Nerd Notes: More Economists Versus the Bailout

Check out expert opinion by economists Steven Landsburg (also an econ prof) and Gary Becker (also a Nobel Prize laureate).

Me? I'm no economist, but I really don't like the idea of government grabbing $700 billion (billion with a B!) of taxpayer money to distribute capriciously to whatever recipient it wants. It smacks of "crony capitalism" like you'd find in crooked, corrupt nations run by kleptocrats. That's not even real capitalism at all. Capitalism at its truest means that you personally get to keep and deal with both your successes and your failures. The crowning foolishness of massive bailouts is that it makes non-failures and ordinary taxpayers ultimately pay for the failures of big financial operations. What's to keep other big operations in future from making more (and even worse) stupid decisions? They don't have to face the consequences; they can just run crying to Big Government for help, and Big Government will shell out $700 billion in Other People's Money. This is going to create a toxic environment that almost guarantees future bailouts. Besides, this is going to broaden government meddling in the financial sector in a huge way. (Needless to say, I don't think this is a good idea!)

Also, how is this bailout plan NOT, basically, the nationalization of every bad mortgage in the country? I've heard someone call this plan "cash for trash," and that sounds horribly accurate.

By the way, blog friend Pursuit of Serenity cheerfully suggests that I ask for a government bailout too. Why not? Everybody's doing it! I'm too big/small/Asian/girly/awesome/silly/nerdy/whatever-adjective-you-want to fail! Here's even a handy bailout guide if you too want a government bailout to rescue you from your own mistakes!

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