Irrationalism all over

Some say that roots of current recession have to do with the fact that banks and other financial institutions acted against their own self-interest. That definetely seems to be the case. Either knowingly (or) unknowingly (or) yieding to the pressure of stockholders to provide quick short-term returns, companies did behave irrationally against their own interest.

However, when Govt institutions have been proven to be corrupt over and over again, people still look up to the Govt and are even willing to give them more money to solve their problems. Isn't that irrational? When Govt keeps increasing their expenses, which is the root cause of deficits, people still are willing to give them more money over and over again. It is in people's best interest to ask Govt (no matter who is in power) to cut down costs instead of asking them to balance the budget. It's not a question of belief in individual or collective responsibility. It's a question of accountability and fiscal discipline. People are willing to pour their hard earned money over and over again in something that costs them more and more.

Yes, I agree. Sometimes, people behave irrationally.