UPDATE: Bailout fails in House (228 NO/205 YES)
BUT Paulson will try again.
Original post this morning:
This is not about economic competence, moral hazard, perverse incentive, or any of the other cynosures of neoliberal policy wonkery. And preserve us from the absurd claim that this is some kind of socialism. It is about class power. If they wanted to resuscitate the economy, here are some possibile uses for that $700bn. Think of households and public sector institutions that are failing largely because the system is failing them: they couldn't put $700bn to better use? How about just nationalising the healthcare system? All of that would certainly stimulate the economy, provide jobs and help people who really are in need, but it would also risk revivifying the exiguous social democratic constraints on the operations of capital. You give people the idea that the tax base should be used in their interests, to give them secure jobs with decent pay, public services, well-funded inner city schools, any of that, they might never be away from the till with their hands out. Greedy taxpayers have to learn that this money is earmarked for conscientious wealth creators and their warriors, not for sloths with their heads stuck in the bargain bucket.