Home > Uncategorized > A Taxpayer Bonus, Thanks to TARP

A Taxpayer Bonus, Thanks to TARP

In 2008, the federal government used hundreds of billions of taxpayer dollars to bail out banks, car makers and other big businesses. TARP–the Troubled Asset Relief Program– symbolized the end of the Bush administration and spurred the Democratic victory in the 2008 election. Many citizens angrily protested the bailout, saying the government was looting the future earnings of the nation’s youth.

But as the program ended, the government came forth with good news. One of the main fund recipients, AIG, is ready to repay billions of borrowed funds right away. That means the bailout will cost taxpayers far less than anticipated. The government’s best scenario indicates the bailout could actually earn taxpayers a profit through interest that is paid back.

Even though the program appears to have evolved into a success story, it probably won’t get much mention in the lead-up to the November mid-term elections. Experts say TARP prevented a complete meltdown of the U.S. economy, but that is little comfort to many Americans. Unemployment remains high and home foreclosures continue. Until an economic recovery trickles to most citizens, celebrations of TARP’s success will remain muted.

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