Nobel Economist Ed Prescott: "Don’t Subsidize Inefficiency.... Let These Businesses Go Bankrupt. They Gambled, They Lost. That’s Part Of Life" → Washingtons Blog
Nobel Economist Ed Prescott: "Don’t Subsidize Inefficiency.... Let These Businesses Go Bankrupt. They Gambled, They Lost. That’s Part Of Life" - Washingtons Blog

Monday, March 30, 2009

Nobel Economist Ed Prescott: "Don’t Subsidize Inefficiency.... Let These Businesses Go Bankrupt. They Gambled, They Lost. That’s Part Of Life"

Nobel economist Ed Prescott says:

Don’t subsidize inefficiency. Cut tax rates to get people to work more. This financial stuff is much ado about nothing. I don’t see any reason for the taxpayers to bail out Goldman Sachs in a roundabout way. Let these businesses go bankrupt. They gambled, they lost. That’s part of life.
Numerous economists agree with Prescott. See this, this, this, this and this.

3 comments:

  1. It's a popular sentiment and I agree within limits. The government should do what it can to see that the economy or the banking system do not collapse as a result of the gambling of executives. However, in doing so, it needs to make sure that executives, shareholders, other companies that invested in risky instruments lose their shirts.

    If a company or bank is too big to fail, it is too big. Take it over, break it up into manageable pieces, and sell it back to the private sector.

    ReplyDelete
  2. I second it!!

    Just let me go out of existence ASAP

    ReplyDelete
  3. A Nobel prize does not confer expert status on anyone anymore. If anything, it makes people suspicious. Look at all the liars, crooks, and murderers who have received a Nobel prize over the years. Mostly from the Left, too, that should tell you something. Nobel carries the same fishy smell as Rhodes Scholar these days.

    ReplyDelete

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