This is a core tenet of our federal republican democracy—the concept that us American citizens are the ones primarily—and most often solely—responsible for the outcomes of our decisions and our actions. This is a tenet that applies just as firmly in our fundamentally capitalist economy to our businesses. In particular, for this post, it applies to our banks, large, small, and in between.

Or, it should apply. Dangerously, our banks, particularly our small and mid-sized banks, would be relieved of that responsibility under legislation that Tennessee Republican Senator Bill Hagerty, who should know better, and Maryland’s Progressive-Democrat Senator Angela Alsobrooks, who is merely acting on her party’s big and bigger government bent, are proposing. That legislation would raise the FDIC’s deposit guarantee from $250,000 per depositor’s account to $10 million.

The editors of The Wall Street Journal have the right of it on this one.

The truth is that a higher insurance limit will increase moral hazard and make the banking system less sound, which will hurt all Americans.

Because

It would also encourage more risk-taking since banks will have to worry less about runs.

Massachusetts’ Progressive-Democrat Senator Elizabeth Warren as recently as 2023:

We have to do this because these banks are under-regulated, and if we lift the cap, we are requiring—or relying even more heavily on the regulators to do their jobs.

Here is the monarchist Party’s purpose revealed and now pushed by Alsobrooks: an ever more intrusive and controlling central government.

The proposed legislation is an idea whose time never will be, and the proposed legislation needs to be scotched in committee, if not before.