Doing Stalin Proud

Well, it seems more or less official at this point, the Federal Government of the United States has decided to dip into the treasury fund your tax dollars and offer up $1 Trillion to help bail out all of these companies that have been floundering over the last few weeks. That's right, $1 Trillion - the same amount we've spent over the last 5 years fighting the War in Iraq - all in just a few weeks.

I know, not what you voted for either, huh?

Well, I was going to write a little blurb on why I don't like this massive bailout plan, but then I came across this audio of Judge Andrew Napolitano, of FOX News, ranting on this very topic. So I'll just have you listen to his rant instead - it's brilliant:



Indeed. However, before I go, let me just put in one quick word of my own. It should be noted that part of the reason all of these companies have been failing in the first place is because of the idiotic policy of what amounts to corporate welfare. In recent years, big American companies have gotten used to government bailouts - whenever they go just a little bit to far, the government is there to help them out, and make sure they don't totally collapse - what we're seeing this week is new only in the sheer scale on which it's being done. The problem is that by continually bailing out companies, big or small, the government creates a welfare net that these companies can (and have) come to rely on.

As a result, these companies have become fairly certain that, if they screw up, the government will be there to offer a helping hand. Consequently, they can continue to take bigger and bigger risks, risks that they probably wouldn't take if they had to operate entirely on their own, which result in them getting into massive financial messes like the ones taking center stage this week.

It is, if you will, Corporate America's replica of the catastrophe of the European welfare state.

Just as increasing social services to the point of absurdity (a.k.a Europe) causes one to lose a sense of responsibility about one's own life, this kind of corporate bailout program causes companies to forget what it's like to have to be responsible for one's own decisions and to have to deal with the consequences of poor ones. Bailing out people who make stupid choices, be it the crack addict on welfare or AIG, is not a solid foundation for economic prosperity; it is socialism, pure and simple.

In fact, come to think of it, AIG et. al. are a lot more like that welfare crack addict than you might think - the only difference is that AIG's drugs are legal.