The poorest will subsidise the rich

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The FT has a fascinating, and appropriately depressing article by Wolfgang M?ºnchau this morning. In it he says:

To pass an extremely generous financial rescue package but refuse to accept the logic of a fiscal stimulus, as European Union leaders did last week, is both inefficient and inequitable. It is inefficient because an unnecessarily deep recession would have a hugely negative impact on the health of financial institutions. And it is inequitable as the present approach amounts to a large transfer of resources from lower to higher income earners.

He is absolutely correct about that last point.

It's worth reading in full.