“… The auto industry is a critical part of the nation’s economy. But … by no means the only critical part. If we undertake to guarantee its survival, must we (or should we) guarantee the survival of other major industries as well? And how shall we choose which to subsidize … Pure capitalistic theory … is very unsentimental about the answer. Let any unsuccessful economic enterprise go under. But we won’t, and we shouldn’t, enforce that draconian principle without exceptions. Economic hardships should be eased where possible, with due recognition that uneconomic practices must ultimately be eliminated. … a democratic society isn’t, and probably can’t be, a strictly and uncompromisingly capitalist one. Pure capitalism is based on a correct analysis of economics, but its prescriptions must be modified by an understanding of human nature that takes other necessities into account. To make such modifications is not to betray capitalism, but simply to understand that its rules must recognize other, and equally imperative, human needs.”
Source: The Conservative Advocate,”To Bail Out or Not” (December 16, 2008)
Keywords: economics,governance,policy
