From one man-on-the-street.
I have always believed that artificial props are just that…artificial. Artificial means: false, unnatural, and inauthentic hence, unwieldy and untrustworthy. We ordinary citizens have to bear the consequences of our bad or untimely decisions.
Years ago, I went into a business linked to real estate. I took that leap just when that industry was crashing. Even though I had some big jobs, they were not enough to offset the slump. Furthermore, I was under-capitalized. Eventually, I had to close our doors. No one was there to bail me out. If a bailout had been available, it probably not have worked. It was just the wrong climate…especially for a “start-up.”
I think government subsidies artificially prop-up bad business. Our agriculture industry has been in a mess for years because of subsidies. If you can’t sell your crop at a fair market value, don’t grow it…grow something that will sell. Among other evils, subsidies have resulted in huge corporate farms and an unhealthy glut of corn and soybeans that we have find uses for.
Now, the auto industry is in a mess. Foreign car-makers (“foreign” is almost a misnomer since most of them are built here with American parts) are taking over the industry with high-quality automobiles built with superior efficiency. “The Big Three” are in trouble because they didn’t meet the competition until far too late.
We suffered when our business closed and I and my employees quickly had to find another source of income. Why should any business be any different? If the government is going to throw money at something, why not help the out-of-work automobile workers for a year or so while they search for another job or career? In my thinking that is far more prudent (and compassionate) than prolonging the agony by trying to save their failing industries (to say nothing about the obscene bonuses they pay their executives) by chunking billions at them.
Now, poor Obama is in a no-win situation. If he continues to lob billions at bad businesses he will be condemned. If he does not he will still be condemned. It would have been better to say, “Fellows, you got yourself in this mess and it is not the government’s business to get you out of it.” Upheaval, confusion and suffering may be the result, but if it is not a law, it ought to be: Bad business practices will result in failed businesses. When the dust has settled, things will be different but the economy will be healthy. The deficit and national debt will not be impossibly immense and we will not have cursed our children and grandchildren with its terrible burden.