Bailout, economy divide U.S. Senate picks
SPRINGFIELD - U.S. Sen. Dick Durbin voted for the recent $700 billion economic rescue package for the nation's financial markets, but his Republican opponent argues the deal was misguided.
Durbin, a Springfield Democrat, said the bailout was not passed to reward businesses that created the economic collapse, but was necessary to stabilize the economy.
"I understand why many are concerned about the companies that are struggling on Wall Street, but I am more concerned about the homeowners who were caught up in the tricks and traps of the subprime mortgages those Wall Street companies peddled so profitably before their house of cards fell," Durbin said.
Willowbrook Republican Dr. Steve Sauerberg agreed federal intervention was needed, but not the kind that came out of Capitol Hill. "Nationalizing our nation's financial industry is not the solution to the challenges facing our economy today," Sauerberg said.
He said Congress should have temporarily repealed the capital gains tax, ended financial tools such as mark-to-market accounting that can exacerbate declines and cut the corporate tax rate. Sauerberg said energy reforms also should have been part of any federal package.
The issue illustrates one of several key divisions between the two Senate candidates in their responses to a series of questions from the Daily Herald. They seek a six-year term in the U.S. Senate. Durbin, previously a member of the U.S. House, was elected to the Senate in 1996 and re-elected in 2002. He currently serves as the Senate's assistant majority leader. Sauerberg is making his first run at elected office.
Other candidates on the ballot include Green Party nominee Kathy Cummings of Chicago, Larry Stafford, a South Beloit Libertarian, and Chad Koppie from Gilberts running for the Constitution Party of Illinois.
Sauerberg opposes further government regulation in the financial markets and said the one thing the government could do to spur the economy is, "cut taxes - immediately."
Durbin, on the other hand, called for an overhaul of the country's financial system. "Additional oversight and accountability is essential," he said.
Similarly asked to name one thing government could do to improve the economy, Durbin pointed to energy independence creating a swath of "green" jobs across all segments.
The two, however, do agree on some issues.
Both supported the North American Free Trade Agreement, though Durbin expressed skepticism that American workers are getting the benefits and Sauerberg acknowledged, "some old economy jobs have left."