16th Congressional candidates spar over bailout, economy

The federal government's $700 billion bailout of Wall Street provides one clear point of difference between the candidates for the Congress in the 16th district: Don Manzullo voted against it, and Bob Abboud supports it.

Manzullo, the Republican incumbent from Rockford, said the package was rushed through with no opportunity for better-examined alternatives.

"It was fatally flawed and a cram-down, expecting the taxpayer to share the burden of not just mortgages, but auto loans and credit card debt," he said.

Green Party candidate Scott Summers had called for a more measured approach to the bailout, starting with a $250 billion infusion, and he urged enforcement of antitrust laws to prevent consolidation of banks that become considered "too large to fail."

All candidates had called for oversight and taxpayer protection that was lacking in the original Bush administration proposal. The amended bill that passed ended up creating an oversight body and allows the government to buy real assets and take ownership in participating companies.

Before the vote, Abboud, the mayor of Barrington Hills running as a Democrat, had not taken a position supporting or rejecting the proposal. After the vote, Abboud issued a statement calling Manzullo "cowardly" for rejecting the bill.

But Abboud Spokesman Mike Carroll said the added oversight provisions and turmoil in the stock market helped convince Abboud immediate action was necessary.

As for apportioning blame, Abboud criticized Manzullo for helping to cause the problem by supporting the Financial Services Modernization Act, a deregulation of Depression-era protections against banks venturing into risky investments. Manzullo blamed Democrats who protected risky federally funded mortgages under Fannie Mae and Freddie Mac.

If that's not enough to differentiate the candidates, they have numerous departures on other economic issues. Manzullo favors keeping President Bush's tax cuts for upper income earners, while Abboud supports a "middle ground" that would protect small business owners.

Manzullo also favors the North American Free Trade Agreement, noting his district, which covers Northwest Illinois as far east as Barrington Hills, is a net exporter. He opposed tighter auto mileage standards that he said would have hurt American van and SUV manufacturers, and opposes minimum wage hikes as job destroyers.

In contrast, Abboud blamed Manzullo for policies that have helped ship manufacturing jobs overseas, and led the district to an unemployment rate roughly twice the national average.

As examples of this, he identified Manzullo's support for most-favored-nation status for China, and tax breaks for corporations operating overseas. As an incentive to manufacturing, he called for all federal government purchases to be made in America.

Under Manzullo, Abboud said the district has fallen prey to a "free market run amok."