Tuesday, October 28, 2008

At The Federal Trough 

This article points to a phenomenon that will not help companies in the future. Now that the Treasury has $700 billion to loan, more corporations want some of its funds -- auto manufacturers, insurers, banks. The prospect of diverse businesses running to the Federal trough while homeowners struggle with mortgage payments is making citizens cynical. And, it presents a public relations problem. That is, business supports free markets except when it doesn't.

There are good reasons for these companies to want into the loan program. The societal impact of their failure would be wide and deep. On the other hand, failure is part of free markets. Struggling citizens rightly ask if government is going to keep large businesses from falling, then why not me? This kind of thinking leads to ever-larger raids on government money. Where does it end?


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