I keep reading commentary, even in respected conservative forums, that Paulson’s gigantic bailout plan is bad, and admittedly un-conservative, but that we must do “something” and the alternative is too dreadful to contemplate.
As Colonel Potter used to say, “Horse-hockey!”
Protecting the long-term value of the American dollar is more important than a quick fix. So is teaching our bankers, traders and lawmakers that the government is not going to bail them out of future messes. If there’s a pot of government gold at the end of every financial rainbow, what’s to stop everyone from chasing the green leprechaun again?
Federal action is warranted, but the focus should be less on debt and more on protecting present and future capital. If we go about this rationally and take this opportunity to promote pro-growth policies and tax reform, investors will respond to the prospect of higher future returns. It’s that simple.
Conservatives: we cannot abandon our principles in times of crisis. We must remain steady at the wheel.