Posted by
JayPeriod on Thursday, November 13, 2008 10:37:48 AM
Bailouts are the rage of the season. Banks want them. Automakers want them. Who knows how far they will go before someone says, "enough."
We keep hearing that these banks and companies are "too big" to let them fail. We can't let GM go under or we may lose 3 million jobs. We can't let AIG go under or we may lose retirement funds and insurance. The list just goes on and on and on. So, our government just keeps writing checks to the uber-large corporations, borrowing money to do it, and tell us it's for our own good.
The problem, though, is now we, the people, have become the largest group of enablers on the planet. AIG keeps sending execs on junkets to exotic places and automakers keep paying union workers 6 and 7 times what a minimum wage earner makes, plus benefits that would make a Congressman jealous. We're told we just have to suck it up, tighten the belts and understand that these companies can't change the way they do business.
If someone has a habit of getting drunk and sleeping in their own vomit, we understand that to continue to give them drinks is to contribute to that habit. We do the "tough" thing and tell them to get over it, grow up and become a better person. To fail to do so marks one as an enabler. Enablers can be those who allow husbands to abuse their wives, allow drug users to continue to get high and destroy their lives, among other things. Enablers need to be treated for their condition, just as the one they are enabling.
Yet, our government is throwing money at these poor, poor business models and not holding them accountable for changing. GM never stood up to the union, now they are paying the price of out of control wages and benefits. They don't want to suffer or change, so they threaten the government with massive unemployment if they are not given more money. Rather than change their business model, they just want another "fix."
The same is happening in the banking and investment business. They don't want to change the model of extreme compensation for execs, so they demand we, the taxpayers, foot the bill for billion dollar bonuses and compensation packages. We are told that if they are not helped, they will fold and take the Dow with them.
And we enable them.
So, is socialism the only answer? Will we have to accept government control and "share the wealth" plans to keep these people under control? Will we need the government to pass laws to bring these businesses down to size?
I'm afraid that without some common sense and self-control among these businesses, we will have no other choice. The unions will refuse to renegotiate contracts and accept "reasonable" compensation, they will be the end of their own paycheck. If CEOs don't realize the very people they are threatening will be the ones that clamor for their heads on a platter, they are doomed to be thrown over the cliff of socialism and see their kingdoms fall.
I am a strong proponent of capitalism. I believe the best way to encourage someone to work hard is to have a reward at the end of the road. Socialism does nothing but promote class warfare and slothfulness. Yet, I also believe that uncontrolled greed should be made to suffer the consequences of its actions.
If these companies won't control themselves, they should be allowed to suffer the consequences. Will some innocent people suffer, as well? Sure. Are some of those "innocent" people part of the problem? Maybe. Will it kill our contry if GM or a few banks cease to exist? No.
So, what doesn't kill you only makes you stronger. New companies, stronger companies will arise and fill the void. Maybe they will learn from the error of their predcessors. Maybe those still in existance will learn those same lessons. Surely if GM goes under, Ford, Chrysler and the union will not allow that same fate to befall themselves. They will revamp and restructure and survive.
So, is socialism inevitable or the only answer. God, I hope not. Only time will tell, though. If there are not some changes and if the enabling does not stop, we may not be able to stop it.