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Not if the bank gets bailed out with taxpayer money.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Oct 14th, 2009 at 08:45:10 PM EST
[ Parent ]
Unless the bailout were completely funded by taxing the poor instead of the rich.  This is unlikely to be the case because progressive taxation exists in all OECD countries (even in the US, since taxation is even more progressive in the US than Europe, oddly enough), and any tax increases to pay for stimulus deficits will almost certainly have to come in the form of increasing taxes on wealthier people.  This means that bank bailouts effectively tax most wealthy people in order to bail out some wealthy people, so I think it is still is unlikely to affect the net distribution of wealth to the poor in the form of loan write offs.
by santiago on Thu Oct 15th, 2009 at 10:29:42 AM EST
[ Parent ]

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