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Originally Posted by Barcs  We can't just go around bailing out every single industry giant because we're in a recession! I'm tired of this crap. If we, the citizens, have to pay this cost, then we should own them. The citizens should vote and make decisions for their company and the executives should be fired. Is this not a free market economy?? This is the exact reason why America was founded on small business and why small business should run America, not large corporations. If the auto industry was composed of tons of small companies, instead of 3 big ones, milllions of jobs wouldn't be lost if some of them go under. We don't live in a democracy or a "free" market. We live in a coporatacracy, and bailing them out, proves it. I firmly believe that this action will only cause the economy to get worse, faster. We need to embrace this recession instead of fighting it, because one it is over things will be better. If we interfere with everything, then it could set off a chain reaction. I saw today that the federal reserve fears deflation. How is this possible in a system where inflation is constant? |
Couple of things... 1- Do we really want public votes to determine action? Cuz, like, I don't trust the business acumen of the American people as a whole. Heck, I wouldn't trust my own judgment with that job. Let's appoint someone who knows what they're doing to take over. Maybe Warren Buffet has some time to kill?
2- Agreed on the need to diversify ownership of industry. We've got that problem with automakers, airlines, and oil. All three have natural large capital hurdles, so getting new people in isn't easy. Oddly, the past twenty years or so saw some disincentives put into place for all three industries. Most notably, several "tax loopholes" have been closed to that eliminate an incentive to enter oil/natural gas as an individual...
3- Embracing the recession looks ugly. Unemployment around 15-20% isn't too far-fetched. That would cause large tax deficits as folks just wouldn't have jobs to pay in. It would also cause some trouble in terms of massive reduction of local economies. In turn, that usually increases drug use, crime, and strain on social resources.
That said, trying to bail out the economy using free money to any struggling company doesn't seem all that wise. I think the government taking an equity stake by contract in some industries is appropriate. If a company wants taxpayer money, they should provide benefits to the public in return.
At the very least, we absolutely need to set up some kind of safety net industry which can provide beneficial work to the unemployed. Generally, this is public works...