A Windfall Bailout
As I pumped sub-$2.00-per-gallon gas into my work van this morning, shortly after having listened to a debate about a GM bailout on Cavuto this morning while doing the dishes, something occurred to me that I’m surprised to have not heard mentioned: There’s a common theme that runs from the bailout mentality through the idea of a windfall profits tax. In effect, the philosophy dictates that the people who run and invest in businesses are only responsible for a range of their successes and failures. Any remuneration above that range should be claimed by the government, and any losses below it ought to be reimbursed.
There’s a well-known S-word for such a view of commerce.