So the bailout passed. The Senate and the House–you know CONGRESS–got together again and decided that they should help the American people out. Which is good considering the American people are the ones who put them in office. Of course, their idea of helping the American people out is to give tons and tons of cash to businesses that have failed to regulate themselves like they said they would, and will most likely continue to practice toxic and harmful business techniques unless something is done. Seriously, what good does it do to give these struggling corporate giants all this money when there is no guarantee that they will get their acts together and starting being responsible.
The bailout will allow the government to purchase bad mortgages, thereby helping bad lenders out. This, in turn, will allow banks and other conglomerates to lend more money to each other. How does this help? It puts more money into the system, sure, but at what cost? Isn’t excessive borrowing, and bad borrowing one of the reasons we are in this mess in the first place? All the Congress seemed to do with this bill was ensure the continuation of the practices that got us here. Oh sure, there were lines about regulation in the legislation, and there were some nice tax breaks–some of them even for the middle and lower class–but this seems more like a band-aid to the problem rather than an actual way to fix things.
And what about State budgets? Right now California is asking for 7 million dollars from the Federal government, threatening that the State will go bankrupt if it does not receive assistance. Oh My God! In 2007, California was cited as the 10th largest economy in THE WORLD by the CIA World Factbook. Let that sink in a moment. One year ago, this state in the United States of America, was the 10th largest economy in the world, and now it is facing bankruptcy. Maybe Schwarzenegger does deserve to be impeached. For those who doubt that we are in a crisis, I say open your eyes. If this can happen to California (and I wonder what the new bailout bill will do to address hard economic times in terms of the State level) the rest of us are in trouble.
Now that the bailout has been passed and ratified by President Bush, we have to wait and see what happens. Will this bill and money really help us. Will it save businesses and jobs (I’m talking the small businesses, not the large ones that caused this mess in the first place), or will it just encourage more irresponsibility? After all, they have a lot of money to work with now, and still no real clear talk or language on regulation. So we wait, with baited breath, and hope that this one time, when our government had a chance to really do something for us, the average American, that it put its interests to the side, and made a meaningful decisions.
As an aside, I think it’s funny that a lot of the people asking for the bailout are the same ones who are against social reforms. They believe in the free market and want it to fix itself, and there is the argument that this bailout blurs the line of socialism and capitalism so much that we may as well start wearing red and speaking Russian. And yet, they are the first ones to ask for help from the government when things go bad. Where is their free market now? And to be fair, this isn’t socialism because it really is only helping the top one or two percent; the rest of us are still languishing in the wind, wondering where our next meal will come from, or if we will still have a roof over our heads next month. If this were truly a socialistic step then the PEOPLE would have gotten the cash, screw Wall Street.
Of course that did not happen (nor would it ever, I mean screw the idea of actually helping out the everyday person–just talk a lot about it because it’s popular), and now we wait to see how bad the recession will get before it starts to get better.