When Will the Bailouts End?
Dennis AuBuchon
December 09, 2008
Today there is much talk about bailouts from the government and many have already been given and may have been needed but where do the bailouts end. The current financial crisis is not likely to get better soon as there are many areas of society that are hurting. Every segment of society is affected by the current crisis. The question which begs to be asked is should the government bailout everyone. I do not think so. In the first place, the government does not have an endless amount of money they can give to everyone and therefore decisions need to be made where and who to help to shore up the economy. While many may be in need, we as individuals must take responsibility for our actions.
In regards to some of the bailouts, I understand that conditions have been part of the agreement in some cases to receive the funds. This is as it should be. When banks loan money they want collateral for the risk they are taking and the government should insist on the same. Government does not have the capability or responsibility to bailout all industries hurting in the current financial crisis. Many companies have already been given money by the government to help them survive the present situation. In some cases, it may have made sense based upon the critical nature of the industry to the economy.
There seems to be a steady stream of requests for aid. Not all requests qualify for action by the government. While industries are hurting so are state governments. The downturn in society has hurt the amount of tax revenue that states will be receiving in the next few years and many are facing shortfalls. These shortfalls must be addressed by balancing their budgets with the needs of the residents of their individual states. Another point to make is that we have become use to governments providing many services, which are not their responsibility. We as individuals must stop asking government for services for which we as individuals should be providing for ourselves. This may be difficult but necessary.
The current request for funds involves the auto industry. While this is a critical part of society with millions of jobs on the line changes need to be made in the way they do business. If any funds are approved to help this industry, everyone that is a part of this industry must agree to changes for the survival of the companies involved. I feel that society will never be the same in the future as a result of the current financial crisis. While no one likes the present situation, it has caused everyone to rethink their priorities and make adjustments where they can. Many have lost their jobs as a result of the downturn in the economy and I feel for all those affected.
State governments and the federal government will need to make hard decisions to get this economy out of the present crisis, which is not only affecting us but the world as well. Not everyone will like the decisions made. Everyone likes to get money from the government and in sometimes it is justified. One example is social security, but others are either not working or lack the funds to address them properly. All governments must wisely spend the funds they receive from their citizens. The stronger the state and federal governments are the more people will feel more secure and the economy will start to turn around. The present cost of bailouts is the $700 billion passed by Congress to ease some of the financial crisis. The current mindset is to spend billions of dollars to shore up various segments. More is being considered and any additional funds allocated must be limited to prevent mortgaging the future of our children.
The last points to make are that we as individuals must take responsibility for the decisions that we make. Industry executives who now find themselves in financial constraints must also take responsibility for the decisions they have made. It is not the responsibility of government to help every industry when they make bad decisions. Companies who have made bad decisions in the past have suffered the consequences. Filing bankruptcy, in some past cases have helped companies restructure and they are better for it. I am not saying bankruptcy is an avenue that needs to be taken in all cases but fixing bad decisions by companies is not the responsibility of government even though there may be significant impact. While the federal government may have been involved in some of the conditions, which caused the present financial crisis others were involved as well. When government tries to dictate the way companies do business and the decisions they make, they should be fought if they would not be made under normal circumstances.
In regards to some of the bailouts, I understand that conditions have been part of the agreement in some cases to receive the funds. This is as it should be. When banks loan money they want collateral for the risk they are taking and the government should insist on the same. Government does not have the capability or responsibility to bailout all industries hurting in the current financial crisis. Many companies have already been given money by the government to help them survive the present situation. In some cases, it may have made sense based upon the critical nature of the industry to the economy.
There seems to be a steady stream of requests for aid. Not all requests qualify for action by the government. While industries are hurting so are state governments. The downturn in society has hurt the amount of tax revenue that states will be receiving in the next few years and many are facing shortfalls. These shortfalls must be addressed by balancing their budgets with the needs of the residents of their individual states. Another point to make is that we have become use to governments providing many services, which are not their responsibility. We as individuals must stop asking government for services for which we as individuals should be providing for ourselves. This may be difficult but necessary.
The current request for funds involves the auto industry. While this is a critical part of society with millions of jobs on the line changes need to be made in the way they do business. If any funds are approved to help this industry, everyone that is a part of this industry must agree to changes for the survival of the companies involved. I feel that society will never be the same in the future as a result of the current financial crisis. While no one likes the present situation, it has caused everyone to rethink their priorities and make adjustments where they can. Many have lost their jobs as a result of the downturn in the economy and I feel for all those affected.
State governments and the federal government will need to make hard decisions to get this economy out of the present crisis, which is not only affecting us but the world as well. Not everyone will like the decisions made. Everyone likes to get money from the government and in sometimes it is justified. One example is social security, but others are either not working or lack the funds to address them properly. All governments must wisely spend the funds they receive from their citizens. The stronger the state and federal governments are the more people will feel more secure and the economy will start to turn around. The present cost of bailouts is the $700 billion passed by Congress to ease some of the financial crisis. The current mindset is to spend billions of dollars to shore up various segments. More is being considered and any additional funds allocated must be limited to prevent mortgaging the future of our children.
The last points to make are that we as individuals must take responsibility for the decisions that we make. Industry executives who now find themselves in financial constraints must also take responsibility for the decisions they have made. It is not the responsibility of government to help every industry when they make bad decisions. Companies who have made bad decisions in the past have suffered the consequences. Filing bankruptcy, in some past cases have helped companies restructure and they are better for it. I am not saying bankruptcy is an avenue that needs to be taken in all cases but fixing bad decisions by companies is not the responsibility of government even though there may be significant impact. While the federal government may have been involved in some of the conditions, which caused the present financial crisis others were involved as well. When government tries to dictate the way companies do business and the decisions they make, they should be fought if they would not be made under normal circumstances.