Economics 101: Skin in the game

All the ranting and raving we’ve been doing about sound vs. doomed-to-fail economic policy on these pages for the past two years is summed up in a succinct, 3-1/2 minute manner in this video below from reason.tv.




We’re glad she hits on the concept of skin in the game, for an economic system cannot operate as it should if there are no consequences for risky business practices which is precisely what we have seen in this country’s own economy since the advent of Bailout Nation.

The endless bailouts and horrible demand-side programs like Cash for Clunkers have distorted the markets and have prolonged this recession and, in fact, are leading it to a double-dip recession.