The Importance of Failure

There is much discussion these days about bailouts. Are they needed? Are they just? I say no on both counts. Yet many economists, politicians, and businessmen tell us that bailouts are needed to prevent catastrophic economic collapse. Without commenting on the justice of bailouts, they warn that we are facing massive economic pain if we stand aside and let markets run their course. Bailouts can staunch this pain, they claim, and restore order and calm to the economy.