Businesses should regulate themselves, not government
By Megan Proffer
The Northern Light
Most everyone has heard of the $700 billion bailout the Federal government is giving companies like AIG, Fannie Mae and Freddie Mac. It is being sold by Ben Bernanke and the White House as a cure-all for our economy.
What they are not talking about is the free market, the corporate responsibility of the previously mentioned companies, and their irrational assumption that the same companies will not act on the same greed-based business principles in the future.
By defining the American market as free, its citizens accept the responsibility of situations such as this that may arise because of a corporation’s greed. A free market is free of government regulation except in instances involving fraud or force.
By giving the companies the estimated $700 billion, the government is teaching them that it is okay to practice risky and greedy business practices as long as they are big enough for their failure to affect the economy. Yes, the economy will be initially affected by the failure, but it will reach equilibrium once again as more trustworthy corporations emerge.
The bottom line is that a corporation is responsible for itself. The government should not have to baby-sit and feed them in order to reach equilibrium. If the government is inclined to offer assistance, it should be given to those losing their homes instead of those corporations possessing limited liability and grossing millions of dollars in salary. Stimulating the American economy is most effectively done by stimulating the average American’s wallet.
Free market led to crisis, bailout will ease tension
By Brianna Dym
The Northern Light
America’s economy has gone a long stretch of good times and economical growth. Now that it is on the brink of stalling and dying out, action must be taken immediately to ensure that long term plans may be made to fix the problem that ails this country.
A $700 billion bailout may not sound pretty, but it is necessary as a short-term solution to keep America’s economy chugging along until a more solid plan is developed.
It may be interfering with the free market at work, but political tampering with the “free market” over the years has condemned America to its current financial. It is impossible to say America has even been operating under a free market these past years with the existence of fiscal policy, an idea that often goes against letting the economy live and let be.
A permanent solution to fixing the economy will take a long time to develop, most likely longer than this wounded economy has. If these financial institutions are allowed to go under, it could very easily result in the stalling of America’s economy, and once that point is hit, it will be much harder for things to get going again.
So the $700 billion is by no means a permanent solution to America’s economical problem, but it is a method of buying time for the real solution to be thought out with care and attention from professionals in the fed and other institutions.