A bailout would destroy jobs

November 20, 2008 | Jim Vicevich | |

You need to do a little critical thinking (remember college) when you read this … but for the most part I find this sound economic theory. Maybe I should ask Professor Williams.

Jim Lingren write over at Volokh.com

Making bad, uneconomic investments in failing industries does not, on balance, preserve jobs; it tends to destroy more jobs – and more good jobs – than it saves. If you give money to failing industries to save jobs, then you are probably taking even more jobs away from other industries who would hire or retain workers but for their higher expenses. In essence, throwing money down a hole may preserve jobs in the short term but should lose jobs in the medium and long term.

Via Instapundit

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Jim Vicevich

Jim is a veteran broadcaster and conservative/libertarian blogger with more than 25 years experience in TV and radio. Jim's was the long-term host of The Jim Vicevich Show on WTIC 1080 in Hartford from 2004 through 2019. Prior to radio, Jim worked as a business and financial reporter for NBC30 - the NBC owned TV station in Hartford - and as business editor at WFSB-TV in Hartford for 14 years while earning six Emmy nominations and three Telly Awards.

2 Comments

  1. Dimsdale on November 20, 2008 at 6:06 am

    A bailout is a bandaid: it covers up an ugly reality. What is needed is surgery, in the form of a reorganiazation, to cut out the diseased tissue (agreements and contracts) and preserve the healthy tissue.



  2. NICK on November 25, 2008 at 7:52 am

    Hook those against a bailout to a lie detector, and you would see a whole bunch of revenge. People want to see those who weren't financial responsible, those who the public deem earning more than they should (88$ an hour, to put in a rearview mirror), and greedy CEO's (I know thats a myth, right Jim. I mean, Enron didn't really occur) and they want to see them suffer. Me? I just don't want to suffer any further. If these people got away with it, good for them. They'll pay later.

    Bailout will cost jobs? Yeah, and the media IS NOT left leaning. BS to both.



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