It seems these days that everyone is on the Government bailout bandwagon. Not just in the United States, but all over the world, people are crying out to their governments to bailout failing companies. What’s worse is, it’s happening.
I question these people who say that a government bailout is the only way a troubled economy will right itself. I question why these people think that the government will be able to effectively run the nations largest banks, insurance companies and automakers. What has the government ever done that was efficient, or well run?
The perception that the government is the cure-all solution for our economy, goes back to the “woe is me” philosophy that is plaguing society. “I can’t get a job…government please support me”, “I can’t get a loan…government please fund me”, “A hurricane wiped out my neighborhood…government give me a place to live”, “I can’t keep my company afloat…government please bail me out”. These situations all have one thing in common. Someone is taking taxpayer money while doing literally nothing to earn it.
Businesses and their executives are being barraged by negative media to look inept. Government is being viewed as the knight in shining armor, who will slay the evil “Wall Street Dragon”.
Companies who take government bailout funds (and individuals who take handouts for that matter) are only placing a band-aid over a severed limb. It gives the appearance of trying to stop the bleeding, but without serious attention, the patient is going to bleed out.
The companies who are going to come out on top of this whole mess are the ones who anticipate where the shortfalls in the economy will be, and adjust their business strategies to take full advantage.
The companies who are going to fail are the ones who think that they can get by with a band-aid to weather the storm.