2009 05:37 pm at 5:37 pm |
  22. Independent America

    This guys just looks racist. The Republicans cannot be trusted with any issues that involve finances. Better yet, they do not deserve to be taken seriously when it involves finances because of what has happened to the economy. The media should not be giving them a platform of legitimacy.

    February 8, 2009 05:38 pm at 5:38 pm |
  23. alvin

    We have tried it the Republican way for the last 8 years and it has failed.

    Now is time to do it the Democrat way. This stimulus will work and America will be out of the recession. I don`t know why Republicans are trying to be obstructionist. History has shown that Democrats are better at handling the economy.

    February 8, 2009 05:38 pm at 5:38 pm |
  24. atom

    wow so if its not what the republicans want its gonna fail right..
    i looked at the republicans view stimulate home buying and tax cuts right.... how is anyone gonna buy a home when there unemployed and how are they gonna enjoy them tax cuts jobless. isnt this stimulus about creating jobs and upgrading..

    February 8, 2009 05:39 pm at 5:39 pm |
  25. mary,florida

    So the party that broke us is now saying Obama's plan could have the same affect as their failed policys.Thats like a thief telling someone that stealing is wrong.

    February 8, 2009 05:40 pm at 5:40 pm |
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