Successful Bailout? by Don Boudreaux on August 2, 2010
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Second – and more importantly – the chief economic case against the bailout was not that huge infusions of taxpayer funds and special exemptions from bankruptcy rules could not make G.M. and Chrysler profitable. Of course they could. Instead, the heart of the case against the bailout is that it saps the life-blood of entrepreneurial capitalism. The bailout reinforces the debilitating precedent of protecting firms deemed ‘too big to fail.’ Capital and other resources are thus kept glued by politics to familiar lines of production, thus impeding entrepreneurial initiative that would have otherwise redeployed these resources into newer, more-dynamic, and more productive industries.
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“The broken window fallacy”
— Frédéric Bastiat Ce qu’on voit et ce qu’on ne voit pas (That Which Is Seen and That Which Is Unseen) 1850
I know for certain that the 5k$ that Obama robbed from my wife’s IRA could have been used to do something she wanted to do. Even if the bankruptcy only gave her a dollar, it was still HER dollar; not his!
Seizure by the Gooferment. Worked for FDR; worked for Obama. I won’t forget it either.
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