After much thought on the matter, I have decided that I am against the bailout plan as it is currently being constructed by Congress.
When this plan was first put forth by Hank Paulson, I mildly supported it. Most people don't know it, but last week the credit markets were essentially frozen, threatening to bring all sorts of business to a screeching halt. Without short-term loans to get, thousands of companies would be unable to operate. The problem mainly comes from the huge amount of sketchy assets owned by investment banks, including mortgage-backed securities based on bad home loans. The bailout plan would buy some of these assets and provide much-needed liquidity to the market. Thus I begrudingly supported the plan as a terrible but necessary laxative for the economy.
Now that Congress has got its grubby little hands on it, the plan has become a special-interest bonanza with many Democrats trying to radically redefine the plan to make it an even more socialist endeavour. Some are suggesting that any profits realized from the later selling of the questionable assets should be redistributed, thus turning the whole thing into a perfect socialist transfer of wealth. They're even suggesting some of it go to help low-income people buy houses. Yes, they are actually talking about helping more people get mortgages they can't afford. You can't make this stuff up.
With this bailout plan turning into a deadly behemoth of big government, and with the price tag completely unknown but potentially going into the trillions of dollars, there is absolutely no way a conservative can support it. To put the cost in perspective, it would likely exceed the total amount of currency now being circulated. That is, more money than you'd have if you piled up every bill and coin out there. The inflation that would be caused by this action is staggering. The dollar would be massively weakened, and foreign investment would surely go away. Add to that the fact that the federal government would essentially own millions of mortgages and even properties, and you have an expansion in government size and scope that is terrifying.
The true solution to this problem, like so many others, is unleashing the free market. The unfortunate thing is that so much of a bubble has been built up that we would be in for a very rough ride. True fiscal restraint, and true conservative economic principle, is tough like that. It is sort of like vegetables, in that it is good for you in the end, even if at the moment you have to eat broccoli instead of ice cream. We've gorged on ice cream for so long as if it would never make us fat and cause us health problems. But just like obese people need an agressive, sometimes grueling diet, we need that for our economy. We will recover but for now we need to cut back drastically. No more excessive houses, insane credit card bills, and risky investments that no one even understands. And for God's sake, NO MORE GOVERNMENT SPENDING!!! I honestly believe that for anyone to suggest new, lavish programs such as universal college or health care is morally reprehensible, unless one's goal is to radically change the county forever, which I believe is indeed the goal of Barack Obama and friends.
Unfortunately, given the nature of government, we are likely to see some monstrous creature emerge from meetings this weekend. Politicians of all stripes have a deep need to feel like they are "doing something," even if their actions are harmful or useless. The president and far too many Republicans have embraced big government ideas, and of course the Democrats are eager to control more of the private market and manipulate things as they desire. In a time when many politicians and cronies should be put in jail for fraud and mismanagement, no one is likely to go down because the culprits are everywhere. We are facing a time when our government and our economy are on the brink of total failure, and one can only imagine the consequences for the average person. There simply isn't much more we can take.