Bailout Bonanza

Posted by Jason Ibrahim

By now, you're surely aware of the bailout craze sweeping the nation. Financial services companies, banks, automobile manufacturers, rental car companies, and governors have all taken their place at the federal trough. In a masterful display of hubris, even pornographers have come forward to plead for the necessity of the services they provide.

Well, ever at the forefront of national issues, Pennsylvania has made its own share of zealous appeals to Washington. Not only has our politically active governor been promoting a federal bailout of states; Boscov's has also stated its need for a piece of the pie. Now, some will surely say that Boscov's is not asking for a bailout; what they need is a loan, in part from Blair County, that will be secured by the federal government. I say that a bailout by any other name still has a big price tag, and for the following reasons:

An infusion of government cash into Boscov's would only be rewarding failure, and delaying the inevitable. People will say that Mr. Boscov's recent buyback of his namesake is the only reason he requires a loan in these difficult times. I say if he can make a success of it once, he can do it again. If he can't, then he will keep coming back to the government for cash, and Boscov's will turn from a profitable business into a social service agency. Eighty years ago this would have been a "new deal"; but not today.

Government money would be unnecessary if Mr. Boscov's business was as sound as he'd like us to think. If he can't get the money from bankers, people who like lending money more than the rest of us like breathing, we shouldn't be under any presumptions of getting paid back. In that case, we should call it what it is: a gift.

Finally, advocates of the Boscov's loan like to remind us that it will be secured by Washington, not Hollidaysburg. I would remind them that I am an American citizen as much as I am a Blair county resident, so in the event of non-payment, I will be footing the bill either way.

Let me ask you this: if I decide that these financial times are too difficult for me at my current pay grade, but I'm too much a credit risk to get a loan from the bank, what am I to do? Conservatives would say I need to tighten my belt and do everything I can to make ends meet. That's my responsibility, and Boscov's should be held to no less a standard.

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