Whats the role of government in ensuring the financial well-being of its citizens?

[Jake]

[quote='BusNative;119638;7]Well, yes. Literally.

Same as when Bear Stearns' assets are rescued (backstopped). Same as when Katrina victims are rescued (hypothetically, of course). Same as when Iraqi citizens are 'rescued' from tyranny. Same as when starving people in other countries are rescued from famine. Same as...[/quote]

Yep.

The difference is hurricanes and murdering tyrants are generally not choices made by people, rather they inflicted themselves on the people. I can empathize more with the notion of helping those people, if possible, although the methods our government has chosen come into question.

A corporate bail out, or bailing out dopes who finance things they can't afford, is another matter. We've been bailing out airlines for years instead of forcing them to change their flawed operating model to one that is financially viable, based on the notion that we cannot live without them. That's bullshit. Let the bankrupt ones die and new ones will emerge to meet the demand, just like the ones they replace did years ago.

 

[PlanetFrnd]

Yep.

The difference is hurricanes and murdering tyrants are generally not choices made by people, rather they inflicted themselves on the people. I can empathize more with the notion of helping those people, if possible, although the methods our government has chosen come into question.

A corporate bail out, or bailing out dopes who finance things they can't afford, is another matter. We've been bailing out airlines for years instead of forcing them to change their flawed operating model to one that is financially viable, based on the notion that we cannot live without them. That's bullshit. Let the bankrupt ones die and new ones will emerge to meet the demand, just like the ones they replace did years ago.

I generally agree, but I do empathize with having to make decisions on a net basis. Yes, to use your example, perhaps new airlines would eventually emerge, but at what cost to citizens? Would their be an extreme travel bottleneck if there is a lag between the the failure of some airlines and the emergence of others? If so, how long? And how much damage will that do to interstate commerce and/or international commerce? What will happen to prices if airlines are not subsidized? Will the cost/benefit calculus for the airlines make travel way too pricey for most Americans? If so, what will that do to the economies of resort areas like the coasts and skiing destinations? What will happen to the mechanics/pilots/attendants/etc. that were working for the airlines? What will the abrupt loss of thousands of jobs do to the economies of our major cities?

I mean, I know you get it, but economic volatility - which is bound to occur if we let everything completely to the markets - can do far-reaching damage to a nation if not buffered a little by the government.

So, what I mean by decisions on a net basis is the net effect of certain decisions like subisizing airlines or bailing out a bank or some sort of housing government action... there is alot for the government to think about to get to realize the net effect.