I wish I had been wrong about this one.
Congress has apparently mustered bi-partisan support for what will be the largest bank bailout bill in American history. The worst part? The bill is a Trojan horse for a laundry list of other shit that has absolutely nothing to do with the pandemic or the coming depression.
Details are still emerging, thus we’re still not sure how bad this will fuck future generations of American taxpayers. But hey — at least we get a little bit of our own money back so we can make it through the next five seconds!
…though I guess I probably shouldn’t assume that the only beneficiaries of this bailout will be net taxpayers. For net taxpayers, it’ll be like taking money out of one pocket (or one of their kids’ pockets) and putting less of it in another. For everyone else, it’s like winning the lottery.
Which is why this type of intervention is a huge, dysgenic moral hazard. Rapidly consuming our resources while destroying our ability to allocate those resource can only end in disaster under the BEST of conditions. Dragging the unborn into it through national debt and punishing their future productivity through progressive taxation?
We are going to have a Soviet-scale crisis on our hands.
In related news, the “digital dollar” provision of the bill was removed but has apparently re-emerged in an independent Senate proposal. I’ve got all the latest!
This is EPISODE 396 of So to Speak w/ Jared Howe!