Bailout: Far Worse than a Recession
George W. Bush might be the most successful socialist in American history. His administration has engineered the greatest increase in entitlement and discretionary spending since FDR. His deficits amount to the largest tax increase in recent history. His domestic response to 9-11 was the Transportation Safety Administration, the greatest increase in federal bureaucracy and payrolls in a generation. His Ted-Kennedy-authored education bill is the greatest expansion of federal power over education ever. His economic stimulus solution was to send “rebate” checks to people that don’t even pay taxes — the most direct transfer of wealth I’ve ever seen.
His solution to the mortgage crisis was to nationalize much of the mortgage industry, to forcefully deliver one bank to another at a government-determined price, and to buy 79.9% of AIG, the world’s largest insurance firm with $80 billion in public funds. Now his crew of economic megalomaniacs have moved to bailout the nation’s incompetent bankers by using nearly a trillion dollars of taxpayer money to buy from them their worst investments – lest their losses lead to a recession.
There is no recession on Earth that can do as much damage to our nation’s fundamental economic structure as this proposed bailout. A recession usually lasts only a year or two. But history shows us that he expansion of federal power lasts forever. Nearly 80 years after The Great Depression ended, Washington, D.C. is still full agencies created to save us from it. What Bush offers to protect us from now is the free market itself. How does he propose we get that back once he sets the precedent of government forcing the taxpayers to eat any unpleasant corporate losses?
Clearly, Bush has the ego of a liberal. He believes the American system cannot exist without his constant personal intervention. He has met every crisis with a huge government plan that he believes can fix the problem because it is his plan. Confidence in the resiliency of the American nation to exist just fine through his inaction is totally lacking. The man was as clearly born into the wrong party as Lincoln Chafee.
Bush believes only his quick, expansive and heavy-handed action can save the great banks and the little man (or is that his place in history is trying to save?). A similar belief in their own indispensability extends to his economic underlings, Paulson and Bernanke. Paulson has called the current bank (profit) crisis “embarrassing.” The most embarrassing thing about it is Paulson and his eager willingness to destroy 250 years of American capitalist precedent to avoid two quarters of negative growth — in other words, a recession. And only a fool would believe that recessions (or even just this recession) can be avoided if we just let the government take over.
Do we really want to live in a country in which government owns the important businesses and protects them from competition, external change, and their own gross stupidity?
If we allow this to occur, what exactly will be left for us to make fun of about France?
This economic crisis is no different in character than any other. It may prove larger in scope than most, but it will not consume all banks, and those that made better decisions will survive and replace the less well run. 5 or 10 years from now, America will be better off for the catharsis. Unless, that is, we fall prey to the temptation to scrap all our principles and sell our economic patrimony to avoid a temporary brush with recession.
It would be better for all of Wall Street to fail than for us to accept Bush’s expansive bailout plan –which amounts to borrowing money to give away to lenders. Are we really such a fragile bunch that we seek to be immune to occasional hard times?
I hope not. But it doesn’t look good.
When a Republican President leads the charge toward bigger government, what party is left to defend limited government? A big-government Republican is far more dangerous than a big-government Democrat — because he can expand government almost without organized opposition.
If there is any instinct toward limited government left in the GOP, it had better express itself now in opposition to the strange oligarchical socialism that is being rushed through Congress in the name of stopping the unstoppable: economics.
If the choice is bailout or recession, I choose recession. In the long run, America can survive that just fine.