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Moral Hazards Only For Thee

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Yes:

As we’ve been told for years, the devastating impact on the economy if Uncle Jim gets a wee principal reduction on his Riverside McMansion would last for decades, while perpetually bailing out people who love to light money on fire is the secret to strengthening modern capitalism.

I believe the theory is the same as the one that holds that money causes rich people to work harder but causes poor people to stop working. And then there’s the cousin of this logic — a schoolteacher or civil servant in major urban area making $55,000 a year is living in unimaginable luxury, but someone making $400,000 a year is living a hardscrabble lower-middle-class existence and needs to be bailed out with huge tax cuts pronto.

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