Posted by: brian | October 29, 2008

I want money! Again!

Critic Blasts Plan to Rescue U.S. Carmakers

Peter Morici, professor of logistics, business and public policy at University of Maryland’s Smith School of Business, on All Things Considered: “We can’t use the Lehman Brothers event as an excuse to subsidize every company or every large company that finds itself in trouble, or we’re literally going to be in a situation where people are free to make profits if they’re smart, or the government’s going to pick up their losses if they’re not. That makes no sense for running a market economy.”

I really don’t understand why GM has any right to a government bailout. If an individual person tried to ask the government to pay off his debts so he doesn’t have to declare bankruptcy, the conservative jabberwockeys would be up in arms about “the welfare state” and the “culture of entitlement.” WTF? Granted, I don’t pay attention to the Bill O’Reillys of the world, but I’ve heard enough of their rants to know what they’d say. Are they griping about this situation in the same way? I don’t know, but I’d be pretty shocked if they were.

Why is it that they think it’s okay to pump billions of taxpayer dollars into corporations, but making sure that people have adequate health coverage or quality education is wrong? Fuck you, Henry Paulson, and Fuck you George Bush, and Fuck every congressperson who voted for the most socialistic government act in decades. The “free” market can’t be completely unregulated – even Greenspan realizes that – but it must be free enough to do what it has done in terms of wealth-building and innovation. And that means that corporations must learn to stand (or fall) based on its own merits and its own ability to keep up with change. GM hasn’t done that. The entire American auto industry has resisted change, and while gas prices were low, they were able to hang on. Now they either have to adapt to a different market, or die. That’s how the invisible hand works. If you can’t keep up, you’re out of the game.

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