Whatever happen to capitalism?

The idea that good run, well administraded companies would profit and those companies that aren't well run would learn quickly that in capitalism there is only room for those who make wise decisions. Since when is the job of the government to decide what companies live and what companies should let to die.

All this companies that find themselves in trouble is not because of the smart people that sat on the board making bad decision after bad decision then having the nerves to tell their shareholders that the companies are in good position only to find weeks or sometimes day later that they were lied to and all their holdings are worth nothing. In the meantime all this companies executives are heading to the doors with very nice severance packages after running their companies, their shareholders and the economy to the ground. Is anyone working in the SEC ?

The United States under this present administration has decided to direct this country towards SOCIALISM by giving billions and billions of dollars, that we dont have, leaving taxpayers on the hook for it, while badly run private entities and GSE's line up at the door of the Treasury Department expecting to get bailed out.

What kind of message does this send...seriously think about it? The sense of entitlement of corporations to corporate welfare now has no boundaries and our Government is going to be expected to bail company after company after company if not they are going run the chance of getting sued by those who dont get this type of treatment.

So why bother having private entities anymore? Might as well nationalize every single aspect of our economy right now, if we are not going to let the free market work itself out, and we are going to encourage companies to make bad decision knowing that the government is going to be there to bail them out.

Well it does go a bit deeper if you consider the NAFTA tariff-free imports allowed for seemsless operation for companies wishing to outsource labor costs in their production.

Two very clear problems should be glaringly apparent:
1) It created a higher tax burden on individuals to recoup lost tariff revenue.
2) Jobs lost to outsourcing will decrease ecconomic spending and therefore cause more job loss.

Combine those two points with risky loan practices for the sake of showing business is healthy and Wall St speculators moving to a strong commodity artificially inflating the price due to demand (for invest purchase).

Now after you think about it for a minute, is it any wonder why there is a Global Meltdown section on ATS? Every post of the danger may sound like Chicken Little but can any candidate promote financial responsibility of raising taxes when the said tax dollars are not headed for current debts but to continue to bailout companies.

I can see GM investing too much faith in a project that ultimately fails and needing some help to keep those 10's of thousands employed. But bailing out financial investors (banks) for betting on the wrong horse (stock) when it is their job to research and study the risks of the investment are not excusable in a free market.

I mention GM because they are going to bet heavy on the Chevy Volt and spinoff clones to the different divisions. Great, if it was the less than $20K car they promised. Expectations currently are 2010 for release with a MSRP for over $40K. Not exactly hitting the market that needs the reduced cost of operation in a car. So expect a GM bailout around 2011-2012 depending on how heavy they hedge their bets on the Volt.

[edit on 8-9-2008 by Ahabstar]

reply to post by Bunch

Whatever happen to capitalism?

Unchecked and encouraged by petty idealogy such as pseudopatriotism, as well as greed, it became Ultracapitalism

Then iit evolved into Corporatism

But the Corporatism they tried to hide, and you are being tricked into bitching among yourselves about left vs right, capitalism vs socialism etc etc etc, while the Corporatism continues to fester, and it joins with its counterparts around the world.

The Aim? Global Corporate Fascism

And btw, a little social healthcare etc for the needy doesnt hurt, same way as good honest capitalism doesnt. Balance must be sought. I would suggest perhaps that you need to be a little more.... targeted, with your worries. I would suggest, and please correct me if I am wrong, that what you ACTUALLY are worried about is not Socialism, but rather, Authoritarian Socialism. Caring for your fellow man is not a crime, but enforcing everyone to be the same as directed by the government at expense of liberty is. See the British Government since 1997 for details.