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Quick thought on an auto bailout

Another inflation-powered bailout of nearly an entire industry, this time U.S. automakers, is imminent. It is practically a certainty by this point. I’m not sure whether the Bush or Obama administrations will do it, but it doesn’t matter.

How is a $50 billion bailout of these behemoth failures different from taking some significant portion of every American’s income and forcing them to buy a car with it? Or a portion of a car? At least, if they made us spend $1000 or $5000 each on a car, we might be out some much needed cash but at least we’d have a new car to show for it! Simply taking money from everyone and giving it to a company that is going to go bankrupt anyway is an immoral, destructive wealth transfer of the worst kind.

Posted in Rants