Ryan ChartrandYesterday, the Dow dropped below 8,000 points. On Tuesday, the executives of the Big Three automobile manufacturers pleaded for a $25 billion “lifeline.” Months ago, the American people were sold the idea of a $700 billion bailout to buy the “toxic loans” that are plaguing the market. In these increasingly challenging economic times, I ask, what happened to responsibility?
This country was founded on equal opportunity, where anyone of any means had the same opportunity to succeed as the next guy if they just had determination and put in the hard work. But that concept is being replaced by a welfare state.
In a welfare state, if you were irresponsible and agree to a loan you can’t afford, you look to the government to bail you out. If you are an irresponsible airline or railroad company, or have a bad year, you practically hold the nation hostage until the federal government assumes your debt. If you are an irresponsible manufacturing company, you fly to Washington D.C. on a private jet and give a song and dance about how tens of thousands of jobs will be lost if you don’t get an emergency lifeline.
I understand why the Big Three have been having business problems. The United States is one of the most restrictive nations on manufacturing industries in terms of federal regulations. We have environmental and safety standards that dramatically raise the cost of business, and a fair trade policy to boot. The United Auto Workers isn’t helping things much either. Massive pension plans and protected wages are just another straw on the camel’s back. I’m not saying that unions are the issue and I’m not saying that we shouldn’t have regulations. But both make American automotive manufactures significantly less competitive in the world market.
I also understand that the automakers are taking advantage of a system that “we the people” allowed to be created.
Think about it this way: If I took a class, worked hard, but somehow barely passed, and then observed friends who complained to the Dean about their grades and got A’s, I too would go to the Dean and complain. It’s the easy way, but it’s not right.
The Big Three should be allowed to fail and restructure. Only then will businesses stay businesses, rather than extensions of the federal government.
This recession is a natural economic event. If we could have consistent economic growth without any loss, everyone would be millionaires. There would be no risk. But we don’t live in a world without risk and the more we try to pad our fall, the more we dig ourselves a deeper hole. Politicians have got to stop protecting their self interests by trying to fix these natural market corrections.
Government also needs to decrease its role in business. Its only involvement should be to protect consumers and labor, it should not be regulating social policy, like zero-emission vehicles.
Yes, businesses will close down or go bankrupt in a recession. Yes, some homeowners face foreclosure. But other businesses and homeowners will take their place. I’m all for charity in this upcoming holiday season, but let’s be generous to those who are truly less fortunate, rather than those who are simply irresponsible!
Ian Nachreiner is an agricultural science senior and a Mustang Daily Columnist.