Some thoughts on bail-outs
I finding it hard to really get behind the bail-outs that are being proposed in both the US and Canada–and around the world. One of the premises of the capitalistic system is that good companies rise to the top, and bad companies fall away. It is up to the consumer to decide the successes and failures of companies. People who know me would probably think of me as left-leaning, but I have a hard-time with Governments using tax-payers money to help prop-up failing businesses. I believe that governments are responsible to the people of the nation–their citizens and tax payers. I therefore believe that if government money is needed to get us out of this economic mess (which I’m not sure I agree with), it should be directly invested into the people of the nation. That could mean prolonged EI benefits, money to schools and universities to educate the people, funding infrastructure projects or financial help with STARTING a business. Not help mature companies that are not able to react to the times, or have huge corporate wages and perks, and have out-dated technology.
I know I previously thought that Nortel may be deserving of a bail-out, compared to the big 3 automakers, but now I’m not so sure. Maybe from the remnants of Nortel there will be talented people who will be able to start new innovative companies. One can only hope.
Steve,
The only saving grace on the bail-outs is that they are structured loans, so in theory, the government should get that money back once things bounce back. I’m with you though on not propping up a company that not only overpays in today’s economy, but continues to offer perks that most of us could only dream about. I don’t know all the conditions that were put on the loons in the US or if the Canadian government applied similar conditions, but any funds should come with a ‘common sense’ clause where they need to bring their wages and benefits in line with their competitors. Otherwise I say we auction off all of their capital and let Honda or Hyundai buy it up and produce more affordable cars for everyone.
James Bull - January 30, 2009 at 1:48 pm |
James, thanks for the comment. As you mentioned having conditions on the bail-outs would be more palatable. Or else you get something like this happening:
http://www.cnn.com/2009/POLITICS/01/30/executive.pay/index.html?iref=mpstoryview
TigercatTomorrow - January 30, 2009 at 8:31 pm |