Girl, You Have No Faith in Capitalism

One difficult element of my decision to vote for now-President Obama was his stand on this bailout stupidity. He is all for pumping failing banks (and auto companies and some other industries) full of taxpayer money. I think it’s ridiculous, and I’m not alone. Here is a list of people who think we should let the banks fail. Those highly intelligent economist types also suggest that the bailouts will prolong and perhaps deepen our misery.

Now, before you tell me I shoulda voted Republican, remember that the GOP stepped right up to the trough beside their Democrat brethren as soon as enough pork for their constituents was added to the mix. John McCain was right in there; the difference between him and Obama at the time seemed to be that Obama was working with others to fix the problem (stupid as I think their solution is), while McCain was just getting in the way. Even now, the Republican boycott of this bill seems to be principally about what kind of bailout. In one Republican proposal, for example, stuffed with political pork as well as tax cuts for the very rich, and for corporations (both of these groups have higher effective tax rates than Joe Middle Class, but less than their peers in your average Westernized nation) is estimated to cost three times President Obama’s plan in lost revenue. Alternative plan or no, it’s only the Republican congresspeople resisting Obama’s initiative; the Republican governors are all fighting for their pieces of the bailout pie (including Sarah Palin, who is deeply allergic to even the smell of socialism when cameras are pointing at her).

Rescuing institutions that are failing because of risky decisions is bad behavior management. If it’s socialism, it’s the stupidest form (called “Lemon socialism,” a term for which there is already a Wikipedia entry). And no matter how you slice it, this is a flat-out rescue.

To President Obama and the Democrats who fall in line behind him, I would say, “Listen to the economists, and not just the left-wingers.” To the Republican congresspersons who are stonewalling, I’d say, “Good on ya!” To the Republicans who have decided to clamor for their chunk  of the stimulus, I’d say “It’s a good thing capitalism is not truly a religion; if it were, you wouldn’t have enough faith to get out of bed on Sunday.”

To the financial analysts who worry that Obama’s strict caps on executive pay in organizations living on the dole will drive talented executives away from those organizations to others that are not wallowing in TARP funds, I would say, “Yep.” Then the bailed-out companies will fail, the non-bailed-out ones will fill their places, and market forces will eventually re-prove themselves. And all it cost us was our grandchildren’s standard of living.