Ugh
Ok, first off, no, I haven’t abandoned the blog. I’ll work on making a habit of posting more regularly.
Now for the ugh remark.
1. I’m not opposed to government intervention to ensure that economic markets serve democratic interests.
2. Moreover, given the nature of markets’ strengths and weaknesses, I expect these kinds of interventions.
3. I am whole heartedly rooting for, and voted for, our current administration.
But…
I cringed at the attacks on AIG bonuses, because our government cherry-picking private contracts to nullifying fundamentally erodes the rule of law.
And it was a surreal, WTF?! moment when I heard our President announcing that the US would back the car warranties of domestic automakers. Unlike having a stable banking system with available credit, the health of the US auto industry is not a necessary condition for future, long-term US economic success. I don’t see warranty assurance as anywhere near a core cause for declining auto purchases. And this kind of heavy-handed government involvement in subsidizing an industry is bound to have offsetting trade restriction repercussions over time. The market dropped the value of US automakers at the news, and I think the market was right.
Unchecked markets weren’t the answer, but neither is the government attempting to micro-manage corporations.