Wednesday, February 11, 2009

Sheldon Richman on the Bailout and Compromise

As the misnamed “stimulus” bill works its way through Congress, we once again see compromise equated with responsibility. The political “leadership” and establishment media seemed to have a vested interest in portraying anyone who refuses to compromise as recklessly unconcerned with the well-being of the country.

The problem with this outlook is that basic principles can’t be compromised...

If you know nothing about economics, you may see this as something to compromise about. Perhaps the total cost could be lowered or some of the program modified. Unfortunately, this is the official Republican position.

But that wouldn’t be a compromise. That would be a capitulation to folly. You need to know some economics to understand this.

The word “stimulus” is a propaganda word. It doesn’t describe the bill. Rather, it lies about what will really happen in order to make it more palatable to the electorate...

The only real solution is to let the market reallocate resources in harmony with the economic reality those policies have masked for years. That requires saving and investment, not consumption. It also requires abstaining from what the government seems intent on doing: re-expanding the very industries that are badly in need of contracting.

So the “stimulus” bill is anything but that. It is a highly destructive piece of legislation that should never have seen the light of day. For those who realize this, no compromise was possible.

read the entire essay

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