Thursday, January 08, 2009

Bailoutistan's Dilemma

Who will bail out America?

Seems an apt question, given the recession, the fact that everyone under the sun is lining up for federal dollars, and the President is determined to spend until our economy is somewhere south of Cuba’s.

Something we’ve apparently neglected to learn is that government style planning doesn’t work. Government has a horrendous record in setting industrial strategy, especially since once the favored “investments” go south, the recipients simply wheedle more out of Congress. There’s a built in constituency that has little to fear from market failure.

We are now busy translating that mess into handouts for all.

Uncle Sam does not have unlimited resources. It can only use things that are borrowed, taxed, or taken away from the rightful owners. The essence of the Obama’s Bailoutistan Stimulus package is robbing Peter to pay Paul, all with the hope that Paul either won’t notice, or isn’t a big contributor to the Democratic party.

Anybody remember how exercised the world was at the deficits Congress ran up under Reagan? It was hardly a tithe of the Obama plan.