Tuesday, November 18, 2008

Another Bailout?

Another bailout...Really? The government has really opened Pandora's box on this one! Now you have cities asking for a bailout, states, and even private companies! The really big one that has hit the news recently is the "request" by the big three auto makers to get an emergency loan.

A lot of Americans are short term minded and are only concerned about the here and the now. How far are we, as a country, willing to go to make sure that we get through the economic downturn by bailing out companies both privately and publicly owned. Thanks to Wikipedia the definition of Capitalism is the economic system in which the means of production are owned and controlled privately, for profit, rather than by a state. Companies are built daily across the nation with the business owners knowingly taking the risk that there is a chance that their company might fail or that it might succeed! When Henry Ford started the Ford Motor Company, do you think the government would have bailed him out back then if he was on the verge of shutting down? I don't think so, because at that point, the company didn't employ that many people.

The point is that companies rise and fall, and they should be allowed to do just that! I was against the $700 billion bailout and I am also against any additional bailouts. I know what you might be thinking, "Oh wait, Justin, so many people could lose their jobs if the auto industry isn't bailed out." I understand that families will suffer if there are layoffs or if you get a pay cut if you keep your job. This is coming from someone who is directly affected by the current economic situation. If the companies are on the verge of collapsing, then they ought to be allowed to collapse. The opposite is true as well, if they are thriving, don't tax them more!

America used to pride itself with the fact that it had a "free" market society. With constant intervention and constant talks of even more regulation, our free market is not so free anymore. Throwing money at the problem won't fix the problem. Today, Harry Reid said, "All it would take is one stroke of a pen and that problem would be solved. We are seeing a potential meltdown in the auto industry, with consequences that could directly impact millions of American workers and cause further devastation to our economy."

Sorry Harry, writing a check won't solve anything long term. Sure it might be a band-aid, but you aren't cleaning the wound and sewing it up to ensure that it heals properly. Any kind of sudden movements or any kind of scratching at the wound could tear the band-aid right off and the bleeding starts all over again.

We all want to be considered a patriot. When you think of our soldiers going off to Iraq or any place else, you think of patriotism. When our country united together after 9/11, you think of patriotism. Patriotism is showing the love and devotion to one's country. Soldiers that are being shipped off to Iraq are thinking of only their country! They are leaving their family and friends behind because of their patriotism. Biden said that paying more taxes was patriotism... I don't agree with that at all. However, I consider myself a patriot because I am devoted to this country and I love it! I want it to succeed how the founders wanted it to! So why am I against the bailout of the banking and auto industries? Why am I against bailing out private and public companies? Because of the love for my country!

I would much rather suffer through these next few months knowing that the future of this nation remained intact, rather than see the government take our tax paying money and pick and choose which companies they think should succeed or fail or take our money and buy stocks in lower performing companies. Don't you see that because of this, the government would have part ownership in these public companies? Say goodbye to free markets. These politicians are thinking only in the short term (2-3 years). They are doing what they can to fix the immediate problem. Notice how these recessions are getting closer and closer together in years? Until they actual sew up the wound and allow it to heal, we are going to continue to see this cycle. Sure we won't have layoffs in 2009 or 2010, but what will happen in 2011? Even though we might see massive layoffs, if companies were allowed to fail, it would be better for our country in the long run and benefit us more in the long run if we allowed companies to rebuild themselves.

We will be better and stronger for it!


Riley Kai said...

Hey Justin, met your wife via blog world (I'm friends with Amy Walker). Her writting encouraged me through the loss of my mom at the same time you all were saying goodbye to Jon. She is such a strong and wonderful woman...your a lucky man:)! I look forward to reading more of your blog...and can I say, I 100% agree with you!

Diane said...

We have become such a welfare society that we now turn to government for everything! We no longer want the freedom and liberty that involves fending for ourselves and building our own life. If a company fails (even one of the "big 3" auto companies), it is an opportunity for a savvy entrepreneur to get that break he's been looking for. There is always another ambitious and intelligent American to step in to fill the void; we just need to ensure he has the chance by allowing the void to be created. Why prop up a company that isn't cutting it when we could benefit from another company's fresh ideas and technology? Get the government out of our lives as much as possible...if we can do it ourselves, LET US!! The American dream is making something for yourself, not having it handed to you by Washington bureaucrats. They just need to get out of our way! Thanks Justin, your insights are always right on!

Brian and Dara said...

You have such a great way with words. I think you are able to write what most of us are thinking. I would like to see some creative thinking on the part of these companies. Have their Sr Leadership given up saleries/benefits/bonuses? When did the American dream become so easy to achieve?

I look forward to more!