Charity with Other People’s Money
When things go wrong for people, society ought at least to weight the costs of helping, even when the problems are wrapped up in the esoteric complexities of modern finance, but when I read news like this, I can’t help but wonder from where the money’s coming:
The legislation is likely to draw on elements of the Democratic plan such as letting states issue $10 billion in tax-exempt bonds to refinance subprime loans and permitting homebuilders and other money-losing businesses to reclaim previously paid taxes.
Democrats also want to provide $4 billion to states to buy up and refurbish foreclosed homes, a plan that the administration opposes as a bailout for lenders and speculators. …
There is also bipartisan backing for $200 million in new money for debt counselors to help homeowners negotiate with lenders.
I’m sympathetic, of course, to any plan that solves problems by cutting or returning taxes, but if these steps are worth taking, shouldn’t there be at least some discussion of what other area of government is going to be sacrificed?