Are you surprised? I’m not surprised.
Turns out Congresswoman Maxine Waters had “family financial ties” to a bank for which she personally helped solicit bailout money. Without regard to its relative need or value to the economy.
Trillions in stimulus money, bailout money. And we expect politicians will allocate it according to some impersonal calculus that has nothing to do with who their chums are?
Nor can we expect the politicians and bureaucrats to sit back and let the market, or what’s left of it, function unhampered once bailout money has been forked over.
Many banks seemed to think they would simply be allowed to spend the subsidies according to their own judgment about how best to promote the health of their enterprises. But once the bailouts failed to work the instant magic they were supposed to, politicians began attaching strings. So that voters angry about the bailouts could see that there’s “accountability.”
It’s not just about trimming fat executive bonuses. The banks are also supposed to obey orders to cancel employee training, reduce dividends to shareholders, stop hiring employees from overseas, etc. This is about social engineering, not economic efficiency.
So, many banks now say they’ll give the money back. Good idea; great idea. But it would really surprise me if it found its way all the way back to taxpayers.
This is Common Sense. I’m Paul Jacob.