Polls
FDIC Expansion Threatens Free Market Principles
Liberty Check
Proposals to raise the FDIC insurance limit risk expanding government reach and eroding personal responsibility. The current $250,000 limit already protects nearly every account holder without distorting incentives.
- The FDIC was established to protect depositors, but most small businesses and individuals are already covered by the present limit.
- Boosting coverage to $10 million would primarily benefit large entities, weaken market discipline, and invite moral hazard as banks and corporations rely more on taxpayer-backed guarantees.
- There is no evidence that the largest banks are overtaking small and mid-sized banks, nor justification for further government intervention following recent bank failures.
Americans must demand policies that maintain free market competition and ensure government intervention remains limited. Sound economic policy means defending the constitutional principles of responsibility and limited government.
Our freedoms depend on staying vigilant.
