Listening to the news on the radio today, you’d think that people in America are completely ignorant. There are those who are clamoring for this new bailout, thinking that this will save the economy. Yet, many of these same people seem to be shocked that President Obama would now think that he has the right to step in and impose governmental regulations on those companies that would accept money from the government bailout. What exactly did you think would happen? Do you really think that the government was just going to hand money over to these floundering companies and not try to influence what they are able to do? Folks, you are seeing the beginning of the demise of the free enterprise system. Watch now as the socialistic model steps into its place.
We saw the same thing when it came to auto makers. Once the government stepped in, they had the right to start implementing further regulations that will drive the manufacturing costs up. But, don’t worry, since the government will be a big part of the industry, I am sure that the cost to us as consumers will not be affected…yeah right.
Now, with the bailouts that are currently proposed, Obama feels that he has the right to step in and limit the salaries of the executives. $500,000 is to be the “cap” for all executives of companies that accept this money. Now, that is a lot of money to me…but it is not a lot of money for an executive of a major company. So, the bottom line is, these companies who accepted government money will not be able to hold an executive that is worth anything, as they will go to a company that will pay them “market value” rather than “Obama value.” So, struggling companies will then lose any hope of attracting executives that may be able to get them out of the problems they now face, leading to more struggles. They will end up with sub-par execs, who will basically perform at a sub-par level, causing the companies to be sub-par companies. The bailout will ensure the downfall of most of these types of companies. Only in a case where there is some company loyalty for the execs will there be any kind of success.
The bottom line is that this type of bailout is not good for a free market economy. I am no economist, and I am sure there are some ins and outs that I don’t understand. However, allowing the government to interfere with free enterprise, controlling salaries, and implementing restrictions that are not helpful to the market, will destroy more companies than it will help. In fact, if we are going to be a free market society, then the idea of a bailout should be scrapped completely. If a company cannot make it, then they should be forced out of business. Some say, “But these companies are too big to fail!” Wrong. if they were “too big to fail” then they would have sound business practices that would ensure that they continue successfully. Loans from the government could be a possibility, but those loans would have to be just that. They would have to be paid back, and the government would not be able to impose ridiculous regulations.
We are heading further down the socialistic path than most people would like to think. And, in the next 4 years, we will go further than most will want to go. And, before all the liberals start blasting me for going against this bailout and not the “Bush Bailout”, realize I was against that one too! I am so glad that the house republicans stood up against this bill. We will see if the senate republicans have the guts to stand up for conservative principles too!
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As usual, you are right on the money (no pun intended). Reasonable, level headed leaders would stop to analyze what got us into this mess to begin with: government interference with the banking industry. But, silly me, we are talking about Democrats here. What was I thinking? The bleeding-heart liberals decided that it was a “right” to own your own home, not the “priviledge” that it really is. They (Chris Dodd, Barney Frank, and their ilk) then convinced/threatened banks to give loans that most reasonable lenders would deny to those who could not afford it. The truth is that there are some people who are better off renting. It is a cold, hard fact. So, instead of saying, “Oops! Big mistake there”, they blamed Wall Street. Now, I am not saying they (Wall Street) are all completely innocent. However, you would never hear our leaders in Congress say “Sorry. My bad”, but then demand that very thing from the private enterprise they regulate and blackmail. They lambasted the auto industry execs for using private jets (which they have a right to use) while their companies are struggling (thanks, yet again, to Congressional regulations), while those very interrogators hop on private jets we pay for while they spend this country into ruin. We are billions and billions of dollars in debt to countries like China and Dubai, but we will feel good about helping the little people and sticking it to the rich. What should be done is exactly nothing. Let chips fall where they may and bad companies go bad. Leave the good ones alone to fix their own industries. But that would be free market working, and liberals just can’t have that! Now, after they pass this collossal sham of a “stimulus bill”, they will set their sites on the health care industry. Keep your Tyleno/Advil close–you will need it! Sorry this is a novel rather than a comment, but this has had my temper boiling for more than a week. Thanks for letting me high-jack your blog to vent.