Diary

Bailout Madness

Fred Thompson’s latest video on our economic state is a great, satirical monologue. However, more than that, it illustrates the plethora of common sense solutions available if we would decide to support rather than fight our free market system.It is such a deceiving illusion to spend tax payer money for the company-of-the-day club. The government does not create wealth but simply shuffles resources from you and me to someone else. Now some of this fine. For example, as a veteran, I am quite happy to pay a reasonable tax for a national defense. (We could spend a whole another set of discussions debating what is reasonable.) But to fall into the mentality of “it’s too big to fail” is a siren song that will eventually hurt us in a much more painful way. Let me hasten to add that I take no pleasure in seeing any organization fail. The human cost is always painful.

We are foolish to think we can restrict free markets and not suffer negative consequences now and later. Look at how price controls either create shortages or surpluses depending on which end the control resides. Look no further than our auto industry which is in deep trouble. The companies want to essentially continue with business as usual while taking tax money. “We just need our sales to rebound” is the cry. No, business reform is needed to remain viable in the market and throwing good money after bad in the form of government subsidies prolongs the agony. This delaying-the-inevitable strategy masks the real core issues that we ignore at our peril. An unfettered free market has a way of sorting out each issue.

And what about inflation? That seems to be the least of our worries right now and yet how much extra money will the government need to print in the coming months as a result of all the bailouts. If the economy starts to recover and this printing is still going ahead full-steam, we will see inflation come roaring back.

This voter would be much happier to see the government engage in serious discussion regarding tax and regulation reduction. Forget the bailout madness and have the courage to support rather than fight the free market. The market is bigger than we are and it is bound to prevail at some point. Sooner will be less painful than later.