The Stagnation Economics of Government Bailouts

                           

The liberal media and left-leaning members of Congress make much of the bailouts; some were  repaid or will “eventually” be.

                           

But that is not the important result of what happened with that attempt to get the economy moving. It is not how much money was put up and how much has been repaid. It is the effect of the bailout and what it signified.

                           

First, the bailout did not work despite today’s rationalization. Doing nothing would have not been the disaster we were lead to believe.

                           

Most importantly: Government interference in all its forms is what caused damage. The meddling, the setting of business policies, and the hiring and firing at bureaucrat whim, to go with salary caps; all that resulted and that is state capitalism.

And that resulted in stagnation economics psychology. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)