Dylan Schiemann

I had thought about writing a treatise on why bailouts are bad, but Ron Paul saved me the time with his article that is appropriately called “The Bailout Surge“, a clear poke at the Iraq Surge (emphasis below is mine):

We must remember that governments do not produce anything. Their only resources come from producers in the economy through such means as inflation and taxation. The government has an obligation to be good stewards of these resources. In bailing out failing companies, they are confiscating money from productive members of the economy and giving it to failing ones. By sustaining companies with obsolete or unsustainable business models, the government prevents their resources from being liquidated and made available to other companies that can put them to better, more productive use. An essential element of a healthy free market, is that both success and failure must be permitted to happen when they are earned. But instead with a bailout, the rewards are reversed – the proceeds from successful entities are given to failing ones. How this is supposed to be good for our economy is beyond me.

Read the full article, The Bailout Surge, for more details