Friday, October 03, 2008

The Bailout Mess

So far I haven't commented on the bailout proposed by Bush and is working its way through Congress. Two people who's opinions I respect, Jerry Pournelle and Robert Bruce Thompson, have differing opinions (both are linked in my blogroll if you want to see what they have to say).

Jerry supports a bailout and Robert opposes it. In the end, I have to come down on Robert's side in this debate and oppose the bill in its current form, or in any form for that matter. It is a disaster waiting to happen. At best, a bailout will prop up the house of cards a bit longer, merely delaying the necessary correction. I am concerned that by doing so, the eventual collapse will be made worse.  Much worse.

It is the nature of capitalism for bubbles to happen and then pop. The market needs a serious correction. Now. Actions must have consequence. The proposed bailout seeks to take private errors of judgement and socialize the poor consequnces, shifting the burden of poor decisions by investment bankers onto the backs of taxpayers.

Worse, by intertwining the Federal government even further into the market it lays the ground for fascism* or socialism. Both ideologies flourish in hard econimc times. Whether or not a completely laissez-faire capitalist system is the best can be debated among reasonable people. But fascism and socialism lead to tyranny.

Unfortunately too many useful idiots would welcome total goverment control over the market. Not me. Surely, the same people who brought us the IRS (renowned for customer service, and who couldn't run a profit at the Mustang Ranch when they seized it for back taxes), Amtrak, and No Child Gets Ahead Left Behind, couldn't possibly fuck up the economy beyond repair, could they?

* One of the biggest con jobs of 20th Century was the success of socialists and communists in getting fascism painted as a right-wing ideology. It's not. Fascism is more accurately described as socialism with a nationalist twist. Mussolini started out as a socialist. The formal name of the Nazi party in Germany was the NSDAP - the National Socialist German Workers' Party.

1 comment:

geekWithA.45 said...

Well, the nationalist twist was necessary, because WWI had demonstrated international socialism to be false when the workers of the world, rather than uniting on the basis of their shared proletariat roots, shot at each other based on their unshared national roots.

The other big divergence from canonical socialism was private ownership of the means of production (under stringent state regulation for social purposes) rather than state ownership.

For this reason, whenever a Leftist claims not to be a socialist because they don't advocate state ownership of corporate entities, I agree with them, and slap the "fascist" sticker on them.

It's fun to watch them splutter.