Category Archives: Short Posts

of quick and less careful thoughts

Bailout Companies That Keep Workers

I was listening to Alan Chartock on WAMC interviewing Bernie Sanders on Tuesday. And I was thrilled to hear Bernie Sanders say that a business should not exist if it is too large to fail. That is so true!

It should be obvious to all of our leaders that big businesses subvert free market economies like ours; especially when those businesses are too big to fail.

Let me add that even though we are now being forced to bail out those big businesses, we should at least demand that these businesses help the economy… now. They should not be allowed to lay off any of their employees until they return the bailout money. And those big financial companies should not be given another cent until they hire back all of the employees they recently laid off.

That bailout money should have first gone to maintaining the payroll for regular employees. Instead they used the bailout money to maintain the payrolls of highly paid executives who laid off regular workers.

These bailouts are supposed to help regular people. We should not be bailing out companies that are laying off their workers. And if a company comes forward for a bailout saying that it is too large to fail, then we should break that company up.

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International Bailout Competition Begins

The US has provided its American automobile industry access to money that it otherwise would not be able to get.  Car companies in other countries around the world say that this bailout is a subsidy that gives American manufacturers an unfair advantage over their foreign competitors.  Consequently, foreign car companies are asking their governments for bailouts too.  Due to the nature of international competition, we can safely expect other industries around the world to behave the same way.