It was less than a year ago when Wall Street firms started seeing the first wave of government bailouts. Shortly thereafter the media and “Main Street” started crying about corporate excesses and greed. Those same people, however, are praising the “successes” of Cash For Clunkers; even advocating for a sequel Dollars For Dishwashers.
Why was Clunkers a success when the Wall Street bailouts were a miserable failure? Essentially they amounted to the same thing, the only difference was the recipients of our tax dollars. Where’s the outrage against those who were able to get a discount on their new automobile? Where’s the public disclosure (maybe a bumper sticker to thank the rest of us for their new purchase)?
Now I’m not trying to say that I agree with the Wall Street bailouts, because I don’t. I’m just trying to figure out how it’s OK to bailout one group of people and not another. The dollar amounts are irrelevant – the principle is the same.
After all, wouldn’t it just be easier (and more Constitutional) to simply not tax us as much? Lowering taxes for everyone across the board would not only help the auto industry and big Wall Street firms, it will also help every other industry. If everyone has more money to spend, they will spend it where they see fit. Whether that’s a new car, or a new dishwasher, the money will be spent, and the economy will eventually correct itself.