November 9, 2008
The $700-billion bailout was presented as an emergency measure necessary in the face of an unprecedented credit crunch. So, while banks have been given money to ease lending, there are “growing complaints that the recipients of the taxpayer bailout are using the money not to lend to customers but to buy their competitors.”
Now, democratic leaders are calling for a bailout of the American auto industry.
No doubt, other industries will come calling next.
All of this was entirely predictable, yet the political class will certainly blame “special interests” who supposedly corrupt our politicians by trading campaign donations for government assistance.
The real problem, however, is a government that continues to provide such “assistance.” If government were less involved in business, then business lobbyists would be less interested in influencing government. As Walter Williams writes:
Let’s get rid of the “special interests” – let’s shrink government.
UPDATE: Jennifer Rubin makes some great points.