The accurate name for this approach is Lemon Socialism
, meaning in this case: financial sector executives get the upside when things go well; you (the taxpayer, the unemployed, and the dispossessed) own the lemons when the economy turns down.
The word "socialism" is used with gross imprecision, but if it is to be employed, DeFazio would emerge as a consistent enemy of the only type of socialism practiced widely in the United States - lemon socialism
, the public takeover of debts and other obligations of failing enterprises with no corresponding public claim on their profits.
Yes, this is what might be called "lemon socialism
," creating grave dangers for corporate control, posing a threat of large-scale corruption, and establishing a precedent for intervention that could be very dangerous down the road.
As welfare for the rich, this bailout--coming at the very moment when Congress is tightening bankruptcy rules for ordinary citizens--far exceeds the legendary government rescue of Chrysler a generation ago, which at least could be seen as a kind of lemon socialism
that saved jobs and produced cars.
government is headed down the road toward socialism, as President Obama's most excitable critics claim, it's socialism of a sour variety: lemon socialism
. The public has taken control only of losing enterprises, leaving all profitable ones in private hands.
There is always the possibility of failure with "lemon socialism
'--the public takeover of businesses that have been doomed by private enterprise.
A plan that encourages private companies to take the most profitable and least risky customers, leaving the rest to the government, looks like lemon socialism