It is amazing to me that our country's slow drift toward socialism accelerated so noticeably during the term of a supposed conservative president. I'm talking about the ridiculous bailouts, and the growing list of financial institutions, businesses, state governments and advocacy groups lining up for a government handout. The cost will easily pass a trillion dollars, and that doesn't count the coming Obama socialization of health care. Now banks, the auto industry and health care will be managed by the Congress that oversees an insolvent social security program, a bankrupt Fannie Mae mortgage business, and presides over a huge government budget deficit. This is not to mention the "growing out of control" medicare/medicaid programs.
Further, there is no evidence that these irresponsible giveaways will accomplish anything, other than to reward and perpetuate the conduct that turned a cyclical downturn into an economic crisis. Henry Paulson has engineered handing out $350 billion to financial institutions so far, and three months later there is no loosening of credit for businesses or consumers...in fact, it's gotten worse (although I hear that Henry's friends in "the Hamptons" feel better). Handing out $7 billion to PNC paid for them to buy National City Bank for $5.6 billion (and now both banks are restricting credit). Bailout money did help Citi Group continue their efforts to raise $8 billion for a middle eastern country (why not raise it for themselves, and not take taxpayer money?), and pay $35 million severance to an executive so he could buy a $23 million apartment in NYC. (I suppose Henry's spin is that the government prevented one more person from becoming homeless...how noble). But are any of you average people out there feeling better off now that Henry (authorized by our Congress) has handed out $35o billion of your tax dollars?
So now the government owns part of the largest banks and the largest insurance company, and has its' eyes on "helping" the American automotive companies manage to success. But once again, there is no link to pay for performance...i.e. the auto companies (and their unions) don't have to do anything other than say they will cease to exist and promise to do better. This is similar to the financial institution bailouts...no performance required and none received (I guess it did work by that measure). By the way, we should all understand that this is a Union bailout, not an auto company bailout. The U.S. auto companies pay roughly twice the hourly wage plus benefits rate that the Japanese car companies do (in the U.S.).
Why not reward performance? For example...for banks to get bailout money (to ease the credit crunch) they have to increase lending (to creditworthy businesses and consumers)....the auto companies and Unions have to come up with an agreement that restructures them to be competitive before they get bailout money...instead of giving them a pile of money and hoping it will turn out better.
Here we are at the twilight of capitalism and free enterprise; the system that created the most powerful economic society in world history, trying to emulate the ever fading European model of socialism.
Obama's plan for a $700+ billion stimulus of "make-work" projects shows he doesn't understand the basics about the economy.
ReplyDeleteGovenment produces nothing. All it does is tax from real production that is produced by the private sector, and then redistribute it.
This works when the private sector is vibrant and produces goods and services others are willing to pay for. Govenment make work projects must get paid for by taxing other real producers, or by borrowing money which future generations must repay.
Sure, government can print money, but the risk is that it creates inflation, which is the same as reducing the salary of workers.
Obama and Democrats don't seem to understand this basic economic principal. They are going to turn a severe recession into a depression. Unfortunately, too many of the Republican congressmen and senators don't understand this either.
And the elitist media hasn't a clue. They think that spouting slogans such as "Yes we can." will somehow produce a sound economy.
Unfortunately, the mindless followers who voted in this bunch of clowns is going to suffer down the road.
As far as CHANGE is concerned, I guess Obama supporters think recycled Clintonistas represents change. The change that is likely to occure is even greater corruption under the Democrats.
One move that looks like it will produce change is the appointment of Panetta to head the CIA. If he manages to get confirmed, this bone-headed move will almost certainly result in a change - that the US will suffer another attack on our soil.
I hope the younger Mr. Frey will carefully watch the moves his naive President makes, and be prepared to vote him out of office in 2012.