Tuesday, September 30, 2008

Did Lack of Earmarks Kill the Bailout?

One technique that House leadership has traditionally used to corral votes for unpopular legislation is the earmark. In exchange for a reluctant "yes" vote from a member in a state like Texas, House leaders from Tip O'Neill to Tom DeLay would either put projects for that district in the bill or promise them projects in a later bill.

This kind of exchange is completely unethical--actually it's bribery.

But it did get a lot of legislation passed.

If Pelosi and Boehner didn't think they could do earmarks in the $700 billion bailout, that might be one of the reasons why it failed.

Personally, I'd rather pay for a lot of earmarks than an economic depression.

Pork Anyone?

1 comment:

E.N. Collins said...

I came to a rather libertarian conclusion last night and have slept soundly sense - the market will take care of itself bankruptcies just mean assets aquired and it punishes those who made these risky moves rather than rewarding them - if we go through with the bailout we set a far more frightening concept in the market and that is, it is devoid of risk and rewards these kind of actions - it will work itself out - look into "japans lost decade" a very similar situation - a great read can be found here - http://www.nakedcapitalism.com/2008/07/will-japans-lost-decade-become-norm.html