Bill to Rescue US Economy is defeated 228-205 – Stocks Fall

Cynthia Cheng

The bill which was proposed to save the US economy from turmoil has been narrowly defeated 228 to 205. Stocks began to fall prior to the official announcement, with the Dow dropping as much as 700 points after the announcement. According to reports, with the majority of Republicans (133) and a handful of Democrats (95) in opposition. Many Republicans were worried that the bill would limit economic freedom as the Treasury would be given much more power. However, at the same time, a bill passed would mean that the economy could be on the road to recovery.

It would be interesting to see a regional breakdown. We already know that the majority of Republicans – those from the so-called “red” districts, voted against the bill, but there were some that did not. Same goes with the Democrats. Were those who were against the bill from places with more small businesses rather than big Wall Street companies? The bill certainly doesn’t do much for the so-called “average person” as it does not address housing or job losses, interests that go beyond the big companies. Of course, Republicans, like most conservatives do not like bureaucracy. With more power given to the Treasury, the bill would limit economic freedom. This, to the Republicans (and some Democrats), is not good for business as it would slow down progress. But what is more important? Recovery under tougher bureaucracy or no recovery, but with more freedom? Sometimes, rules, tight rules are necessary.

People do agree that the economy needs help, and perhaps a revised bill, which, according to media reports should be coming in the next few days, could be the second chance.

More information on the Bailout bill results can be found on CNN, The Wall Street Journal and other major media outlets.