Bailouts


I can’t resist any longer, I simply MUST comment on the financial state of our country. This is going far, far beyond ridiculous.

Let’s start with the election.

We have an older, experienced, conservative gentleman running for one party’s nomination; we have a younger, very less-experienced, liberal-but-trying-to-stay-in-the-middle gentleman running for the opposition.

The latter is elected, based on his ingenuousness, his hope for change (see how nicely I combined the rhetoric?), his outrage against government spending and waste. Of course, at the exact same time, he’s planning on expanding government and “bailing” out the entire population.

But wait – he spoke of helping the poor, the middle class; sure seems to me that this is NOT happening.

I haven’t benefited; I know of no one, personally, who has. Yet the big corporations are certainly being enabled. Hey, the popular line begins, but this will all trickle down to the working poor and to the middle class. Really. My questions are “how” and “when”?

I’m sure not going to use “Joe” as an example, but let’s look at “Bob’s” situation:

Bob owns a business; he employs five people, and they earn an average of $15 per hour. Bob’s made some not-so-good decisions over the years, and discovers he needs a cash infusion of $100K to meet payroll and to keep his business afloat.

He goes to the bank, and the bank says: gee, Bob, we see you’ve made some bad decisions about ten years ago, and even though things are looking up for your business, your credit stinks. Sorry, can’t loan you any money.

Bob is SOL, and so are his five employees; Bob’s business closes, and he and his workers file for unemployment.

On the other hand, we have John. John is CEO of a large corporation which employs 100 people; their average pay is $50 per hour. John has also made some bad decisions, and he, too, needs additional capital to pay his employees and keep his business going. However, unlike Bob’s paltry amount, John could really use $1.5 M to stay afloat.

John applies for Federal bailout money. The government asks if he’s made any bad decisions, or – latest news – has paid all his taxes over the years. Nope, says John. The government responds with: great, we’ll take your word for it, gosh, we sure don’t want you to shut down your business – here, take that million-plus dollars and guess what? We won’t even hold you accountable for it!

Something is definitely rotten. We can all smell it.

See, here’s the kicker – with John’s employees earning that $50 per hour, they are making over $100K a year. Who is in a better position to weather unemployment, they, or Bob’s employees who earn about $30K per year?

Not to mention the unfairness of Bob being grilled to the nth degree about his business practices, while John gets off scot-free. Yet this is what our government thinks is going to help the economy.

One more issue: where the heck are all these billions coming from? Why, the taxpayers, of course. It’s more borrowed money, which will have to be returned in some manner; it’s not like the Treasury just keeps printing it. And the really bad part? It’s not even “real” money – it’s just an accounting system. Being overseen by all these Federal appointees, the same ones who can’t manage to pay their own taxes.

4 comments on “Bailouts

  1. Jim Brasher says:

    Robin has found the problem; “Now, what is the solution?”

    Like

  2. matt says:

    This blog’s great!! Thanks :).

    Like

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