The question was asked in a comment about the morality of bailouts. The simplest answer is that they are immoral on any level other than some kind of sociopathic Randian viewpoint that all actions in self interest are inherently moral. There are two basic reasons I would give to this assertion, the first being the effect on society from subsidizing failure and the second being the individual's loss of integrity from accepting such a bailout.
On the first point, society is always worse off when the costs of an action are bourne by society but the benefits are privatized. This is the worst of all possible solutions to a problem because the risk incentive is taken out when a third party, namely you and I, pays for the failures of someone else. Instead of bailing out GM and Chrysler, society would be better off with the same money having been used to incentivize new American car companies to create new cars to compete with foreign cars. In my own experience the problem the American car makers have is two fold: one is that they made SUVs because of bad government policy to give tax breaks for SUV's which were labelled flex fuel and also because of short term greed. This led to a model lineup from the two failing firms which got abysmal mileage. The Chrysler PT Cruiser got an EPA estimated 19 MPG in the city. In fact, it had no model in 2007(used as that was when gas prices rose quickly) which got over 30 mpg. Neither did GM in any of its lines other than Saturn(which is ironically the main one they have scrapped). Ford at least had the insight to market a mileage competitive vehicle in the Focus, which is why Ford looks like it could survive without the bailouts. I drive a Mazda because it gets good gas mileage at a low cost myself, and once I can say the same for an American car in the future I will get one. Ford also has a good truck business which has kept it afloat since the F150 is still close to the top of best selling vehicles in the US.
The second reason the bailouts are bas is because they destroy the integrity of the individuals and firms. Once a firm ceases to operate on the profit motive, their purpose for existence as a business is gone. A firm which operates in order to get government money no longer has anything to offer the market, so subsidizing it causes money to be wasted that could go elsewhere, aka opportunity costs. It should be a mark of shame to accept a bailout, instead the car companies clamor for more.
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:-) I am NOT the only one who's wide-eyed and a young silly idealist --- I see your fire! Hah! but still like a typical rational detach man... - I am NOT complaining - just making an observation! So, yea, my parents too--- say let them go belly up --- I agree -- - but then --- how about the rest of the workers and their families.... - yes, there were lay-offs even with them not completely going belly up --- and say we do invest in a new car making company that is eco-friendly and can compete with those fuel efficient foreign competition - do we have them already? --- I mean another car company other than GM or Chrysler or Ford? Have we got the manpower to make them now? Learning institutions to train and teach skilled workers for these? -
My f/u question is this what happened to the American edge in everything? In Sports -- have you seen the Olympics we use to dominate in almost all... we got soft... car making business... we got greedy and soft textiles... we got greedy and soft... we become too complacent... have you seen our arts? When was the last time we produced a film that inspires you through and through not the high school musical and mushy love story... American education system used to be the envy of the world... world class --- now where are we?
The best art are now produced by geniuses from third world countries! Art that is not just for decorative purposes only... art that inspires a person to think to reflect --- sorry for digressing... well--- so there we all go --- hopefully not down the drain of complete oblivion or annihilation!
We have become mushed and soft- spiritually and intellectually!
We are so wrapped in this bubble of comfort --- we perhaps have even erased the word sacrifice from our own personal dictionary!
And with regards the deficit and debt counter you have --- I've learned to ignore it --- I am relying on the Feds ability to print funny money! my taxes going up before I even have my full time job? --- no problem... as you said --- in 8-16-24 years time ... we may have your formula from the instruction of a shampoo bottle -- lather, rinse, and repeat! Unless of course, you guys wanna try my magic formula.... simple at first glance- even simplistic and child-like --- NOT childish --- there's a huge difference... till your next post... --- BUT remember -- I will wait for your answers to my questions below! Remember I have a memory of an elephant and a horse! LoL
I want our American edge back!
oh, yes -- I love my PS'es
It's about time that we accept the fact that America's life or survival depends on new and fresh blood in the forms of Immigrants be they legal or illegal -- did I say I am supporting breaking immigration laws --- No! As in No, no, no! but face it --- we are all immigrants from all over the continent and God's created planet... -- and the face and COLOR of America is CHANGING! Yea! -- we may NOT be aware of it- we may fight it... we may deny it (good luck with that one) we may NOT like it -- TOUGH LUCK! Remember people, we have been contracepting and killing babies galore so, whadya all expect?Funny thing is - when a third world genius wanna defect -- like during the Cold war -- we welcome them --- why? Because of HONOR and PRESTIGE but if it's a gardener from Mexico- we are NOT as welcoming... but who cleans our lawn?
So, yes I want America's edge back but I want a WHOLESOME and HEALTHY kind of Edge NOT just for prestige I want the whole complete package! While I am hoping against hope so to speak --- I want a Holy America!
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