We’ve had the unfortunate privilege to watch as the United States has taken billions and billions from the taxpayer and given it to companies and banks that have shown tremendous irresponsibility leading up to this catastrophic economic downturn. While this has been happening, the economy has continued to get worse and worse despite the government saying that by bailing out these companies, we are going to have a strong rebound. Instead of seeing that rebound, all I have seen is the United States attempting to bail out businesses that, through tremendous acts of greed, have failed and are now stuck begging for money.
I propose a very simple question about this whole situation that I don’t think the United States government has really taken into consideration. Where do you draw the line? First the banks starting having problems, so we went in and gave them hundreds of billions of dollars with the hopes that they would start lending again and make the economy rebound. Once we did that, suddenly the automotive industry came and said that they needed money as well. They led us to believe that if they didn’t get money, they would collapse and that would cost the economy a lot more than the money they were requesting.
The money was given and that may or may not have been a good idea. The part that has become increasingly frustrating is that they want more and more money. Where do we stop giving money? When is some technology company going to come along and say that they need money as well? We are quickly becoming a nation that bails out failing companies rather than a company that promotes innovative ideas.
G.M.’s new battle plan is to tell us that if we let them go bankrupt, it’ll cost the government a lot more money than if they aid in the bailout. That’s fine, in my eyes. Allow them to go bankrupt and then allow private investors to come along and buy up what car models they want. Hummer obviously won’t last. Pontiac, though, might get purchased. Saab might get purchased. All the little cars will get bought because that’s where the money will quickly be. The day of the tank is long gone.
By allowing them to go bankrupt, what it shows the rest of the business world is that the United States will not bailout bad businesses. It’ll make other businesses see the importance of doing good business. The United States is not a nation that bails out companies. We are a nation that promotes capitalism. If that’s the case, we need to stop promoting bailouts. It’s as simple as that.
Jacob is the owner of a Political Commentary web publication. Time and time again, he talks about how this automotive bailout is a really bad idea and how it will only make things worse.
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