Spelled out here and definitely worth investigating. It is amazing how intense the pressure is for us to enact legislation right now in order to engineer a bailout of the financial service sector–and a bailout that will dramatically increase federal intervention in the economy, socialize companies and make a mockery of free market principles.
It does not have to be this way. There are ways to help the economy quickly and maintain our free market credentials in the process. To be sure, they involve TAX CUTS–those supposedly horrid things that we supposedly ought to be wary of, but which, in fact, actually work in stimulating the economy and helping companies big and small maintain healthy balance sheets. I would say, however, that tax cuts that work in stimulating the economy and help bring about healthy balance sheets are infinitely preferable to socializing the economy and landing vicious body blows on the philosophy of free markets.
Republicans in Congress should adopt this plan. The McCain campaign should adopt this plan and the Bush Administration should withdraw its own proposal in favor of the plan. The regulatory state has its champions, seeking to take advantage of this crisis to nationalize the economy in a manner that would exceed their wildest dreams. The free market deserves champions as well in this fight. And free market champions are the ones that deserve to win in the end.