Free Market or even Capitalism doesn't include Bailouts
By dark_joev
@dark_joev (3034)
United States
June 7, 2011 9:11pm CST
The Free Market or even Capitalism isn't something that includes bailouts for failure. The Economy is weak because we kept the weak businesses in business. All in the name of keeping Jobs what people seem to forget is that if GMC was to collapse like it was looking like it was. Other car companies that are still being successful like Toyota or Nissan even Ford would of purchased the Factories and would of hired the employees that where once GMC employees why you may ask well this is a simple question to answer because the workers would be trained and would know how to put cars together also they would know how the factories run. The companies would also jump at this because it is cheaper than building your own factories.
How about the failed Banks well these are in most cases Public owned companies and well they shouldn't be treated any different. I mean we should of allowed companies to buy them or even let them go out of business. This would of allowed people to move there money to another Bank that didn't take the risks that the ones that failed did. The FDIC would of had to pay out some money in some cases but in most it wouldn't because it was the debt that the Bank had. It was bad business just like the GMC.
This would of sunk the Economy for awhile because people would of lost a lot of confidence in the market and the market would make the adjustments on its own to gain back the trust of the consumer to keep from going out of business themselves this may of taken several years but by now we would be in a better position and the economy would of destabilized where now their is a huge issue of devaluation of the United States Dollar. Partly due to the loans and the money that was generated to temporarily rebalance the economy which actually hurt the economy but keeping in place failed businesses.
3 responses
@Adoniah (7512)
• United States
9 Jun 11
If they were not such a bunch of greedy bas-tards in the first place then they never would have gotten themselves into the mess they were in. The Gov. has now taught them that they can be greedy and the Gov. will bail them out too. WOW, ain't that grand.
I say let us stick with the rule of the Survival of the Fittest in Business. If you cannot cut the mustard then you lose! That is how the small businessman has to do business. You do not see them getting bailed out. But, in spite of all the crap being thrown at them they seem to be surviving. I did it for years until I broke by back...You would not believe the taxes and fees that are dumped on the small businesses.
@dark_joev (3034)
• United States
9 Jun 11
Actually I do. I started my own company when I was in the 7th grade it didn't last long as I really had no Idea what I was doing so it completely failed. I am currently starting my own business which I will be doing online it is the same one I tried when I was in 7th grade but this time I have the knowledge that I lacked. The Business I started in 7th Grade was a Game Development company. It went over budget and it ran into many problems along the way mostly to do with my lack of knowledge in programming and the Game Development cycle.
Yeah being in business for yourself is basically punished by the federal and local governments.
@BalthasarTheRat (656)
• United States
8 Jun 11
"this would have sunk the economy for awhile" you say at one point. That is a bigger problem than you make it out to be. If the economy had to recover from the loss of even a few of the banking and automotive companies, we would have had a depression, instead of a mild recession. Fewer people with jobs in a tanked economy means fewer people to spend which means less purchasing which means no new hiring by the surviving companies, quite the opposite of what you assumed. Without government spending, businesses would have retreated even further and had thousands of more permanent lay-offs.
To amend your title: The Free Market doesn't care about the individuals in it. A whole generation could rot and starve waiting for Free Market stabilization.
It is far too late to try Laissez-Faire economics in our Socialist system. That wasn't a road that could be undone easily. Like it or not, we are stuck with active government participation in the economic system.
@dark_joev (3034)
• United States
8 Jun 11
Well the government doesn't know how to stabilize the market its not something any of the Senators or even a Representative have any experience in this is apparent by how well they run the Government. They have kept the Economy in a down turned state where in a Depression or a Recession we would of came out of it because people and companies would innovate which would of led to more jobs in the long run where now we have people who are solely surviving on a Government and because of the Governments massive amount of Dollar creation we could see the end of the United States dollar for things like a EU type of currency. The Government needs to stay out of the market it can't do it. The Market on the other hand can do it because the individuals that run the big companies will seek out greater profit and the economy would bounce back a lot quicker than it has right now. The Economy collapse has been going on since what like 2005 if not earlier. The Market would of adjusted to the changes that the Fall of GM and a few of the largest banks. Companies that where doing the right thing and deserved to be in business would of picked up the market share and many people would of traded in their GMC car or truck for a Ford,Toyota or Nissan. Which would of caused the economy to grow in the Car Companies that where doing a good job ie making a product that people wanted. The current state of the United States Economy won't improve until some massive changes are made and the market is freed up to handle itself with very little government intervention. The people already decided that they didn't like GMC and as for the Banks they shouldn't of took the risks that they did. Its that simple.
@OpinionatedLady (5965)
• United States
8 Jun 11
True, true. We are heading down the road of depression anyway so at least our country wouldn't be even deeper in debt as well. I am not a financial whiz but even I can see that these bail outs only helped the rich and not the common person. Yes the CEO of these companies would have had to sell off their absurd properties and pay back a lot. Well that is their punishment for being stupid not mine.
