The Apotheosis of John Rawls

Today's stock market tumble did not seem imminent until the afternoon; indeed, investors were generally optimistic in the morning about the chances of receiving a much-needed injection of 700 billion dollars from Congress. President Bush (a Republican), Henry Paulson (an economist), Nancy Pelosi (a Democrat), and the leaders of the Republicans in the Senate and House (fiscally conservative, Bush-hatin' cowboys), all seemed to agree that the stimulus package was a necessary if unfortunate measure. They even gave speeches (in the case of Pelosi, two of them) declaring their belief that the bill would pass. As the votes started coming in however, traders got more and more nervous. Eventually, the package was defeated. Congress packed up and went home for the holiday. The DOW plummeted by a lucky 777 points, or 7 percent of its total. What happened?

The underlying problem is that the idea of the public funding a 700 billion dollar bailout for greedy bankers was unconscionable for House Republicans and some Democrats. Surely they felt that to pay wealthy bankers 700 billion dollars for billions in assets would be to reward them twice over, which is not the role of the government, you say? That to reward those already gifted in the arts of magical numbers is contrary to the interests of the poorest? Nay, nay, it was simply a case of self-interest. Even though the stimulus bill is vital for the economy's stability, some Republicans are so afraid of being labeled a "tax-raiser" by their constituents that they will cause millions of these same folks to lose their employment. These politicians will do anything to get elected, but they would do better by their country if they remembered: one must sometimes aid the rich to save the poor.

http://www.nytimes.com/2008/09/30/business/30bailout.html?hp

Rawls, John. A Theory of Justice. New York: Harvard UP, 2005.