Sunday, September 21, 2008

Bailout debate

"The decisions that will be made this weekend matter not just to the prospects of the U.S. economy in the year to come; they will shape the type of capitalism we will live in for the next fifty years. Do we want to live in a system where profits are private, but losses are socialized? Where taxpayer money is used to prop up failed firms? Or do we want to live in a system where people are held responsible for their decisions, where imprudent behavior is penalized and prudent behavior rewarded? For somebody like me who believes strongly in the free market system, the most serious risk of the current situation is that the interest of few financiers will undermine the fundamental workings of the capitalist system. The time has come to save capitalism from the capitalists."

University of Chicago economist Luigi Zingales on the proposed government-backed bailout of all bailouts.

1 comment:

Anonymous said...

I am a small business. I can't wait to get big enough and borrow enough money so that when I fail, the government bails me out. 3 questions.

1.Does anybody in Washington understand macro economics?
2.How do elected officials who we pay 140k/year to rep us, wind up multi millionares by the end of the 2nd term.
3.When Washington runs the tax base out of business, who pays for thier bailouts and programs?