« Lasky, Feldman, Rubin on the air |
Blog Home Page
| Taking PC to deadly limits »
November 26, 2008
The cost of the bailout - in perspective
Ethel C. Fenig
As the late Senator Everett Dirksen (R-IL) once said, "A million here, a million there and pretty soon you're talking about a lot of money." That philosophy came to mind hearing every day about a trillion here, a trillion there for a government sponsored "bailout" of this or that vital industry.
So how much money is this; how big are these numbers with all the zeroes after them? Barry Ritholz puts it all in scary context.
The current Credit Crisis bailout is now the largest outlay In American history.
Jim Bianco of Bianco Research crunched the inflation adjusted numbers. The bailout has cost more than all ( italics added) of these big budget government expenditures - combined:
• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
TOTAL: $3.92 trillion
Or to put it in a very personal way
Bloomberg calculates the total amount the taxpayer is on the hook for is $7.76 trillion, or $24,000 for every man woman and child in the country. (Data breakdown is here)
Ritholz concludes
Regardless, no matter you calculate it, we are talking about an ungodly amount of money.
It is not even a godly amount.
Do all these "bailouts" delay the inevitable; extending and intensifying the inevitable pain even more? We shall see.
hat tip: NRO The Corner
|
|
|
Share