More ramblings about the bailout.
How many times have heard this line?
"The economy doesn't need so many programmers". That was 2001, and we did in fact have a glut of programmers. Did anyone propose a $500 billion package to bail out failing IT companies, threatening unemployment, recession, depression and end of the world if the bailout fails to pass?
"The economy doesn't need so many scientists". That was early 90s. We did produce too many engineers and other scientists, which resulted in unemployement and, yes, in recession. The Wall Street response to those affected? Sorry, bad luck, you must forget your old set of skills and look for employment in the professions the market currently needs, and what it needs now is babysitters and home attendants.
"The economy doesn't need so many manual workers". We still hear it every day. The advise from captains of Wall Street? Well, no advise. Just look for jobs in...well, we don't know. The demand is not very strong at the moment. Just look for jobs somewhere, OK? Maybe you can get a job teaching people how to get jobs. Or start your own business, or whatever. There should be something available. And now get lost and don't pester us with your little problems.
But today, we are told, things are different. Becuase financial workers are special. We cannot let them go, on the contrary, we must employ them through good times and bad, whether we need them or not. It would be unpatriotic to say, "the market doesn't need so many financial specialists, mortgage brokers and security analysts". When their jobs are in danger, we mush shell out a hefty sum of $700 billion so that they can keeps their salaries and bonuses.
My proposal is to throw out Paulson's plan and treat financial sector employees exactly the same way we treat employees of any other contracting, downsizing industry: no bailouts of any kind, just 6 months of unemployment benefits paid for by the government, and then off you go in search of your new job. We did that to dozens of other industries, and as you can see, the sky hasn't fallen, and the good ol' USA is still around.