It’s my opinion that the governments current approach to buying and bailing the country out of the financial crisis is doomed to failure. In order to solve the financial crisis we (individuals and businesses) need to do things that will cut costs and generate a profit. Mailing people and businesses checks doesn’t do that, certainly not when you give it to large corporations. In fact I think it does the opposite. It’s like welfare, social security and unemployment, the concept sound good on the surface, but in reality these programs take away incentives and encourage people and businesses to become dependent on the government rather than themselves.
In the past there have natural ups and downs or cycles in business. When one business failed, another came in behind those that failed, saw opportunity, picked up the pieces, did things differently, invested some time and money and turned things around. Unfortunetly, when the government started getting involved, it disrupted the natural and needed cycle of success and failure. It messed up the entire system and now we are all paying the price, or I guess I should say we and our grandchildrens, grandchildren will be paying the price.
For us to get out of this mess, govenment needs to get out of the way of small business owners and let those that screw up, fail, so others can find a way to turn a failure into an opportunity that generates a profit. Until this happens, sending out checks will only make the problem worse and the debt larger. That’s the way I see it. What do you think?