Wednesday, November 12, 2008

The Bailout Widens

I was chastened recently about the government policies in the current financial crisis not being truly "socialist." A fresh reminder....

From the Encyclopedia Britannica:

[Socialism is a] social and economic doctrine that calls for public rather than private ownership or control of property and natural resources. According to the socialist view, individuals do not live or work in isolation but live in cooperation with one another. Furthermore, everything that people produce is in some sense a social product, and everyone who contributes to the production of a good is entitled to a share in it. Society as a whole, therefore, should own or at least control property for the benefit of all its members. (Emphasis mine)

Now the Treasury Secretary has released a PDF for businesses looking for a piece of the $700 billion bailout action. The $700B is going toward purchasing troubled assets. Translation: it's a form for people requesting government ownership of their assets.

President-Elect Obama's party is pushing for the federal government to buy "equity stakes" in The Big Three automakers. Translation: government ownership.

American Express (my latest credit card provider, thank you very much) just had its shares drop 10 percent because word got out that they were seeking $3.5 billion in funds under the government's plan to directly invest in financial firms. Translation: they're asking for partial government ownership.

This ain't over.


I've got a serious question: why is it that people inside and outside the media are so willing to think the worst of private individuals with money, but are perfectly willing to trust government--which is a collection of individuals no different from you or me except that they can use the law to enforce their wishes--to use money wisely?

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