Posted by
IndyBlogger on Monday, November 24, 2008 12:24:29 PM
What if you were the person or family that has spent within
their means, had a budget, pinched pennies, didn't collect a mountain of debt,
drove an old car, and maybe skipped that vacation you always wanted to take
because you had priorities. You listened Dave Ramsey and you live debt
free. Your reward is higher taxes if you have a job and with other around
you so irresponsible you could be out of work. Hopefully the worst thing
that happens to you is higher taxes, but let’s look at what is happening.
With more bailouts of these companies our government puts more of the
'responsible' people in jeopardy every day. Bail outs lead to more bailouts as people line up to get their ‘fair’
share of the money that’s being handed out. Basically this amounts to looting the US treasury. While we should be focused on saving people’s
jobs these bailouts are still helping rich people maintain their wealth and
avoid the risk they took investing in and managing companies. The companies receiving aid should be
required to go through bankruptcy and all shareholder equity removed from the
companies. This will at least hold the
people accountable that took the risk and managed the companies. The executives looted these companies as
well. They paid up to 100% of salary in
bonuses. Maybe more, but I can’t
document those cases. Now they are out
of cash, of course they are. So the
response is to give them money, tax those people who can pay more. Basically everyone who didn’t take the risk,
and was conservative. Punishment for the
people that didn’t take the risk in the first place.
Today our I heard on Fox that they government plans to make
it so that people will only have to pay a max of 38% of their income toward
their mortgage to keep their house. They
should have never been approved for a loan over 38% of their gross income in
the first place! My father always told
me your mortgage shouldn’t be no more than 1 weeks gross pay. I was more conservative and plan for 1 week’s
take home pay. This is below 25%. It would be like the government to say I
need to now pay 38% of my income towards housing, to make up the difference. In one way they have because while that won’t
be the law, they will get it from me in other ways. I’ll have to pay higher income taxes,
everything will cost more because this policy will create inflation, and new
ways that I haven’t even thought of yet.
In a free market economy we can’t afford to bail out risk
takers. Risks have rewards, and
failures. If we remove the downside more
people will take risks they can’t afford. If we bail out one company we must bail out more. If we say it will be 700 Billion that’s the
least it will cost because people we spend more. They will learn nothing.
If you think I’m wrong, look at the Automakers who flew
private jets to Washington
to make their case for needing money. A
$20,000 flight instead of a $1,000 first class ticket, we aren’t talking coach
here. Meanwhile, I’m still flying coach
so I can pay for the reckless theft. Its
nothing more than theft and they haven’t learned a thing.