Paul Ryan: Why I voted for TARP and the auto bailouts

TARP. I’ll take one at a time. I believe we were on the cusp of a deflationary spiral which would have created a Depression. I think that’s probably pretty likely. If we would have allowed that to happen, I think we would have had a big government agenda sweeping through this country so fast that we wouldn’t have recovered from it. So in order to prevent a Depression and a complete evisceration of the free market system we have, I think it was necessary. It wasn’t a fun vote. You don’t get to choose the kind of votes you want. But I just think as far as the long term objectives that I have — which are restoring the principles of this country — I think it was necessary to prevent those principles from being really kind of wiped out for a generation.

Auto. Really clear. The president’s chief of staff [Josh Bolten] made it extremely clear to me before the vote, which is either the auto companies get the money that was put in the Energy Department for them already — a bill that I voted against because I didn’t want to give them that money, which was only within the $25 billion, money that was already expended but not obligated — or the president was going to give them TARP, with no limit. That’s what they told me. That’s what the president’s chief of staff explained to me. I said, ‘Well, I don’t want them to get TARP. We want to keep TARP on a [inaudible]. We don’t want to expand it. So give them that Energy Department money that at least puts them out of TARP, and is limited.’ Well, where are we now? What I feared would happen did happen. The bill failed, and now they’ve got $87 billion from TARP, money we’re not going to get back. And now TARP, as a precedent established by the Bush administration, whereby the Obama administration now has turned this thing into its latest slush fund. And so I voted for that to prevent precisely what has happened, which I feared would happen.