“Investments”
If I had wanted to invest in AIG, I would have. I really resent that my government is forcing me, as a taxpayer, to invest in an organization I don’t believe is worthy of my investment. I could say the same about many other organizations clamoring for government dollars.
I understand there are many fine people employed by these companies. I’m angry that their leadership’s poor management and, in many cases, their “I’m going to take this company for all I can get” philosophy has been a significant contributor to this current economic situation. I’m heartbroken that good, honest, hard-working employees who have toiled for the good of the company are caught in this crisis. But in a free enterprise system, companies who do not practice sound leadership and management need to go by the wayside.
If they do request and receive a handout or assistance to get them through the crisis, they should not be surprised at oversight that gets into nitpicking how they are doing things. What many people (and, by extension) companies don’t realize is that when you ask for a handout, that opens you up to criticism and feedback (unsolicited or otherwise) about the choices you (or the company) has made.
When you’re responsible for your company and accept it’s failures and work through them, how you structure your executive compensation is your business. If you go out of business because your executives spent all their time drinking mimosas on the beach instead of actually leading the company, that’s your problem. If you wind up in a financial crisis and the people you ask to bail you out say, “Sure,” and subsequently discover your leadership team has been spending an awful lot of time drinking mimosas on the beach and flying around in executive jets, they might have something to say about it. Since you’ve asked for and accepted their help, you don’t really have a leg to stand on when they suggest, no insist, that that behavior isn’t appropriate when trying to achieve fiscal prosperity.
I see a similar thing on a smaller scale with some individuals. Their personal conduct results in situations where they are not in a position to fend for themselves effectively. They need assistance from other people — maybe with transportation, groceries, work, or babysitting. Yet they fail to understand that the other people do not have to cater to them. The person seeking help or assistance needs to adjust their requests to accommodate the person or people they are calling upon to help them. When they don’t do so, resistance to helping increases upon the part of the people being called upon to assist.
In personal lives as in business, when you’ve screwed up and are trying to straighten things out, it’s best to come calling with a healthy dose of humility and a viable plan to eliminate the screwed up situation. And don’t be surprised if you’ve worn out your welcome by calling at the well too often — especially if your plan was just lip service to get you way. AIG, this is beginning to look like one of those “too often at the well” situations. It will, eventually, come up dry.
It bothers me a lot, these bailouts. While I understand that not doing so would likely result in lots of people losing their jobs – and contribute to the cascade of no jobs -> no money to spend on whatever (from rent to utilities to McBurgers) -> more layoffs -> round and round we go – I just don’t think it’s right that the Federal Gov’t gets in the mess, spends absurdly huge amounts of money, and just adds more fuel to the problem instead of letting it burn itself out. How does incurring MORE debt get us on more stable financial ground?? And who’s gonna pay for it? The few people left who’ll still have jobs. And their children.
If a business goes under due to faulty business practices, planning, or decreased market share – or whatever – then they need to go down. I think it’ll be far, far better for everyone if we let the financial wounds open to the air and leave them alone to heal or die, than to keep putting on and ripping off bandages, then poking the scab only to slap on another bandage which we then rip off again… All we’re doing is making sure the problem continues. It’s not going to get better, and it’s not gonna fade away and die. It’s just gonna keep oozing and oozing and oozing.
As a nation, we need to stop throwing money at problems. It’s what got us in this mess in the first place.
Amen. As far as I know, economics is economics. There aren’t different kinds for personal and federal. I tried and tried to spend myself out of debt, and it didn’t work. Why do the Feds think it will work for them? I’ve already apologized to my kids for the massive debt we’ll be leaving to them and to their grandchildren.
I totally agree with both of you. The other thing that scares me is: once the government gets in, will it ever get out? I suspect not. Then we’re saddled with another bad investment that never goes away. Just what we need.
Oh, and by “we” I mean the people of the world. Like it or not, we’re living in a true global economy, and our debts and bad fiscal policies reverberate around the world with the speed and force of another Krakatoa.
Good point, Carter. We still have New Deal programs hanging around. I don’t know if FDR intended for those to be with us into perpetuity, but they are. So my guess would be, no; once the government gets its foot in the door, it’s there for good and sooner or later will kick you out of the master bedroom.