$900 Billion: The Price of Socialism
Written by Mike on September 17th, 2008$900 billion. I want to repeat that number: $900 billion. That is the total cost to date of the Federal Government’s bailouts of private industry in the wake of the credit debacle.
You can argue that most of these bailouts were unnecessary or that this action was required by the government to prevent the worldwide financial system from imploding. Whichever side of the issue you take is basically irrelevant at this late stage of the game. The Federal government with no constitutional or legislative authority has just nationalized the 35th biggest company in the world. Yes that is pure socialism, but the most damning thing was not the act of nationalizing AIG, but the decades of socialism that brought us to this grim place where nationalizing AIG was the most palatable option on the table.
If you think this is bad, wait until the balance sheet of the Federal Reserve can take no more bailouts. We’re not there yet, but are well on our way. The day that happens will make today a pleasant memory.
17
AM
Please tell me that this is the cost of all bailouts ever, and not the cost of the bailouts of the last few months…
Also, compared to that number, paying teachers a little more doesn’t look so bad.
17
AM
It is the cost of bailouts beginning with Bear Stearns and the expansion of the Fed’s term auction facility (the slew of new regulations that passed congress recently).
17
AM
And only a few of us still advocate the free market. Pretty soon the government will own as much private sector in the US as in most of Europe. Give it a few months and we will probably pass Canada at this pace.
17
PM
Hopefully this is a lesson learned. As we go forward I am optimistic that the voters will reject future attempts at socialism such as proposed by both Obama and McCain.