Estimated reading time: 2 minute(s)
As you are well aware, I do not frequently comment on things in the political realm here. Mostly because it either seems irrelevant to me, or too annoying to talk about anyway. (Or, too volatile to post thoughts here… why are some people so tied to their political thoughts/beliefs/affiliations??)
But today I saw the first “bailout” news I really felt I could applaud.
I’m sure you are well aware of all the government efforts to “bailout” various private institutions. Banks, mortgage lenders, other creditors, and most recently, the auto industry. Chrysler announced cut backs, extended layoffs, and various things indicating they are in serious trouble. The thought behind these bailouts is that if these giant foundational pieces of our economy were to “go under” then our entire economy would collapse. And, that would be bad.
But not entirely.
When poor choices are made, the consequences of those choices are bad, painful, difficult, hurtful, etc. What the government is doing is trying to avoid the natural consequences of these poor decisions. But the problem is, they are just borrowing more money (in the trillions) to “bailout” these large industries. Who is going to bail them out? Who is going to bail us out??
Who is going to pay this debt, and how?
So, when I saw this headline (thanks to a Twitter post by Scott) I felt good about one company in America. I was proud to see Ford state publicly that they do not want/need the government’s short-term financial assistance. Their plan is to restructure their business and make wise choices to keep going – without a hand out from the federal government. And I applaud them.
I don’t think it would be a bad thing if these institutions were allowed to suffer the consequences of their spending choices. All will balance out. Someone new will rise to the occasion. Jobs will be found. The economy will get over the bump in the road. It may be a big bump, but it might be a deserved bump. Dumping more money (that doesn’t really exist) into the problem will only exacerbate the problem.
So, I applaud Ford, and though my loyalty has been to General Motors, thanks to my Dad’s working for them for 31 years, I admit to adding a big star next to their name on my imaginary star chart on my wall. They are now (if they stick to this) one of my favorite American companies.
Maybe one day the government will stop meddling in private sector business… but I’m not thinking it will stop for at least the next four years. Hopefully more of the private sector will say, “No thanks.”