Keep Your Fallacies Straight

Russ Roberts discussed the bailout on Reason.tv, arguing it'll encourage more risk taking in the future. A commentator, Trumpit, accused Prof. Roberts of circular logic:

You state that the bailout will encourage more imprudent risktaking in the future leading to lower standard of living for the next generation. LOL. That's was the cause/reason for the bailout. I took an upper division math class and on the 1st exam the professor drew a big circle to make fun of my circular proof.

Let's take a moment to remember what circular logic is. Also known as begging the question, it occurs when "its conclusion is among its premises...assuming what it's trying to prove." The argument of the bailout goes like this:

1. The Congressional bailout implies imprudent risk taking is cheaper.
2. The financial sector seeks cheapness.
Thus
3. The financial sector will engage in more imprudent risk taking.

It would be circular if the argument was this:

1. The Congressional bailout implies imprudent risk taking is cheaper.
2. The bailout occurred.
Thus
3. Imprudent risk taking is cheaper.

It's not that circular logic is nonsense, it just doesn't say anything interesting.