Chicken Little

From the wires today comes this excerpt:

House Speaker Nancy Pelosi said she wants “immediate action” to give automakers additional aid as shares of General Motors Corp. hit their lowest level since 1943. The failure of “one or more of the major American automobile manufacturers” would have a “devastating impact on our economy”…

Why would this be devastating?

What’s going to be devastating is if we keep people with extinct skills in government subsidized jobs to produce a product that the market doesn’t want. That is what will be devastating.

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3 thoughts on “Chicken Little

  1. It is quite unbelievable that we have gotten so far away from free markets in this country over the last couple of decades. In a true free market, one party gives something in order to get something back. But, as we have seen, many on Wall Street and corporate America have expected to get much back (lots of money) without having to give something up (risk).

    Risk is at the very heart of a capitalist society, because a capitalist society is based on the idea of an exchange. What we are seeing right now is really incredible. I think we’re seeing nothing less than the breakdown of the crony political/capitalist order in this country.

    And, no, I’m not a radical. I’m a free market advocate. The trouble is that we haven’t had free markets. We’ve had endless asymmetrical intervention in the ludicrous attempt to keep the good times rollin’ forever and ever. Over the last 20 years, Congress has come to believe that there is such a thing as a free lunch, that debts don’t have to be paid, that something as complex as an economy can be controlled – much less managed – and that allowing the creative destruction of capitalism to take place would be somehow devastating.

    Now we’re seeing the devastation. This constant meddling has left the global economy on the precipice of a collapse. With it may come the upheaval of our political system (and I can only hope that the country wakes up, throws out all of the bums in Congress and elects some competent people who actually give a crap about serving those whom they represent).

    But Congress has its constituents and, more importantly, the lobbyists who fill its campaign coffers. Unfortunately, I think that things will need to get just downright awful before the country wises up and realizes that it has been fleeced. All of these clowns, from Bernanke to Paulson to Congress, who are desperately trying to avoid a depression are going to cause just that because they’re foolish, corrupt and morally bankrupt.

    As was said in the movie, “Welcome to the Suck.”

  2. When would our government finally realize that our auto industry just can’t compete with foreign auto makers? I mean, come onnnnnnn!. Stop this protectionism nonsense; throwing money way. Just let them fail. Maybe it is time for them to fail. How long can we continue this?

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