FreedomWorks Statement in Opposition to Bank Bailouts
WASHINGTON, D.C. — In response to suggestions of bailouts to remedy the collapse of Silicon Valley Bank, among others, Adam Brandon, FreedomWorks President, commented:
“If we have learned anything from the 2007-2008 financial crisis, it’s that we cannot afford to continue to bail out financial institutions and corporations. Such bailouts are a perverse incentive that create market inefficiencies. We cannot continue to safeguard banks with guarantees of a taxpayer-funded bailout should things go wrong, especially considering that FDIC coverage is meant to protect smaller investors.”
“Furthermore, despite what President Biden might say, any such bailout will see the American taxpayer foot the bill. A bailout of Silicon Valley Bank would amount to upwards of a $130 billion check from the American taxpayer. Such a bailout will further exacerbate the addiction that Washington, D.C. has to spending and contribute to inflation. There is no moral case to hold Americans accountable for the reckless fiscal disposition of Congress and President Biden when our national debt stands at $32 trillion and growing.”
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