Monday, March 2, 2009

How many bailouts does it take to turn a lightbulb?

GM loses billions last year, sales down for the entire automotive industry are down so far and the bottom may not even be in sight yet. Banks falling apart, insurance companies going down and the list goes on.

So why the bailouts for everyone except white male construction workers and highly skilled professionals, as Obama's people said.

In a CAPITALIST economy, these companies are failures. By definition, they are not worth the effort of saving because if they were, they would not need a bailout. There are major banks and small ones who do not need bailouts. There are insurance companies that will survive without bailouts. Some Foreign Auto manufacturers are going to make it through this so called crisis without any government bailout.

Prophet Obama, how about letting capitalism run its natural course and let these business fail. It will not hurt in the long run. The workers will be picked up by competitors, as will the assets and resources of each failed business. The customers will still be customers for some company out there.

There is one thing to government could do, reduce regulation and taxes, especially regulation. These actions might be enough to save these failing business because it does appear most of the businesses needing bailouts are in industries heavily regulated by the government.

No comments:

Post a Comment