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Saturday, November 29, 2008
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Where Was My Bailout?

As this Reason video points out, we've had bubbles burst before which harmed entire industries before.  In fact, when the dot com bubble burst, I was personally effected and was out of work for about 6 months.  The company I worked for was not a "dot com" per se, but when I was laid off, there was such a glut in the market with all the dot com guys out there, that it was very hard to get a job.  Nobody came to my aid then.  So why can't these companies do what the internet companies did then?  The bad ones shut down, the good ones re-capitalize around a profitable business, and the economy moves forward?

# Posted at 11:44 AM by Nick  |  Comment Feed Link 2 Comments  |  No Trackbacks

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Monday, December 01, 2008 8:12:33 PM (Central Standard Time, UTC-06:00)
I'm not an economist and I'm not certain if the bailouts are necessarily good or bad.

But, I do suspect that you did get some help while you were unemployed for 6 months. You were probably entitled to unemployment benefits and I would guess you took advantage of them. All employers are mandated to purchase unemployment insurance by the government which are then extended to the employee if they find themselves out of a job...

Two different things I suppose. And I understand unemployment benefits are a far stretch from a bailout. But, my point is while we do live in a capitalistic society it is far from a pure free market. Our nation provides for a watered down form of capitalism and has for some time. Throughout the 1800's the federal government protected U.S. companies with tariffs on imported goods (to a lesser extent today). Now the government protects companies with financing.

You will not benefit directly from this latest form of government financing of private companies. But, I am sure virtually every friend or family member who has purchased a home has benefited from another form of government financing; the implicit government backing of their loan.
Ben
Monday, December 01, 2008 9:35:16 PM (Central Standard Time, UTC-06:00)
Unemployment insurance is a far cry from a bailout. First of all, auto workers would also get the same benefit as I did, so why can't they deal with unemployment like I did? Secondly, unemployment "insurance" is actually withheld from your paycheck as well. So I actually was getting my own damn money back! That's hardly a bailout.
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