Thursday, November 20, 2008

Sununu Against Auto Bailout

In the morning's Union Leader, our outgoing Senator nails why the currently proposed bailout in an awful idea:

It is simply not the role or the responsibility of government to provide subsidies, support or special benefits to specific businesses. Using government funds for such purposes is unfair to taxpayers, especially those working for businesses that are left out. Instead, the government's role should be to create the best possible environment for investment, job creation and economic growth, and then to let businesses compete for customers on a level playing field.

Government subsidies for the auto manufacturers or any other business also create a moral hazard -- the significant risk that bad behavior and investments will only be encouraged in the future. We have seen the very real implications of moral hazard in the spectacular failures of Fannie Mae and Freddie Mac.

Senator Sununu's support of the Wall Street bailout package was both bad policy and bad politics, though not enough to have changed the outcome of his race. Glad to see he's making such a clear case against this latest incarnation.

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