One of the weirder ideas I\u2019ve encountered on the libertarian right is that deposit insurance is evil. Not that it\u2019s unsound or misleading, but that its goals are immoral. There are people who want\u00a0depositors to be ruined if a bank fails, and that\u2019s just what you get for not personally auditing your bank, sucker. The thought of someone getting money out of a failed bank makes them legit angry. Maybe because they put their own money into surivival gear and won\u2019t get to use it? idk.
I\u2019d say it\u2019s related to the central role risk plays in the moral imaginary \u2013 where the ancients might look down on moneylending as immoral \u201cmoney reproducing itself\u201d without any effort on behalf of the lender, and socialists might say that \u201clabor is the source of all wealth\u201d, the libertarians hold that capitalists (incl. lenders, incl. those lending to banks as \u201cdepositors\u201d) are doing something vital to morally deserve profit, and that\u2019s bearing risk. And without that (it\u2019s the same dynamic that recoils at bailouts and \u201ccrony capitalism\u201d) you are the undeserving caricature being wrongly rewarded for nothing more than having money already.
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