Bailouts

Most of our lawmakers have come to the belief that every problem has a government solution. But common sense tells us that most problems are best handled without government intrusion. Case in point – the bailouts.

Several companies made very poor business decisions and were nearing bankruptcy. Unfortunately DC decided to take your money and give it to those failing companies. DC forced us all to bail out those companies because they were "too big to fail." But this just allowed those companies to ignore the core problems that caused their failure.

Had DC not bailed out those businesses the situation would have self corrected. The bankrupt business would have liquidated their assets. Solvent companies that had made good business decisions would have bought those assets. Then those successful companies would have then hired more employees to handle their increased markets and production. Employees from the bankrupt companies would have been hired by the successful companies. People would still be employed, the government would have no basis upon which to take over private sector activities, and the citizens wouldn’t be in debt to foreign governments for having bailed out poorly the managed companies.

For free markets to work, they must include failure as a necessary self correcting mechanism. When we prevent the free market from self-correcting, the resulting disaster is not due to a failure of the "free market system," it is a result of unnatural interference in that system. This is common sense.

Stay updated on the campaign - Join our Mailing List!