Thursday, September 18, 2008

It It's Free, Why Do Taxpayers Have to Foot the Bill?

Free enterprise, free market is defined as : 
Business governed by the laws of supply and demand, not restrained by government interference, regulation or subsidy.
http://www.investorwords.com/2085/free_enterprise.html

Free market economics is closely associated with laissez-faire economic philosophy, which advocates approximating this condition in the real world by mostly confining government intervention in economic matters to regulating against force and fraud among market participants. Hence, with government force limited to a defensive role, government itself does not initiate force in the marketplace beyond levying taxes in order to fund the maintenance of the free marketplace. Some free market advocates oppose taxation as well, claiming that the market is better at providing all valuable services of which defense and law are no exception, and that such services can be provided without direct taxation. Anarcho-capitalists, for example, would substitute arbitration agencies and private defense agencies.
http://en.wikipedia.org/wiki/Free_market



NPR had this headline on All Things Considered, March 25, 2008
Does Bear Stearns Bailout Set a Bad Precedent?
by Russell Roberts
http://www.npr.org/templates/story/story.php?storyId=89064840

Then the Federal Reserve bails out Freddie and Fannie.  Now AIG.  What next?

If the definition of the free market includes "without the regulation of government", the why do they need government to bail them out?  Remember, government has no money except what we pay in taxes.

The CEOs and top management have been raking dough into their pockets faster than rabbits reproduce.  They have received millions of dollars in the form of salaries and bonuses for "doing a good job".  And the "golden parachute packages" they have contracts for, some of which are for millions more dollars per year, are totally stupid for us the taxpayers to pay.  If you do such a lousy job, we have to bail you out, then no compensation should be paid and you should be forced to return some of the money back.  If I do a lousy job and really mess things up, I will be fired and no "golden parachute" for me, like most workers. 
The CEOs and top management rake in the dough while you and I pay for it.

We need to change the definition of "free market" to be without government bail out.  If they fail, they fail.  Just like me.



So here I am "STUCK IN THE MIDDLE WITH YOU".

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