Big Bail-out, Big Dream?
Big Bail-out, Big Dream?
By Jim Butcher
In today’s economy it is common to
hear the words “Bail-out” and since before general elections in November 2008
the economy has been on the top of every-bodies mind. Both Republican and
Democrats have different views of how an economy in recession should be cured,
with opinions ranging from doing nothing to 1 trillion dollars of federal
funding. All across the United States there are businesses, and State
Governments asking for funds to help them on the verge of bankruptcy.
Businesses include the insurance industry, mortgage industry, car industry,
airline industry, credit card companies and Wall Street. Government entities
include the state of California, New York, and New Jersey. Some of the issues
that come up with the bail-out are jobs, fiscal responsibility, and government
involvement in private industry. On the topic of jobs, issues of job lost and
how higher unemployment rates will affect the economy, creating a downward
spiral effect. Fiscal responsibility discusses government programs and spending
habit that have lead to their current financial woes. Government involvement is
private industry talks about a capitalism economy and government involvement in
a capitalist economy. These concerns are the core of the bail-out plan and
further discussion will lead to a greater understanding of government “big
brother” type function.
It is my firm belief that the United
States Government should not to bailout the economy and should not be involved
in private industry and should allow a company to fail. I also believe that by
bailing-out governments and companies Americans are moving from a free
capitalist economy to a restricted Marxist economy. An economy where the Government
decides how Americans spend, invest, live and prosper. Ultimately the bail-out is against all of the
fundament principals of the United States and the free market system. The
opposition essentially feel that it is the government’s responsibility to take
care of Americans. They also feel that such a stimulus will correct the economy
and solve our counties financial issues. President Elect Obama on March 27th
2008 essentially claims that the American economy has embraced an ethics of
insider training and greed and that Americans should all prosper together. President
Elect Obama also talks about heavier government regulation and government
involvement. Further examination of this only leads to less government
involvement in private businesses and supports the idea of no Bail-out. This is
a breach in the fundamental ideology of the Framers of the Constitution of the
United States of America. And is a testimonial to out-of-touch leadership, big
business lobbyist, wild government spending, and top heavy leadership. The
Bailout is a band-aid over a gapping cut and does not cure the underlying
issue.
How
involved in your life should the government be? As American we have the right
to make our own discussions. As the husband of a teacher and a “capitalist”
American citizen, I feel that it is our right, and not small government
entities, to decide what do with their lives. Freedom of expression is the
fundamental ideology of American Culture; and being a society based on freedom
of expression, it is essential to teach this elementary philosophy. Forcing us to invest in failed businesses is
a contradiction of American beliefs that creates more dependency on government
agencies; which resembles more socialism/communism. Therefore, in a society
founded on freedom of expression and not government control i.e.
“socialism/communism”, Americans should have the right to make their own
decisions.
I believe a cartoon by Tom Toles of the Washington Post
named “Red and blue states will work together” put it best. The picture also
shows the United States on the map upside down and backwards and in the center
of the picture is a caricature of President Elect Obama. Uncle Sam is in front
of him and he tells him we need to work together. The image potraited a certain
image of chaos that made the viewer think. Is this what really needs to be
fixed and are we doing it for the right reasons? The Bailout is fixing the rich
and securing government jobs, under the disguise of helping the middle class
people.
Here is what I mean. Congressman
and Senators make 169,300.00 plus benefits per year as according to usgovinfo.about.com.
There are 535 Members of congress this totals 88.382 Million dollars of salaries
which they also receive a cost of living adjustment annually. There benefits include: a separate pension plan
called the Civil Service Retirement System (CSRS). Members of Congress also receive retirement
and health
benefits under the same plans available to other federal employees and
become vested after five years of full participation. As it is for all other
federal employees, congressional retirement is funded through taxes and the
participants' contributions.
They also receive a personal staff allowance which includes:
“Representatives' staff allowances can be used to hire up to 18 permanent and
four non-permanent aides divided between the members' Washington and district
offices. Up to $75,000 of a representative's staff funds can be transferred to
his or her official expense account for use in other categories, such as
computer and related services. The maximum salary allowed House personal
staffers in 2005 was $156,848. Senators' personal staff allowances vary with
the size of the members' states. Senators may hire as many aides as they wish
within their allowance; typically this ranges between 26 and 60, depending on
the size of the state and the salary levels offered to the staffers. The maximum salary allowed to Senate personal
staffers in 2003 was $150,159 (1999: $132,159); for Senate legislative staffers
the maximum salary in 2005 was $153,599.”
They also receive
expense allowances which include: “for members, kept separate
from personal staff allowances, cover domestic travel, stationery, newsletters,
overseas postage, telephone and telegraph service, and other expenses in
Washington and in the members' state or congressional districts.” They also receive the Franking Privilege,
which allows a member to mail official letters and packages under the members'
signature without charges for postage. Foreign Travel, outside employment
income, domestic travel and housing expenses. When this is all said and done
Americans are spending a million dollars per year per representative when the
average Americans pay in the United States as according to the US Census Bureau
is about $50,000.00 dollars. The $535 Million dollars per year does not include
federal judges and there staffs, the president and his staff, other government officials,
and state governments.
Another example of government being out of touch is the
Governor of Illinois, Rod Blagojevich. The man is making $155,600.00 per year
plus benefits as according to stateline.org and was trying to sell the senate
seat to the highest bidder as according the FBI reports on the subject. The
State of California as of October 2 2008 requested $7 billion from the
Secretary of the Treasury in letter from Governor Schwarzenegger. This is a
sign that California, other states and local government spending is out of
control. This becomes more apparent especially when other states like Texas and
South Carolina are telling them that there spending is out of control.
Like I said the bail-out will not
fix the problem. In fact it will only make the problem worst by like Obama said
create an ethic embraced an ethics of insider training and greed. Upon further
examination of the issues, if the companies are not made to fail they will
learn nothing and the CEO’s will make millions of dollars while and suffer no
consequences for there poor choices of judgement. Instead Americans will
perpetuate a country based on government intervention and freedom to do
nothing. Like I stated the bail-out is a band-aid over a gaping wound. Like any
other business it is best that we cut our losses, lick or wounds, and learn
from our experience. The free market will create investor awareness and
ultimately save us billions of dollars. In conclusion the evidence and
resources referenced in the body of the paper show the most prudent action is
to allow the free market to take care of itself and by allowing the basic principles
of free enterprise to happen we can fix the underlying issues of greed and
power rather than covering them from later generations. Freedom of expression being
the fundamental ideology of American Culture and bases of society, it is
essential to teach this elementary philosophy. By forcing American to support
and bailout failed businesses ventures is a contradiction of American beliefs
that un-minds the whole system of freedom of choice.
Works Cited
Stout,
David. (September 20, 2008). The Wall Street Bailout plan, Explained.
The New York Times. Retrieved 12/8/08 from
http://www.nytimes.com/2008/09/21/business/21qanda.html?_r=1
Cover, Matt. (October 31,
2008). NY, NJ Governors plead for state bailout; SC gov.
Urges Restraint. CNS
News. Retrieved 12/8/08 from http://www.cnsnews.com/public/Content/Article.aspx?rsrcid=38569
Hotakaninen,
Rob (December 1, 2008). States
want their own federal financial bailout. McClatchy Newspapers. Retrieved on
12/8/08 from http://www.idahostatesman.com/1425/story/571171.html
Brown, Carrie Budoff (September 19, 2008) Obama Basks bailout plan.
Politico. Retrieved on 12/8/08 from http://www.politico.com/news/stories/0908/13631.html.
Gandel, Stephen. (November 16, 2008). Paulson Credit Card bailout draw
growing criticism. Time Magazine. Retrieved on12/8/08 from http://www.time.com/time/business/article/0,8599,1859381,00.html
http://thecaucus.blogs.nytimes.com/2008/03/27/obamas-speech-on-the-economy/
Toles,
Tom. “Red and blue states will need to work together Cartoon. Washington
Post. 8 December, 2007.
<http://www.washingtonpost.com/wp
srv/opinions/cartoonsandvideos/toles_archive.html