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Bailouts, Bailouts, and more Bailouts

By Erik Folgate

I could talk for days about these bailouts, but I don’t think you’re interested. We shoud be interested, but I’m just sick of it. Here’s the bottom line: We’re rewarding failure and punishing success. So many Americans want to tax the hell out of rich people and successful corporations, and they want to bail out companies that sowed their failures years ago. The auto industry has been failing for years. It’s not just because the economy is down for a year. They produced CRAP in the eighties and nineties. Toyota and Honda saw an opportunity, produced a quality, reliable product, and they took market share. The auto unions have gotten out of control, and they are sucking the life out of the industry. They have made it impossible for the “Big Three” to compete.

What’s your take? What do you think the long-term effect of all of these bailouts will be?

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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Comments

  • Sam

    The British government bailed out the British Leyland car company in the ’70s and ’80s and look where it got the company. It still went out of business. The government needs to start making these companies accountable for their woefully flawed business practices and stop throwing money away.

  • author

    I totally agree, Sam. It’s sick. Who’s next? The credit card companies? We’re going to start bailing out credit card companies? Every industry will now start coming to the government for help, and we become ONE step closer to socialism every time it happens. No one seems to notice the big picture, and some people actually WANT this country to switch from capitalism to socialism which boggles my mind. oh well.

  • Neko

    I wrote an article on my blog titled ‘% Reasons U.S. Government Bailouts Are A Bad Idea.’

    What you said sums some of it up, we really are rewarding failure and punishing success. Bailouts provide for an unfair playing field. What if company A today is being bailed out while Company B is successful yet in 5 years Company A is successful land Company B fails? Is it fair for Company B because had our free market originally worked the way it should, Company A would have went under and Company B would have succeeded in the long term.

    - Neko

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