Americans deep in their soul just don't like bailouts. New Yorkers asked about the government saving thousands of New Yorkers jobs by bailing out Citibank said overwhelmingly they don't like it. Another survey last month showed 3 out of 4 Americans don't think the bank bailouts will work.
I'm going to float some ideas here that may make some readers angry. But if you'll stay with me till the end I think I'll win you back. Americans are the same as every body else in the world. We're not born special, we're born lucky. People in third world or Communist nations when given the chance to live here, pretty much adapt to capitalism in short order. However if an American were to find themselves transported to the communist country they would constantly long for the freedoms they had lost. Free is the way God created us to live. But in an attempt to find security people surrender those freedoms to people or an entity they feel will do a better job than themselves. If you've never experienced freedom you don't long for it, like a person whose born free. One of the steep prices of freedom is that there are no guarantees.
Bailouts are a way for the government to take over a business or industry. As Nancy Pelosi so eloquently told the auto makers "till they show us a better plan, we won't show them the money". Meaning that business has to now get approval from government on how they shall conduct their affairs. Congressmen who have never worked in the auto industry are going to tell them what they need to do in order to turn things around.
When government controls an industry capitalism suffers. Management is no longer free to run their business the way they see fit. They have to ask permission from their partners who may have a different agenda. In the case of auto makers, their main objective is to sell cars and be profitable. The stated main objective of the government is to produce fuel efficient green cars. A lot of you are probably thinking that those 2 concerns should go hand in hand. Everybody wants fuel efficient vehicles, so the company making them should sell a lot. But what if gas prices stay below 2 dollars and Honda and Toyota who haven't submitted to the governments whims are able to market SUV's which Americans love? The big three have already been told in a letter from Pelosi & Reid that if they waiver off the agreed upon plan the 25 billion will become due immediately. Some of you may be thinking that the big 3 have been getting smoked by Toyota and Honda for years and that's why they find themselves in this mess. The truth is The big 3 still sell way more than Toyota and Honda. Last year, the 7.6 million cars sold in the U.S., 5.4 million were sold by the big 3. Their financial problems have nothing to do with making vehicles Americans want, and everything to do with a horrendous deal they made with the union. The insurance premiums alone cost the big 3 over 12 billion a year! As opposed to all the other foreign automakers combined spending less than 2 billion. So despite what popular belief is the big 3 are outselling foreign automakers big time. They need help on how to deal with crazy unions.
The auto industry is just microcosm of what happens when you allow the government in to your business. They want to run as they see best for the general public, not for the company. This is how to kill capitalism. If we take our example not too much further we can see newspapers needing a bailout soon due falling readership, and shrinking ad revenues. The government would then have the right to approve news stories. I think it's obvious to see where this example is heading.
Now back to the premise of why most Americans dislike bailouts. I wish it was because they instinctively knew this was an attack on capitalism. That it will take away their freedoms that a free market provides. Sadly the truth is, because government bailouts are for the corporation. I am very afraid that if the federal government put to vote a bill that said any American making under $100,000 would receive a tax free stimulus check every year of $25,000 for the next 10 years, people would be screaming at their reps to pass it. The only stipulation was that the government dictated that you spend that money on American grown food, green vehicles, and energy. "Well it's a great idea to support American farmers and help the environment so of course I'm going to do that". This my friends is a deal with the devil. Anytime you surrender a freedom in exchange for security you forfeit both. Giving you (or corporations) money the government doesn't have by simply printing more, devalues the money you currently have. That's called inflation. In the example I just gave the $25,000 would be worth approximately $250 a year by it's 10th year. Never mind that $30,000 a year job would be worth 300 a year. Inflation will destroy the middle class as it's done it countless countries.
I'm going to float some ideas here that may make some readers angry. But if you'll stay with me till the end I think I'll win you back. Americans are the same as every body else in the world. We're not born special, we're born lucky. People in third world or Communist nations when given the chance to live here, pretty much adapt to capitalism in short order. However if an American were to find themselves transported to the communist country they would constantly long for the freedoms they had lost. Free is the way God created us to live. But in an attempt to find security people surrender those freedoms to people or an entity they feel will do a better job than themselves. If you've never experienced freedom you don't long for it, like a person whose born free. One of the steep prices of freedom is that there are no guarantees.
Bailouts are a way for the government to take over a business or industry. As Nancy Pelosi so eloquently told the auto makers "till they show us a better plan, we won't show them the money". Meaning that business has to now get approval from government on how they shall conduct their affairs. Congressmen who have never worked in the auto industry are going to tell them what they need to do in order to turn things around.
When government controls an industry capitalism suffers. Management is no longer free to run their business the way they see fit. They have to ask permission from their partners who may have a different agenda. In the case of auto makers, their main objective is to sell cars and be profitable. The stated main objective of the government is to produce fuel efficient green cars. A lot of you are probably thinking that those 2 concerns should go hand in hand. Everybody wants fuel efficient vehicles, so the company making them should sell a lot. But what if gas prices stay below 2 dollars and Honda and Toyota who haven't submitted to the governments whims are able to market SUV's which Americans love? The big three have already been told in a letter from Pelosi & Reid that if they waiver off the agreed upon plan the 25 billion will become due immediately. Some of you may be thinking that the big 3 have been getting smoked by Toyota and Honda for years and that's why they find themselves in this mess. The truth is The big 3 still sell way more than Toyota and Honda. Last year, the 7.6 million cars sold in the U.S., 5.4 million were sold by the big 3. Their financial problems have nothing to do with making vehicles Americans want, and everything to do with a horrendous deal they made with the union. The insurance premiums alone cost the big 3 over 12 billion a year! As opposed to all the other foreign automakers combined spending less than 2 billion. So despite what popular belief is the big 3 are outselling foreign automakers big time. They need help on how to deal with crazy unions.
The auto industry is just microcosm of what happens when you allow the government in to your business. They want to run as they see best for the general public, not for the company. This is how to kill capitalism. If we take our example not too much further we can see newspapers needing a bailout soon due falling readership, and shrinking ad revenues. The government would then have the right to approve news stories. I think it's obvious to see where this example is heading.
Now back to the premise of why most Americans dislike bailouts. I wish it was because they instinctively knew this was an attack on capitalism. That it will take away their freedoms that a free market provides. Sadly the truth is, because government bailouts are for the corporation. I am very afraid that if the federal government put to vote a bill that said any American making under $100,000 would receive a tax free stimulus check every year of $25,000 for the next 10 years, people would be screaming at their reps to pass it. The only stipulation was that the government dictated that you spend that money on American grown food, green vehicles, and energy. "Well it's a great idea to support American farmers and help the environment so of course I'm going to do that". This my friends is a deal with the devil. Anytime you surrender a freedom in exchange for security you forfeit both. Giving you (or corporations) money the government doesn't have by simply printing more, devalues the money you currently have. That's called inflation. In the example I just gave the $25,000 would be worth approximately $250 a year by it's 10th year. Never mind that $30,000 a year job would be worth 300 a year. Inflation will destroy the middle class as it's done it countless countries.
In order to protect ourselves we must never allow government to have more power. Thomas Jefferson eloquently stated that this way. "A government big enough to give you everything you want, is strong enough to take everything you have.” Benjamin Franklin added "Any society that would give up a little liberty to gain a little security will deserve neither and lose both".
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