The Obama administration has proposed a new program that would give $30 billion to banks at below market interest rates. The Post briefly discusses the merits of this program, noting that many businesses are not borrowing because they don’t have demand for their product, however the article does not include the views of anyone who makes the obvious point: this is another subsidy to the banking industry.

While the beneficiaries of this subsidy will be relatively smaller banks (assets of less than $10 billion), many voters may be troubled by the prospect of giving yet more subsidies to the financial industry.

–Dean Baker

Dean Baker is senior economist at the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, including Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Read more about Dean.