The upcoming year for Barrack Obama will be a long and busy one.
Issues ranging from the War in Iraq, the economic situation and foreign relations are just a few of the whirlwind events that will likely engulf the new President’s attention in 2009.
But the one issue that will dominate the administration from the start is the economic stimulus package that is currently being debated in Congress.
Obama’s place in future history books could very likely be staked on how he handles the economic downturn.
To most political pundits and average citizens, the idea of using taxpayer dollars to bail out established American companies like General Motors or Wells Fargo is a necessary idea. We cannot let such large companies that employ thousands of people go under.
Most of America will gladly watch billions of hard earned taxpayer dollars go to help such companies stave off bankruptcy.
But there is another point to consider in all of this. The list of companies looking for government handouts has grown to a size that could cross the Grand Canyon and back.
Not all of these corporations should receive even a dime in federal assistance. You heard me right; Some should be allowed to either fail or get bought out by someone else. So let me explain this before I get any messages saying I am crazy to think, let alone write this for all to see.
Since we live in a free market economy, the life of a business is determined on how well
they can make profits and compete in the marketplace.
Companies that do well thrive and expand, while those that cannot succeed ultimately fail.
This cycle ensures that only the most efficient and beneficial to the economy prosper, because they do the best job of delivering the necessary goods and services. Throwing money at corporations that have failed is a waste of taxpayer dollars since it upsets the business cycle that promotes only the profitable businesses; not to mention some of these companies will still fail in the end
When one company goes under, another will step in to take its place or another will find a better way to operate. For example, should the Federal Government have bailed out vinyl record companies when CD’s came along?
Of course not. Compact discs were more advanced and had more applications than records ever could.
New jobs were created in various other industries and those who might have lost jobs in records, found new ones in industries created by the new technology. It is a message that might be hard to take in for some, but it is a lesson that those in Washington would do well to hear.