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  • The Bailout Mentality Ends Here

    It’s bad enough that there are already legions of lobbyists lining up in Washington for their slice of the upcoming $700 billion-plus pie. But when our nation’s local government leaders join the bailout parade, you know our nation’s sense of personal responsibility has significantly deteriorated. Earlier this week the U.S. Conference of Mayors gave their $90 billion wish list to Congress and now Democratic governors are meeting with President-elect Barack Obama to press for their own $500 billion payoff.

    Fortunately there are still some leaders that understand the damage this self-perpetuating bailout parade is causing the nation. Govs. Rick Perry (R-TX) and Mark Sanford (R-SC) write in today’s Wall Street Journal:

    As governors and citizens, we’ve grown increasingly concerned over the past weeks as Washington has thrown bailout after bailout at the national economy with little to show for it.

    In the process, the federal government is not only burying future generations under mountains of debt. It is also taking our country in a very dangerous direction — toward a “bailout mentality” where we look to government rather than ourselves for solutions. We’re asking other governors from both sides of the political aisle to join with us in opposing further federal bailout intervention…
    ..
    In a free-market system, competition and one’s own personal stake motivate people to do their best. In this process, the winners create wealth, jobs and new investment, while others go back to the drawing board better prepared to try again.

    To an unprecedented degree, government is currently picking winners and losers in the private marketplace, and throwing good money after bad. A prudent investor takes money from low-yield investments and puts them in those that yield better returns. Recent government intervention is doing the opposite — taking capital generated from productive activities and throwing it at enterprises that in many cases need to reorganize their business model.

    In Texas and South Carolina, we’ve focused on improving “soil conditions” for businesses by cutting taxes, reforming our legal system and our workers’ compensation system. We’d humbly suggest that Congress take a page from those playbooks by focusing on targeted tax relief paid for by cutting spending, not by borrowing.

    In the rush to do “something” to help, federal leaders would be wise to take a line from the Hippocratic Oath, and pledge to do no (more) harm to our country’s finances. We can weather this storm if we commit to fiscal prudence and hold true to the values of individual freedom and responsibility that made our nation great.

    Posted in Economics [slideshow_deploy]

    5 Responses to The Bailout Mentality Ends Here

    1. Barb -mn says:

      Mr. Perry, Mr. Sanford, way to tell them like it is.

      Thank you.

      STOP ALL BAILOUTS NOW!

      Less hundreds of trillions of dollars, why not give each person over 18 years of age, American born and foreign born LEGAL Americans 1 million dollars? All Unpaid bills can be taken off the top. People can invest in their own healthcare, education, housing. 3/4 of the government could be eliminated. Individual Freedom and immediate economic growth will ensue. It will eliminate business closings. It will help the irresponsible people responsible and responsible people rewarded. It would improve the economy overnight. People will want to start their own businesses…less all the governments handouts of our money and impractical irresponsibly. Put money where it works best. Give the money back to the people as it belongs with the people.

    2. Dennis Aderholt, Soc says:

      People in this country are to dependent on the government. They have grown to believe the government will save them from all ills and troubles. This country was built by people that worked amnd belived they held their destiny in their own hands. They saw a need and filled it. The American people, and I use the term lightly, now wait for their hand out each month, they do not rely on their ability to make things better for themselves. I have haerd so many say "the govermnent" needs to do something. We are supposed to be the "government", but have given up that cause to others that are taking us down the path of destruction. Every thing must be "politically correct" for fear that someone will be offended. I believe in trying to get along, but at the same time do we give up what made thius country great. We were a country that accepted all, and those that came worked to become a part of this country. It seems now that each group must have their special ways excepted by this country, not being a part of but acting as an invidual that is not wanting to become a productive part of society. Each group wants to take from, not contribute.

    3. Tom McKinney of Dunw says:

      Thanks for the above comments. We still have some good citizens who believe in personal responsibility. The federal government cannot manage money! Look at the Trust Fund of civilian federal employees. Kindest regards, Tom

    4. David Z says:

      The goverment needs to get out of my gun cabinet, get their hands off of my wallet and get out of the way.

    5. Evan from Anchorag says:

      I think one governor said it best yesterday. "you can't fix a debt problem with more debt."

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