I watched the hearings with the CEOs of Ford, GM, and Chrysler these past two days and I tell you...it's a bunch of garbage. So we gave billions to AIG so they could go and play on the beach and at resorts, and then we gave $700 billion to Wall Street and banks without any oversight on where the money went and how it was used. And now these three are begging for $25 billion....no scratch that.....$34 billion (and rising) from the government. When did this become the norm? So now if a company is in trouble we bail them out? Whatever happened to the word 'bankruptcy?' Now states are begging for at least $100 billion in aid from President-Elect Obama. Now, imagine if you or I walked in to see Senate Majority Leader Reid, or Senator Dodd and sat down and explained:
"well, we're just strapped for cash and have a home in foreclosure. We also have credit card bills that aren't being paid because of rising utility bills and car payments. Now.....all we'd need is a small 'bridge loan' of $10,000 to get back on our feet. We have six kids and so....we're too big to fail. If you could just grant us this loan with some critical benchmarks for improvement, you won't be sorry!"
We'd be shown the door in a second with no help and a 'thanks for your support' as you were on the way out. So the American people, the people that spend money and drive the economy are allowed to fail but three car companies who have failed to keep spending in line and have been poorly managed are okay? AIG is okay? Citibank is okay? When did this happen? Why did we let this happen? Because we've become a coddling society. Because it would be so sad to see people lose their jobs. But it's critically important to realize that bankruptcy was designed for a reason. It's important to remember that while many would lose their jobs, sometimes that step is necessary to remain competitive in the world. A stagnant company with falling revenues that is given money from taxpayers to stay afloat for maybe a year is the worst investment because all it does is provide a band-aid for the problem, when what is really needed is stitches or more. I say let the companies go bankrupt. Let them restructure and become more efficient and cost-conscious. The unions can complain all they like, but if the money isn't there, they lose all leverage. Let them go back to square one and try to be competitive again. Let those companies take the risk, not the taxpayers.
And if the federal government feels sorry and gives the money to these companies, and then gives money to the state governments (who blew record surplusses over the past five years), then I know it'll only be a matter of time before small local businesses are next, and then even individuals. Finally, some allied country, that we already give money to in the form of aid, will come knocking and asking for their own bailout. And then what do we do?