Of course there is no concise answer to this question. On the good side the bailout will help by eventually loosening up credit-lines for small business owners and maintain low interest rates on these loans. Indirectly, assisting AIG helps the many small business owners who have policies with the insurance giant keep those policies. It also assists in bringing confidence back to the general public, stabilize the markets, and get people to start spending.

On the down side, taxpayers are the proverbial hook for financing the bailout.   If all goes well and AIG pays back the government and some funds are recovered from the sub prime mortgages then the taxpayers will not be hurt as bad.  Although if that does not happen then there are only two ways the government can recoup. Increase revenue (taxes) or decrease spending (defense, various programs, infrastructure, education, etc.).