Bailout My Butt

Several folks have asked my opinion of the government bailout of all the businesses that have been in the news. My gut reaction to the Fannie May and Freddie Mac bailouts was, the government created this mess, let them fix it. Then I realized they were using our tax dollars for the fix. This is wrong on several levels.

First you have to realize that government is the only entity in the country that can take your money at the point of a gun. If you don't pay your power bill, the power is cut off but you can't be forced to pay it. If you don't pay your taxes, first the government takes all your assets. They rob your bank account and put leins against your property. If you still refuse to pay, they send armed agents of the government to put you in jail. At the point of a gun if necessary. So the gun thing is not an exaggeration.

So what the government is doing is using your money, taken at the point of a gun if necessary, to help private businesses. Look at the "Big 3" automakers. All the years they were making gazillions of dollars they never offered to share it with you. Instead they built palaces for their corporate headquarters and millions and millions on CEO pay. I never faulted them for doing this. It is a private business and they could do what they wanted with their money. This is as it should be. You and I should be able to run our businesses and do what we want with our money.

But if you and I build palaces and pay exorbitant salaries instead of developing products that make us competitive in the marketplace our businesses go into bankruptcy. If we run to the government for help we are laughed out of town. What makes these big businesses special?

The government gave 700 billion, (that's with a "B") to one man to spend however he wants to help the economy recover. Never before have we given such a sum to one person with no idea how he will spend it. Now the auto industry is asking for another 25 billion. Where does it all end? At the barrel of a gun.