Just a quick comment on President Obama’s plan to use surplus TARP money to fund various job creation measures. I think it’s a bad idea. First, TARP funds were appropriated for one purpose and I think it’s a bad idea to use them as some sort of slush fund even if the goal is worthwhile. Second, as I explained in my last Forbes column, I think there is enough stimulus in the pipeline and we should let it work before trying to pump more money into the economy. Third, I think it is better to use TRAP funds for deficit reduction; failure to do so will call into question the administration’s commitment to allowing stimulus spending to expire on schedule. Finally, if Congress believes that targeted jobs programs are still justified, they should be funded through the appropriations process.
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