RSS
Home
Stop government bailouts
Print
Email
RSS
Subscribe
.jpg)
Originally published in the Sacramento Bee on May 5th, 2009.
Re "So many bailouts, and now bank pay is soaring again" (Viewpoints, April 28): Paul Krugman's outrage over bank pay is misplaced. While he laments the fact that taxpayers are forced to cover the massive salaries of Wall Street executives, he endorses the economic policies that make it a reality – mainly, the federal bailouts. Krugman suggests that bailing out bankrupt financial firms was necessary to keep the economy from collapsing, but this is pure conjecture. Failing businesses must be allowed to close their doors in a market economy.
As economist Frank Shostak explains: "A business that reaches the state of bankruptcy is most likely pursuing activities that do not contribute to real wealth but rather squander wealth. The longer a losing activity is allowed to stay alive, the more damage is being inflicted on real wealth generators."
If Krugman is really concerned about taxpayers and the health of the economy, he should support ending all government subsidies to bankrupt businesses.
For more info:
Related Articles:
Add a Comment
Teachers' unions supposedly do a lot for education. Thanks to their efforts, dedicated teachers are paid more and our schools turn out …
The following is my letter to the editor published in today's Sacramento Bee. The author of a recent editorial in the same paper argued that 'green' …
