Mismanaged Governments Get Bailouts

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The Ambassador of Ukraine says “Of course, $27 billion is only the minimum [IMF] rescue package for the Ukrainian economy…”

It’s Ukraine’s government that’s getting the loans. The economy is hostage to Ukraine’s mismanaged government. Ukraine’s government would collapse without these loans.

Bailouts of governments are the same as bailouts of any bank or company, financial or industrial. They reward incompetence, corruption, theft, and wrong policies.

If people insist on having a government that makes a variety of collective decisions for them, they’d be wise to prevent it from issuing public debt constitutionally. That’s just for starters. To prevent mismanagement, they’d also have to limit the government’s tax take. They’d best have referenda on spending programs. They’d have to decide in advance on how they plan to defend themselves. And on and on. Controlling government is an endeavor that cannot be shuffled off or reduced to voting on a constitution written by statists. People worldwide, including Americans, haven’t even advanced to the condition of thinking about how to control governments, much less getting rid of them altogether.

6:05 pm on June 3, 2014