Sunday, November 16, 2008

Role of Government

I have become confused recently regrading the role of the United States government. I don't recall our governments role being to bale out failed corporations left and right, throwing money around in all directions with no concrete direction to this madness. It appears to me that the worsening financial crisis has politicians desperately scrambling to solve the problem by handing out money, were a more long term/ sustainable solution is desperately needed. Its like the analogy of band-aid for a bullet wound. Where do you begin to draw the line? Can any company come on there hands and knees expect to be saved. Are we going to borrow more money from China, increase deficits so that the government can rescue every company? Saving a company from going bankrupt does NOTHING to stabilize the long term issues that created the problem in the first place. What is going on here. It's unfathomable to me that our representatives are giving money to companies that are going under when market forces are driving the bankruptcy and the population says nothing. Why does that call for government intervention, why is the government playing a huge role in the PRIVATE markets? Private meaning no government! Where, I wounder is the FREE market principles of Adam Smith? And why do I feel like nobody else comprehends the macro-economics at play? For example the auto industry particularly G.M is facing bankruptcy and asking for $25 Billion in assistance to say afloat. Now that $25 Billion would keep the company running for 6 months or so, then what are you doing to do, give them more money? Can I get some logic! Maybe the reason G.M is loosing so much money is because they offer a inferior product and are technologically lacking. Why do I have to pay for G.M lack of a sustainable business model, while there executives make millions? Sure it looks good to the uneducated citizen, "oh the government is trying to help." No, that type of spending dose not help AT ALL. Why people don't understand basic economic principles I cannot begin to comprehend. Where are the good old days of personal accountability? Socialism here we come.

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