Funny how Republicans–and the Democrats who love them–have no problem running up the national debt for tax cuts for the ultra-rich or to bailout corporate failures. Oh wait, that’s not funny. More like pathetic.
That amounts to swapping taxpayers’ “cash for trash,” Stiglitz said yesterday in a panel discussion at the World Economic Forum in Davos, Switzerland. “You shouldn’t chase good money after bad. We’re talking about a national debt that’s very hard to manage.”
Stiglitz, a professor at Columbia University in New York and a former adviser to President Bill Clinton, says the plan would leave taxpayers paying for years of excess lending by banks. It would also deprive the government of money that would have been better spent shoring up Social Security, he said.
But wait, there’s more.
“I agree about the moral, ethical fallout, but you’ve got to face the music and someone has to take the loss,” said Gurria, Mexico’s former finance minister. “It’s the only way to jumpstart the economy.”
Right and who should take the loss?
The reckless gamblers at the top of our financial system, who still managed to spend millions on super-bowl sponsorships, despite receiving one round of bailout money, or the American taxpayers who had nothing to do with the banks’ “financial innovating” and still get no ownership stake in the financial institutions they are saving.
Well, if you are a true blue capitalist, the answer should be obvious—the taxpayers of course.