Bailouts Mushroom, Impoverishing Taxpayers

The federal government is expanding its bailout of AIG to $150 billion, well above its originally-predicted cost, and planning to bail out other insurers, too. Congressional leaders also plan to bail out out the automakers yet again. Professor Bainbridge and the Wall Street Journal explain why this is a bad idea. Many of the bailouts over the past year are likely to have unanticipated negative side effects of many kinds, in addition to exploding the national debt. Here is a list of things the government could do to promote an economic recovery.

Comments

dscott says:

November 10, 2008 at 10:24 am

The Opposition Response: http://conservablogs.com/publiusforum/2008/11/1...

In short, every bailout whether it be for banks, insurance companies, auto companies or home owners directly is siphoning off investment capital used for expansion of the economy. This why FDR's feel good programs while popular because it was cast as doing something, were self defeating and lengthened the Great Depression. Only private enterprise creates wealth, government can only redistribute it!
Susan says:

November 10, 2008 at 1:37 pm

1. Why do banks get away with being referred to as “financial institutions” rather than “companies” or “corporations”?
2. Where do I find information on the CEI's take on the FDIC?
Thanks!
Feebz says:

November 10, 2008 at 8:50 pm

has anyone else seen that AIG Companies is Shariah Finance Compliant through their offshore subsidiary AIG Takaful?

Michelle Malkin » AIG uses my money to tell me how taking more of my money is good for me says:

November 10, 2008 at 11:26 am

[...] Hans Bader at OpenMarket.org has more. Posted in: Subprime crisis Send to a Friend Printer Friendly comments (21) trackbacks (2) [...]
The Fed’s Ponzi Scheme: “It’s none of your business where the money is going.” « Mark Epstein says:

November 11, 2008 at 7:15 am

[...] trail. Now, the promised transparency by Bernanke and Paulson is in the toilet, at the same time the feds are giving AIG more money. The growing credit crisis is worsening, including American Express getting in on the bailout [...]
AIG spends $343,000 for Arizona retreat as thousands lose their jobs » A Couple Things » A couple things about politics, sports, travel, and other stuff. says:

November 11, 2008 at 10:05 am

[...] the government. They’re using our money to get massages and sit by the pool at posh resort. These execs should be in jail: Days before American International Group received its latest government [...]