Reader Victor S. writes:
The news today said the price-tag is going to be $700 billion. (That would be about $2333 per American, and on tv today one commentator suggested the price tag might go over $1 trillion. That price of $2333 is including everybody, including children, retired, and others who do not actively contribute to the tax base. That means that for those of us who do it will be much higher.)
This bailout appears to have approval of both parties.
I understand the argument that it will hurt the economy if these companies falter and fail. But look at the obvious. It will hurt the economy to ask every person fork over $2000+ (please, again, remember that those who are paying taxes will have to cover those who don’t) just to save some companies who, apparently, made some bad choices.
What I cannot figure out is why they have to rush to get this approved.
A final thought; both parties seem to be supporting the President in this. Nobody can blame their political opponents for this one.
Republicans are starting to push back against the bailout because it seems to be the opposite of capitalism–anti-capitalism.
The conservative in me approaches this thing with caution. I think this problem was caused by bad Democrat-influenced policy through their campaign fundraisers, Fannie Mae & Freddy Mac. But just because the problem was caused by government intervention does not, of a necessity, mean that government is best suited to “solve” the problem.
In this instance, Democrat socialists will have significantly harmed the American economy only to accrue to themselves greater control of the economy as a result.
Any believer in free markets should be very skeptical of a government solution to this problem–especially when the problem was, at its core, caused by elements of the government. The tendency in crises like these is to want to do something. That is not always the best response.
The fiscal libertarian in me says, “let the banks fail and the market will pick up the pieces.” That’s my ideological response.
I’m prepared to be persuaded on practical and pragmatic grounds.
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