Ted Cruz: Conservative Justification For Bailout By Government Amidst Wuhanvirus Pandemic
Keneci Channel.
President Trump proposed a fiscal bailout to compensate individuals and small businesses affected by Wuhanvirus emergency measures across the United States. Congress is currently debating the proposal and are trying to come up with appropriate legislation.
Leftists generally support such big government spending. They believe that giving out monetary handouts to individuals is a way to redistribute wealth away from the rich. A way to punish the rich for not sharing their wealth. Never mind that the rich pay the bulk of the taxes levied by government.
Conservatives on the other hand cite empirical data showing that such big government spending in most cases doesn't work. Conservatives for example, contend that various welfare programs implemented to help the black community have failed.
Conservatives wary of such wasteful government spending, have been debating the rationale for, and efficacy of the bailout proposal especially the corporate bailout part of the proposal.
In an episode of the popular podcast 'Verdict With Ted Cruz,' host Michael Knowles asked the Texas Senator, "it sounds as though we're gonna get some sort of bailout, both for individuals and for companies...how should conservatives feel about this?"
Cruz argues that there is a difference between Trump administration's proposed bailout and the bailout under President Obanma after the 2008 global financial crisis.
The senator said, "the financial meltdown[in 2008] was caused in significant part by the conduct of the financial sector. And so I think a lot of people rightly felt, wait a second, these guys are going to a casino, they're gambling with the houses' money. If they win they get rich and fly in private jets and if they lose the taxpayer comes and bails them out. I mean it was, and felt like a rigged system.
Cruz argued that if the government is telling individuals and businesses to essentially stop earning a living, then there may be a role for the government in alleviating the resulting financial and social problems.
"It's worth pointing out, this is very different. I mean, you know, if you own a hotel, it's not your fault there's a global pandemic. You didn't do anything to cause this" the senator said.
He said, "a great many of these[financial] harms are caused by government....Look, if you own a small business, you own a restaurant, and suddenly the city government has said, your customers can't come in. That's not your fault..."
Cruz argues, "I do think there's a conservative justification for compensating businesses, for compensating job creators for the harms that are caused by the government in response to a disaster."
The senator, a constitutional scholar also made a case based on the Takings clause of the United States constitution.