I find it interesting that the so-called “fiscal conservatives” in our government, who so regularly balk at programs to provide a social safety net for our citizens, are so ready to provide corporate welfare to badly run companies. If they are opposed to welfare and are such champions of the free market, then why not let the companies die out and let the market make it’s way?
The Fed is bailing out AIG and, in return, getting an 80% ownership stake. We have a word for a system where the government owns the companies: communism. Yet, our free market, fiscal conservative government says these companies are just too big to let fail. It seems to me that two possible responses come to mind. One is that if a company is too big to fail then we shouldn’t let a company get that big because then we can’t get rid of it. If we don’t think that restriction should apply then we need some regulation to ensure these same companies don’t do the things that will get them into such trouble.
Instead, we allow them to be stupid and then bail them out when they do. What incentive do they have to not be stupid? There is very little risk and a boat load of money to be made until the music stops. Enough with corporate handouts! True, that the handouts will preserve the jobs of many people who did nothing wrong, but a better solution would be to let the company fail and use a much smaller amount of money to help those people find new work. And enact laws to restrict unrestrained greed that motivates these companies to such insane action.
And stop calling yourself a fiscal conservative if you think that these types of actions are a good idea. If we must have welfare, then it should go to people and not companies.