Tuesday, May 5, 2009

Give Me Liberty Or Give Me a Bailout Part 2

The government is providing $250 billion (federalreserve.gov) in “recovery” money to the failing companies. Although it sounds good for the government to “bailout” or provide a “Recovery Act” for a company, it is only prolonging and escalating the bad effects of these companies completely failing. If a parent were to give a child a new video game (insert your favorite childhood toy) every time the child hit their sibling in the face, that child would continue to do the bad behavior. It is human nature that when one receives something good for a particular action, then that action will be reinforced. If a company makes decisions that cause that company to lose money and start to fail, the government should not give them money. This action by the government only reinforces the company to continue to do the same action. This is only in human nature to do this. Not only is the Government reinforcing the failing behaviors, but they are lending $250 billion away to failing companies. This money can only come from one place: the taxpayer! If the failing company is only going to continue to fail, then it will not be able to pay the government back, so the money that the government has taken from the taxpayer, the taxpayer will never see again. That means that the government will no longer be able to operate without receiving more money. Taxes will increase to pay for the $250 billion loan. In turn, taxpayers will have less money, because they will be paying more in taxes. Soon the taxpayer will not be able to feed their family or themselves. Then the government will have to bail the taxpayer out with the taxpayers tax money, which will give the government even more control. This is a horrible cycle that will only continue to get worse the more money the government spends. Bailing out a failing company only prolongs that companies failure and deepens the impact its failure has.

2 comments:

  1. Fight the Power!

    I heard someone say wouldn't it make more sense to give every american $1 million. This would spark the economy, give people the money needed to get insurance, etc. Then force retire or buyout everyone over the age of 65. This would give us the much needed jobs in America.

    To me this makes more sense then what is going on. In the next 10-20 years our government will be in control of everything, can anyone say Marxism or Communism or Scaryism.

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