The Last Capitalist

A site dedicated to restoring individualism in the United States of America

Posts Tagged ‘Congress’

Government Takes Huge Step Towards Owning Everything

Posted by jemartynowski on May 20, 2009

I know my brother, my dad, and everyone else will tell me I’m stupid for supporting the free market on this one.  When they think of things like the credit card industry and how they charge huge rates on people who default or miss payments, they immediately say, “those people are getting screwed.”  So obviously, it must be good, in their eyes, that the government is stepping WAY beyond their constitutional authority to regulate the credit market.  They are protecting the innocent civilians.

This thinking is why we are on a straight track toward fascism.  We cannot expect the government to come in and fix all of our problems.  If we are stupid enough to screw up a credit card or miss a payment on something, there is a reason they make us pay those huge rates.  If they do not, the company loses money.  Lots of it.  Now, we all know these companies are not going to lose the money the government is telling them to lose.  They are not in the business of charity.   What does this mean for you, the timely-paying, upstanding credit customer?

You are paying more.  From now on, you will have to pay more to borrow, which means you will probably do less of it.  Which means the economy will not have you contributing as much as you have in the past.  It also means, if you are a business owner, you will have less money for innovation.  It means, if credit is cheaper to those who default more, they will borrow more, which is obviously bad for the economy.

When the government interferes, they make things worse.  The world is not perfect.  It never will be.  But every time the president says, “we have to…” insert thing here, he’s trying to stifle the free market.  And when he does that, he only creates a situation that needs more regulation.  And more.  And more. 

The free market may allow for some people to get completely screwed, and I do in fact feel sorry for those people.  But I ask you this:  is it better to save some people from bad credit than to live in a country that does not allow for innovation, stifles creativity, and eventually squashes the individual? 

Sadly, I think I know the answer many people would give.


Posted in Capitalism and Politics, laissaz-faire capitalism, Socialism and Democrats | Tagged: , , , , , , | Leave a Comment »

Outrage Misplaced Over AIG Bonus Pay

Posted by jemartynowski on March 17, 2009

“Those jerks!  They ran the company into the ground, took taxpayer money, and now they’re paying out large bonuses to themselves!”  We’re hearing this all over from both sides of the aisle in Washington.  President Obama and others are coming down on this company for paying bonus money to people who actually did hit their contractual goals.  Sure, this is a mistake, but one that was made a long time ago, when these contracts were signed.  The bigger mistake was made by the United States Government.

The people in power are doing a great job getting the American public all fired up over this, and they should be.  The problem here is that they are misplacing their anger.  The government of the United States, with full support from our president, approved of handing this company money knowing full well that these bonuses are on the books, payable because these people hit their goals.  This is one of the thousands of things the government should have looked at before they passed any bailout plan for anyone.  Sure, I don’t think we should have passed any handouts of our children’s money to companies, because it results in just what we have coming:  government control over them.  But the point is the misplaced anger.

President Obama, Democrats, and Republicans are blasting the company now because of these bonus payments.  Really, though, are they just mad at themselves for being suckered into paying for something they didn’t do enough research to know about?  What’s the difference between these contracts and the contracts the company had with crappy homeowners?  Legally, nothing.  The government just wants to pick and choose who gets what, which is the basis of this screw-up to begin with.

So, yes, be mad.  Just make sure we know where to direct our anger:  the stupid people who are too dumb to read contracts before throwing money around (the same people who want to decide what treatments we get medically.  Woohoo).

Posted in bailouts, Capitalism and Politics | Tagged: , , , , , , | 1 Comment »