Steve
Bailouts - Rewards for Bad Business?
by
on 02-23-2009 at 01:32 AM (1168 Views)
I may be mistaken, but don’t we live in a free market society? In that type of society, companies that are managed effectively get rewarded with more business and increased profits. Adversely, companies that are run poorly will ultimately fail unless they change their management scheme to improve their business. I like to think of it as the social Darwinism of economics. But with this latest government bailout, we seem to be rewarding those businesses who have not been managed effectively. In my opinion, these banks who cannot pay their interest payments should be treated the same way as a homeowner who over-extended themselves by purchasing a $250,000 home on a $40,000 income. They should lose their business just like a homeowner would lose their home! There are many well-run businesses out there who would jump at the chance to absorb some of the business of these failed enterprises, and I believe it is their right in a free market society to do so.
What is even more appalling is the notion that some of these grossly overpaid CEOs have golden parachutes, so if their business fails, they can still walk away with millions of dollars. That is absolutely absurd. I equate that to rewarding your child with an increased allowance for failing grades on their report card. Sounds a little counterproductive, doesn’t it? Oh well. What do I know? I’m just a educated human being with a practical outlook on life. There’s no need to listen to me…
Tags:
bailout, business, economy, finance, golden parachutes., stimulus plan
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