Over the weekend, Russia, yes Russia, laid out its argument that America has officially killed capitalism. The record speed that the Obama administration is moving away from capitalism can be seen as they gobble up car companies, insurance providers and financial institutions.
Throwing out existing board members and replacing them with unelected government workers will complete America’s uncapitalistic transformation. Nothing is sacrosanct in the United States. Contracts have been broken, monies withheld and new regulation passed in order to create the higher good.
We are now saving the economy, car companies, insurance firms, financial institutions and let’s not forget the planet. Washington D.C. is adding trillions of dollars to our debt. How much money is that? Even the president contends it’s too much. “We’re broke,” he said in a recent CSPAN interview.
Really, broke? Even though the White House acknowledges we have no money, no way to get it back, they continue the spending dash. I don’t know what it will take for every American to scream, STOP!
Government officials announced that these companies were too big to fail. The question we should be asking them is, ‘Are we (the U.S.) too big to fail? The old saying goes something like ‘Those who don’t learn from history are doomed to repeat it.’ Have we learned anything yet?
Let’s take the newest taxpayer pet project – General Motors. President Obama stated that he did not want to be in the car business, yet he is. Obama’s economic team is set to name all but two of the new GM board members and invest an additional $30 billion on top of the $20 billion it has already sunk into the ailing company. This sounds a lot like ownership to me.
Today GM filed Chapter 11 bankruptcy and by doing so has completely wiped out the common shareholders stock. It will now be worth nothing.
Close to 40 years ago the government took over Amtrak to save it from failing. The government is still an owner. The governments’ problem with Amtrak remains its inability to control labor costs with the unions.
In the past, Amtrak was run by bureaucrats with no transit experience. Fast forward to today. The collective automobile industry experience for the new White House auto task force is – zero.
Amtrak continued to bilk the federal government for more than $30 billion and it is still taking money. In 1970, congress approved a bailout package of $340 million, telling taxpayers they would be out in five years.
In a statement from House Minority leader John Boehner, “Does anyone really believe that politicians and bureaucrats in Washington can successfully steer a multinational corporation to economic viability.”
Last year Amtrak took in $2.45 billion in revenue, however it spent more than $3.38 billion. Washington D.C. filled in the roughly $1 billion shortfall with taxpayer money.
When will the White House walk from the $50 billion it has now invested into GM’s bankruptcy deal? When is a company too big to fail?
Or is the bigger question when does America fail?