Tuesday, 5 March 2013

Deposit insurance is not socialism

It is strange to be a socialist if the government you support prefers to subsidise the banks than the people. If the government protects the banks by providing deposit insurance it is helping them at the cost of the rest of the economy so it is helping banks at the cost of everyone else. Since there is deposit insurance we can say that to support the government is to support the banks at the expense of the poor... socialism doesn't help the poor if there is deposit insurance. Deposit insurance doesn't help the poor and if the government supports deposit insurance then it is not socialist (if socialism is good for the poor). If the poor benefit from socialism then deposit insurance is not socialism.

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