Saturday, October 04, 2008

My 2 Cents On The Economic Bailout

What do I think should be done about the bailout? Well, every single ounce of principles and beliefs in me whole-heartedly opposes any bailout. That would be socialism at it worst! It has been said that it is in times of extreme fear or danger that government seizes powers that it should not have. Whether that be for war or taxes or whatever other personal gain. It happens and is happening now!

Why should the American people give up $700 billion worth of their hard earned money to bail out a bunch of rich corporations that didn't follow good business practices? Then again, why do so many Americans oppose bailing out these corporations when 6 months ago, many of those same individuals were calling for our government to help bailout those people in the mortgage crisis who were losing their homes because they couldn't pay their mortgages because they didn't follow good budgeting practices as far as their home goes?

As for me, like I said before, I whole-heartedly oppose the government stepping in to help citizens in a mortgage crisis OR corporations in this wall-street crisis. Why? Because saying the government should help is just a clever way of disguising the fact that what is REALLY going on is that wealth is being redistributed through taxation (marxist philosophies). It isn't the government stepping in, it's US, the citizens and taxpayers the step in by giving our money AGAINST our wishes to the government to use. In the mortgage crisis we see wealth coming from the fiscally responsible upper and middle-upper classes and business owners to help these irresponsible 'wanna-be' home-owners, and in the wall-street crisis we see the wealth coming from the responsible middle, upper-middle, upper classes and business owners to bail out these filthy rich and irresponsible corporations. Notably different is the fact that we ALL suffer through a recession and possible depression if we don't support this marxist bailout. A crappy position to be in if you ask me. And when we increase taxes on the upper-class or middle-upper class and business owners we lose jobs because companies either are forced to move overseas or go under. Just like raising minimum wage! If you keep taking money from the people who know how to make money by spending it wisely, and giving it to the government to spend UNWISELY (this is called taxation) then this unfair taxation will result in those people no longer being able to make money and your government no longer has anyone to take money from. Over taxation is VERY dangerous!

As for the bailout, I say IF we bail them out, we do it with several conditions. If I were a Senator, some of my conditions would be:

Repayment of loans with interest by these corporations back to the government. I don't want to see government in charge of selling these stocks back as government is too easily corrupted and won't do what is fiscally responsible, but will sell when convenient and pocket as much as possible.

2.) The government needs to set up a specific account for these loans so that as they are repayed by the corporations, each tax year, all of us citizens/taxpayers that funded the loan receive our money back WITH INTEREST, either in the form of tax credits or refund vouchers. The problem otherwise, is that as soon as the loans would be repaid to the government and hit our treasury, they would be earmarked and spent by politicians before we as taxpayers (the original funders of the loan) ever see any money in return.

3.) A guarantee of transparancy in the form of a website that details every transaction made on Wall-Street in REAL-TIME! I want guarantees that this will never happen again. From what I have heard, setting up a government organization to oversee wall-street would not be effective. First of all, I oppose bigger government and secondly I believe that government organizations are easily corrupted. I have also heard that wall-street would have no problem staying at least one step ahead of any government organization set up to monitor them. I agree with Mark Cuban that the best form of transparancy and protection that we can have would be to setup a website that details every transaction made on wall-street in real-time so that any and all citizens with access to the internet can monitor these business practices. And as Mark says, 'they would monitor them VERY closely as many citizens stand to make or lose money and other's are very watchful of corruption.

I'm sure there are many other conditions that I can think of but these would be without exception for my 'yeah' vote!

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