Corporate Bailouts: Failure Not an Option?
One of my philosophies in life comes from W. Cleon Skousen, who borrowed from Adam Smith, that we should have the right to buy and sell, try and fail.
We’ve been hearing in the news a lot lately of the government coming to the aid of giant failing corporations and bailing them out. Is this right? Should they not be allowed to fail? Is corporate bailout a proper role of government? I don’t believe that the Constitution states that government has this power.
In the case with AIG (American International Group, Inc.) it’s the Federal Reserve that is offering the assistance. The Federal Reserve is not actually part of the U.S. Government, it’s a separate, private group, controlled by a seven-member Board of Governors. But it’s still closely tied to the government and only exists to provide a monetary role to the government. I, among others, would argue that we’d be better off without the Federal Reserve, but that’s a story for another day. From what I have read, this assistance to AIG will be in the form of an $85 Billion Loan. I just hope this doesn’t cost tax payers anything.
If it is the tax payers who ultimately have to pay for a companies bailout this is tyranny. Let the company fail. Let them learn from their mistakes and let the American people be free to also fail or succeed by their own merits.
When individuals are allowed to fail (and succeed) without government intervention the result is more freedom and prosperity for all because this ultimately leads to increased responsibility for ones own actions and increased Independence, rather than dependence on government.
September 19th, 2008 at 2:49 pm
I sure agree with your article! Big brother Government should not be bailing out companies financially. I wish they would get their sticky hands out of the corp. world and our business!
September 19th, 2008 at 5:17 pm
Isn’t our government governed by the laws of our land? What does the law say about this kind of government intervention? I know that the alternative seems too scarey and overwhelming to some, but the end result of government take over is far worse. I have heard some speculate that the government will just sale their shares back to the people when things are better. I have a VERY hard time believing that. What is your opinion?
September 19th, 2008 at 7:13 pm
it’s hard to object to the government’s mass bailouts since similar debt-producing methods were put into action to bring the U.S. out of the Depression; maybe we’ve been headed for socialism all along…
September 19th, 2008 at 11:30 pm
The law? The Constitution is the law and it doesn’t allow the Federal Government to do this sort of thing.
My point though is that I believe people should be allowed to fail and succeed on their own. The more we allow government to be our “nanny” the less freedom we have.