BUSINESS HATES SOCIALIST POLICIES AND MICRO-MANAGEMENT BY GOVERMENT SLACKERS

First there was the fear spread by our President advising that there is a CRISIS, in just about every aspect of our economy.

(Photo of government mandated future transportation.)

In fact there was a speech I no longer remember in which I believe that he used that word more than 20 times. Everything was a CRISIS, and he had the answer to that CRISIS, to every matter defined as a CRISIS.

Now keep in mind that everything in our economy was defined as a CRISIS, no matter what it was; bank capital shortages, bad loans, predatory lenders, high oil prices, low oil prices, no inflation, high inflation, high government deficit spending, the falling dollar, growing unemployment, GM rescue, insurance companies writing new policies or paying old ones, new organizing rules for unions, executive pay, Mexico free trade...on and on and on.

Everything was a CRISIS; nice scary talk by our fearless leader.

But, have no fear fellow Americans, there was a one size fit all solution to every conceivable CRISIS. That solution was to spend, spend and spend your children s and grandchildren's future income.

The solution was needed and immediately necessary, it had to be voted on right away, without reading, without further comment-TRUST ME, was the mantra of our fearless leader.

And so, as we all remember, the CONGRESS voted on a massive bill which nobody read.

It is expected that its present total impact will be a minimum of $12. 5 TRILLION over its life. That by the way is the value of the entire output of all the goods and serviced of the USA, in a year.

That is approximately equal to almost the output of all the G20, members ( for instance Russia's total output is $1.5 Trillion).

However, there was catch, a catch that nobody knew about because nobody read the bill. In fact I tried to see it in final form and as much as I tried all I got was certain versions on the Internet, making it difficult to decide which was the final bill.

The final bill, the one that Congress voted for, contained a few surprises that in effect were that the government would now run the businesses that took any money from the government.

Now keep in mind, that our new President, (as described by Joe Scarborough on his morning TV show today) has never had a job at a business, has never had to run a business and deal with the myriad of government meddlers ranging from local zoning to licensing, to all the other matters of daily managing of a business. he never had a paycheck from a real business, never.

Now he was going to tell the most sophisticated financial institution in the world how to run their business. He was going to tell them how to wind down their derivatives, and he fired the CEO of GM on the air, by saying so. The board of directors did not fire him, our President did!

Then, the government advised that GM would be building cars for which technology was not yet invented for, while stopping the realistic expansion of the availability of electricity, and outright stating that electric rates would rise dramatically for all users due to their mandates and initiatives.


The government (make that Barney Frank and Chris Dodd) also proposed what salaries, what bonuses would be paid to recipients of government money, and special taxes of 90% were proposed on bonuses.

Now something is starting to happen. The recipients of the government money, now read the bill-they read the conditions of doing business with the devil , sorry I meant the government.

The recipients want to give back the loans, or pay back the loans early and are being arm twisted to not pay the loans back!

In a free market, business attracts key employees by offering attractive pay, or bonuses or other perks to get the best people. In a new government run business model, such incentives do not exist.

For instance under the government model, a successful business that offers a $1 salary to an employee and unlimited bonus tied to financial performance, is penalized as he will be taxed at crazy confiscatory rates on his bonus.

For instance, the new employee making $1 billion in profits for the employer, and being rewarded with a bonus of 5% of the profit or $50 million, would have to pay 90% in taxes, under the government program of being employed by a recipient of government largess.

On the other hand, the government does not impose such a tax if the employee was paid $50 million in a guaranteed salary, and $1 in bonus!

So working for a government, at a company which has received government funds can be a better deal for a slacker, since his salary is guaranteed. But all the highly motivated employees will work elsewhere.

The government is using a Socialist type of compensation-equal pay for all slackers, as usual, and that is starting to become clear to businesses who want to be free of the government restrictions on how to run a business.

The banks, the companies taking government money are learning the hard way to Not do business with the government as they will be burdened by the usual slow moving and non-motivational policies of a bureaucracy, and will make that business not competitive with others.

As in the case of GM, we saw a failure of the company to exist on its own and causing an even greater and more expense bailout than a pure bankruptcy reorganization would have provided, not to mention that it is now a government run zombie company.

Socialism and free enterprise just do not mix, and the sooner our government gets it, the sooner will we see an economic recovery in the USA.