The Politics of Bailouts
Cato Podcast
Cato Institute
4.5 • 979 Ratings
🗓️ 29 September 2008
⏱️ 9 minutes
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Transcript
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| 0:00.0 | This is a kido special podcast. I'm Kila Brown. The bailout eking its way through |
| 0:07.4 | Congress underscores that the calculus lawmakers use in dealing with big problems |
| 0:12.4 | often ends in a decision to deny the problem exists |
| 0:16.7 | or when they believe action is inevitable to kick the problem down the road for the next batch |
| 0:22.0 | of lawmakers to handle. |
| 0:23.4 | Unfortunately, according to John Samples, director of the Cato Institute's |
| 0:27.1 | Center for Representative Government, when lawmakers kick the problem down the road, |
| 0:31.4 | they often make it much much bigger. |
| 0:35.0 | Both parties face a problem. |
| 0:37.0 | We're a month from an election and they don't want to go in, |
| 0:41.0 | nobody wants to go into the election if there's a financial meltdown, which they are afraid is going to happen. |
| 0:47.0 | Or if there's a risk of that. So they have a, well, everybody's got a strong motivation to pass the bailout plan or something that they |
| 0:57.0 | think is going to work. But they also have another big problem that's come about this week, |
| 1:02.1 | which is it's very apparent that the |
| 1:03.8 | voters hate the bailout plan which they associate with a bailout of Wall Street |
| 1:09.2 | and people who made big mistakes and should have to pay for those big mistakes. |
| 1:14.6 | So the problem that you face is if you're the dominant party or the Democrats, you can |
| 1:19.6 | pass this bailout plan, but then when you go into the election the Republican |
| 1:24.0 | candidates run against you for having bailed out Wall Street. Right? I mean |
| 1:29.2 | Republicans would love to do that because that's what's usually used against them on the one hand. |
| 1:34.9 | So the Democrats want the Republicans to vote for it also, but the Republicans of course would |
| 1:41.0 | like to have something for the election but they also face a problem |
... |
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