Politics & Policy

Sestak Applauds Another Federal Bailout

Joe Sestak is lauding the Senate’s $26 billion federal bailout package for states struggling to meet pressing fiscal demands.

Specifically, Sestak applauded Pennsylvania’s $600 million dollar share, which will go toward bailing out Medicaid obligations in the commonwealth. (Another $380 million will flow from Washington to the Harrisburg school district in an effort to prop up education spending.)

“We cannot continue to pile additional hardships on already cash-strapped Pennsylvanians,” asserted Sestak. “Practically speaking, we need to do whatever we can to maintain essential services and preserve jobs.”

What Sestak ignores is that this bailout is a de facto tax on the “already cash-strapped” citizens of Pennsylvania. These federal bailouts are made possible by deficit financing, debt that “cash-strapped” citizens bear.

The Medicaid bailout, moreover, will expire in six months. So Sestak is applauding what is little more than a stop-gap measure designed to kick the can down the road on the issue of state revenue and entitlement obligations.

This how Sestak intends to “handle the tough problems” in the U.S. Senate?

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