Subsidies Have Consequences

The trouble with the ruling class is that it doesn't have a clue about business.  To an Obami like Jay Carney, White House press secretary, the failure of corporate crony Solyndra is "just the way business works."  You win some, you lose some. Only, of course, the way business works is that when you lose, it's supposed to be your money that gets lost.  As Matthew Continetti points out, under Obamian crony capitalism with its subsidies and its loan guarantees, the crony capitalist "privatizes any gain while socializing the risk."  No wonder financiers and CEOs are such enthusiastic campaign contributors.  No wonder the OWS protesters are so confused. But subsidies have consequences when it's time to start "socializing the risk."  That's what the Meltdown of 2008 was all about.  Politicians had subsidized mortgage credit for decades, and when that wasn't enough, they set goals and timetables to force banks to lend to unqualified buyers.  Higher...(Read Full Article)

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