Senate candidates differ on economic remedy

SPRINGFIELD -- The three Republican U.S. Senate hopefuls all agree the country is either in or headed toward an economic recession, though they have differing plans to fix it.

Chicago trucker Mike Psak said the federal government must be downsized. "Revival can only come if we come to grips with the fact that our government is too large," he said.

Willowbrook physician Steve Sauerberg said he favors tax cuts for individuals, families and businesses, while Chicago Internet author Andy Martin said only that there is no quick fix to what ails the nation's economy.

All three are vying next month for the GOP nod to face incumbent Democratic U.S. Sen. Dick Durbin of Springfield, who is unopposed in the primary.

In responding to a series of Daily Herald economic questions, the Republican hopefuls all expressed their opposition to tax increases and stressed the need for new energy sources and U.S. energy independence as the ultimate solutions to rising gas prices.

But none advocates direct federal intervention to lower prices.

"The market is allocating fuel properly. Political tinkering will only make matters worse," said Martin. "There is very little the federal government can do. We must become energy independent as a first national priority."

Asked to name one thing they'd cut from federal spending, Psak took aim at the Corporation for Public Broadcasting, the private, nonprofit agency that funds programming for public television and public radio nationwide.

"This costs taxpayers over $400 million. There are so many more TV/radio stations now than there were when the CPB was initiated, it is something that the government shouldn't need to subsidize any more," Psak said.

Sauerberg said he'd end congressional "earmark" project spending in the federal budget, blaming the process for adding billions worth of unnecessary spending.

"I firmly believe that members of Congress should not have the authority to direct federal spending to specific projects without significant scrutiny," Sauerberg said.

Martin called for across-the-board cuts, though he favored sparing military and social program spending.

All three agreed the national home lending situation has become an economic crisis. Both Sauerberg and Martin supported some form of government intervention to help those at risk of losing their homes by rising interest rates.

Martin said mortgage rates should be frozen temporarily for at-risk borrowers. "We should not allow millions of foreclosures to go forward and disrupt families, flood courts and endanger the safety of adjacent homeowners," Martin said.

Sauerberg supports the Bush administration Hope Now plan that would keep at-risk homeowners' mortgages at the initial lower rate for a few years rather than let them reset to higher rates.

He said tax cuts should be part of the fix. "Much needed tax relief would put more money back into the pockets of struggling homeowners," Sauerberg said.

Psak said he was "torn on the issue."

"On the one hand, I don't believe that irresponsibility on the part of the private sector should create a burden to taxpayers. On the other hand, there has been so many precedents of government bailing out others and the subprime victims were forced to pay," Psak said. "I'm not sure if we are ready to end the cycle yet, and I'd have to study the issue more."