18 March 2009

Prophesy Fulfilled

A few phrases could have summarized my feelings about government bailouts.

That which the government funds, the government will control.

Last week, I read in the paper that President Obama got emotional and upset in a news conference (echoing public sentiment) that bailout money from the government (which is from the people) was going to executive bonuses--millions of dollars for AIG executives. So, he is heroically going to try to do whatever he can to get the executives to not receive the bonuses and to prevent the companies from using future bailout installments for executive bonuses.

First the government funds the companies, then it will move towards controlling them. This is the path towards socialism.

If the government was a business, it would be bankrupt. Any businessman would be foolish to put all of its investments in failing businesses, yet, that is what the bailout packages have done--they have invested American tax dollars (whether through direct taxation or indirect taxation (by inflating the money supply--devaluing all of the saved US currency around the world)). It is not a sound investment. The companies that required bailouts are unfit for the market and should have failed and likely someday will. In viable companies--in companies that are fit for the market, bonuses are given based on performance. Obviously AIG has found that their new business strategy of getting profits without a producing products is worth a reward. Is it any wonder that AIG is not cutting it? Is there not wisdom in letting unfit companies fail. Is there not wisdom letting the economy reject the unprofitable companies.

What does this mean to us? This means part of your earnings go to support government selected companies (and executive) which are the same companies that you already rejected by rejecting their inferior products. This means that government is expanding its umbrella of governance ever further into the "private" sector. This represents a large step toward socialism. Socialism represents governmental control and reduced freedom. Socialism represents the end of the American Freedoms and ideals that have helped to prosper us for over 200 years.