When it comes to spending other people’s money, the Daily is awfully generous. That was the case in its editorial yesterday about a bailout for the Big Three (Bailing out our future, 11/18/2008).
A taxpayer-funded bailout for the Big Three can’t be defended on moral grounds because it is wrong to rob Peter to pay Paul, regardless of how many skilled lobbyists Paul may have in Washington D.C. Nor can it be defended on practical grounds, since this would be a subsidy for the bloated and inefficient management practices that got automakers here in the first place. A bailout would “spread the wealth” from poor taxpayers to rich executives.
Bailouts also misallocate resources by placing capital in the hands of politicians rather than market forces. Supporting Congress’s use of a limitless credit card that will be charged to our children and grandchildren to bailout private companies is morally reprehensible and confusing public policy. It would make more sense to throw our money down a hole.
The letter writer is a co-chair of the University’s chapter of the College Libertarians.