Folksinger Tom Paxton wrote this song to ridicule the $1.5 billion Bailout of Chrysler in 1979. Its “success” led to the $132 billion Savings and Loan Bailouts of 1989. That led to the Trillion Dollar bailout of banks, Wall Street, and General Motors in 2008. The set the precedent for last week’s $2 Trillion bailout. Each of the previous bailouts was said to be needed because so many businesses and individuals had either lost money on risky investments or were heavily in debt and had no savings to cope with emergencies. At one time, every American was expected to save and prepare him or herself and business for bad times, and families, churches, charities, and fraternal groups helped those in need.
These are my personal thoughts. Normally, I don’t post anything on this page without first discussing it at one of our 9:30 AM weekly Saturday breakfasts at the Shore Diner. Since I can’t do that for a while, I am posting my personal first impressions and I invite your ideas online. Please post them our @LandP1776 Twitter, @ LibertyAndProsperity Facebook PAGE (not Group), or LibertyAndProsperity.com web pages. Or email me at firstname.lastname@example.org Also, please respond to what others are posting. Thanks!
In my personal opinion (I am NOT speaking for the group, because we have not had a chance to meet), if Trump opposed bailouts, Democrats in the House of Representatives would have pushed through much bigger and more dangerous package. Then, with the help of the media, Democrats would convince most Americans that President Trump and Republicans were heartless and ineffective during the crisis, and Democrats would win total control of the Federal government in November. Here’s why.
Most Americans today have little or no knowledge of our Constitution, or how the federal government is supposed to work. Most Americans under age 40 were indoctrinated with hate-America fake-history and socialist propaganda found in textbooks like “American Democracy Now” by Montclair State College professor (and Democrat candidate for Congress) Brigid Harrison. Many more Americans believe the hate-America socialist propaganda in “mainsteam” network “news” and daily newspapers. Much of this propaganda has been imbedded in our most popular Hollywood movies and TV entertainment since the late 1960’s.
Most members of Congress share these views. The “Congressional Progressive Caucus” has roughly 97 Democratic Senators and House Member who openly support its radical, hate-America socialist agenda. Most Republicans in Congress call themselves “moderates”, “progressives”, or “compassionate conservatives”, By calling himself a “compassionate conservative”, former Republican President George W. Bush implied that conservatives who understand. respect, and support our Constitution, and America’s founding principles of limited government and unalienable rights are not compassionate.
Most Americans, and members of Congress believe the fake history that “unfettered capitalism” caused the Great Depression, and that Roosevelt’s “New Deal” ended it. The truth is that the Democrat “New Deal” turned a severe, but normal three year business cycle downturn into the 12 year “Great Depression”!
Finally, for many reasons, most American families and businesses today are heavily in debt and have no savings. Years ago, most businesses and families planned ahead and saved so they could be financially independent even during hard times. Those in need got help from relatives, churches, charities, or fraternal groups. Today, most Americans are totally dependent on government during hard times. This is not sustainable. At some point, we need a national conversation on how to make Americans financially independent again. However, now in the middle of a crisis is not the time.
That is why I believe that President Trump and Republicans had not choice but to propose these bailouts. And they had no choice but to stuff it with enough pork to buy the votes of Democrats.
What should we do? Should we feel guilty and not cash our $1,200 “stimulus” checks? We shouldn’t. Each person getting a $1,200 check will probably pay more than $10,000 for it.
The federal government is broke. This year, it spent $4.7 trillion, while collecting only $3.6 trillion in tariffs, income and business taxes. It is now $23 trillion in debt. Or $23,251,562,887,364 to be precise.
The Federal Government must either borrow the Two Trillion Dollars or just print it. This comes to about $6,250 for every man, woman, and child in America, or about $15,000 per household. Each of us will pay that debt one way or another. Either we will pay in higher taxes, or in higher prices charged by businesses that pay those taxes. Or we will pay by having every dollar we earned or have saved worth less ad buying less.
This money will be paid back one way or another. Either it will be paid back through years of higher taxes. Or it will be paid back by having every dollar we earn and save be worth less and buy less.
So what can we do?
Here are some of my random thoughts. Please share yours.
- Let’s look at the $2 Trillion Bailout as a tourniquet. A tourniquet stops massive bleeding from a severe wound in an arm or leg. However, the wound must be closed and the tourniquet removed quickly. Otherwise, tissue dies, gangrene sets in and the arm or leg must be amputated. We must work to quickly stop the spread of #corunavirus. We must quickly imitate the success of countries like Taiwan, Hong Kong, and South Korea. Once we stop the virus and get people back to work, we must demand an immediate end to the bailouts.
- Demand that President Trump freeze all unused bailout money when we are back to work, and return it to the Treasury. Then demand that Congress agree to it.
- Understand and teach the true history of the New Deal and bailouts. The “New Deal” of Roosevelt Democrats in 1933 was a a mistake that made things worse. So were the Chrysler, Savings and Loan, Wall Street and General Motors bailouts. Start by reading some books or essays by Amity Shlaes like Coolidge, Great Society, or The Forgotten Man. Or watch some of her videos like this “Uncommon Knowledge” interview on The Great Depresson.
The 2008-2009 General Motors and Wall Street bailouts did not save our economy. They did was reward reckless behavior and poor management and gave us much of our current $23 trillion federal government debt.
4. Understand and teach that “temporary” bailouts quickly become permanent socialism, and that socialism ruins everything it touches. Socialism allows politicians give some people what they “need” by taking from others who have “more than enough”, while grabbing money and power for themselves and their friends. This always causes resentment, anger, waste, fraud, and corruption. Nobody in Washington, D.C. can possibly know what each of 230 million Americans “needs” from somebody else. Nobody can possibly know or decide if somebody else has “more than enough”. Some will get too much. Some will get too little. Some who get enough will think they “need” more. Some will be be angry that others are getting more. Some will lie or cheat. Some will get comfortable living off of others, and have no reason to study and work to earn more. Some who resent working to pay for those who don’t will stop working or work less to qualify for benefits. Some will be reckless and stop saving or buying insurance if they know the government will bail them out in bad times. All of this goes against what made America great — the idea that each of us is responsible for improving our own lives, and the job of government is to equally protect our opportunities and right to do it.
5. Understand and teach that bailouts are not permitted by the U.S. Constitution. Article I, Section 8 of our Constitution gives Congress the power to borrow, tax and spend only for certain specific purposes. Those purposes include regulating trade and travel, coining money, having courts, patent and copyright laws, immigration laws, post offices, roads, and a military. Our Constitution does not allow Congress to take money from some people and give it to others. Of course, our federal government has been doing this anyway since the 1930’s. However, that spending and the taxes and debt to pay for it are not sustainable. Our country was in crisis because of that long before the coronavirus.
When the bleeding stops and the virus is controlled, we must demand that America again become a “land of boundless opportunity”. We must teach Americans to again take responsibility for their own lives, and give them opportunities to succeed and enjoy the fruits of their success. We must again make our government the referee or umpire who makes sure everyone follows the same rules–not another team competing against us.