Wednesday, November 12, 2008

Throwing More Money Away

As our government continues to spend money like it grows on trees, I continue to believe that our elected officials have no idea what they are doing. Pelosi, Reid, Obama, and many Republicans seem to believe if the government throws enough money at a problem the problem will suddenly be solved. They aren't changing any of the laws that got us into this crisis, and they aren't asking business to change any of the practices that got them into this problem either.

The latest chapter in this tragedy started playing today. Treasury Secretary Paulson today said that the original, authorized, use of the $700 Billion bailout wasn't working fast enough. No the Treasury Secretary is going to focus on, "…direct capital injections into the struggling financial firms." The government is just going to buy pieces of these firms. This is the same Federal Reserve that refuses to identify how it has spent $2 Trillion in emergency loans already. Does anyone really feel comfortable with our government spending this money as fast as it can without any real accountability? The government does two things well: make war and waste money.

Today I saw an article where a number of different industries are going after the big bailout. The automakers are getting the biggest play on the news, but other groups like credit card companies, auto dealers, boat dealers, and several Hispanic business groups. The Hispanic business groups want to manage the homes the government might own as a part of this bail out. Pelosi and Reid are talking about using part of the bill for the auto industry, and there are signs the details of qualifying for help under the bailout may change under an Obama administration. This coupled with Paulson's desire to spend the money in a different way is probably the worst thing our government can do right now. They are creating more uncertainty. The Great Depression went on as long as it did because business had no idea what FDR was going to do next.

So far, there have been no talk of changing any of the practices that got us here, or making any changes in the way our government does business with financial institutions. If we really want to improve the economy, the government will stop issuing bailouts, and start cutting taxes. We will stop adding clauses and requirements to the auto industry, and start cutting the requirements we have on their manufacturing.

There is some small hope. Some Republicans are against more bailouts. Richard Shelby (Republican Senator from Alabama) has said, "I do not support the use of U. S. Taxpayer dollars to reward the mismanagement of Detroit-based auto manufacturers…" Amen.


Anonymous said...

Detroit shouldn't get a dime until they start building cars that don't cook the planet.

They want taxpayers to pay Detroit to build cars that burn too much gas that releases too much carbon that will cost us too much to adapt to and even more to fix.

Detroit sued the government when they tried to raise the U.S. fuel efficiency standard to something close to *China's.* They are now the "can't do" industry. Time for them to get it together or get outta here.

pack04 said...

yay!!!! more global warming about the labor unions that have caused the price of making cars to be so high. Lets get rid of them and see what Detroit can do.

hmmmm...I like where this "we have to do something because it is better than nothing" plan has gotten us. Seems like it all goes back to that saying of give a man a fish feed him for a day...except this time it is gave a man a fish to feed him for today. so he quits fishing. You could even say this is a Pavlov's dog kind of thing. except the dogs are ringing the bell to get the food.

Government control of economics and markets does not to the USSR oh wait you can't because they FAILED. Now I am not saying that we should not have some over site and protection from the government, just not control. Buying interest in companies is control, not objective over site.

Anonymous said...

I know! Let's use our tax dollars to help Detroit do more of this.

Andy is right: no bailout for Detroit.

That we're paying them to make us sick makes it that much worse.

Andy D said...

Notice how when gas prices go up, and hurricane occurrences go down, the global warming rhetoric dies off...

Even if you believe in global warming, you have to be appalled at the bailouts being proposed in congress right now. Obama is for them, Pelosi is for them, and Reid is for them.

Anonymous said...

Andy, news about global warming only "dies off" if you aren't paying attention to... um... news.

Anonymous said...

The bailout has already cost, in inflation-adjusted dollars, more than the U.S. spent in WWII.

That much money could have supplied wind power for all of the U.S., with plenty left over for clean, green, economic growth.