Linda Ghent said the $700 billion bailout plan would affect the present and future.

“This will affect the way we buy houses, in buying a car, all by what our government is doing today,” said Ghent, the chair of the economics department.

The economics and political science departments will sponsor a panel discussion on the $700 billion bailout plan at 5 p.m. today in Lumpkin Auditorium.

Last Friday, President Bush approved a $700 billion economic bailout package, which allows the government to be in control over credit and lender companies that are struggling.

“The purpose of the panel is to talk about the various points of view regarding this bailout,” Ghent said.

The panel will consist of economy professors Noel Brodsky and James Bruehler, and political science professors David Carwell and Andrew McNitt. Ghent said the bailout plan is an important issue for students.

“This will affect their ability to purchase a home someday or to save for retirement,” she said. “It is likely that this tax burden will be passed to the next generation.”

Ghent said any decision the government makes about taxpayer money has to be paid back at some point in time.

“Somebody has to pay for this bailout,” she said. “And the question is who should and how should it be done.

Ghent said there are other questions to be taken into consideration.

“Should the bailout have even occurred and what is the best way out to fix the financial sector,” she said.

Bruehler said he has mixed feelings when it comes to the bailout plan the government has implemented.

“It is certainly an enormous importance to protect this nation’s financial system to the extent that the bailout will do what is good,” he said. “However, there isn’t the time to evaluate every aspect.”

Ghent said the money for the bailout plan can be borrowed today, but eventually has to be paid back.

“There is no free lunch,” she said.

Ghent said she is glad to be the moderator for the panel.

“I am glad that I am moderating this event because I have not made up my mind how I feel about the bailout,” she said.

Ghent said there are short run worries to keep into consideration.

“I worry about not doing anything regarding the short run difficulties in the financial market,” she said. “What will happen if the financial markets keep struggling?”

Ghent added there are long run effects a bailout will have.

“Bailout encourages firms and organizations to take risks in the belief that they will not have to pay the consequences if things turn out poorly,” she said.

Ghent said this plan could allow more organizations to take more risks because they think they will be able to get bailed out.

Bruehler said he hopes students show more interest in this situation.

“We as professors in general want students to be aware of the world around them,” he said. “This larger event happening is a tremendous importance and may affect students for years.”

Jessica Leggin can be reached at 581-7942 or at jmleggin@eiu.edu.