American Ingenuity and The Bailout
It now seems clear that the bailout, so aptly forced as a burden on the shoulders of the American taxpayer was simply another means of stretching the power of the bureaucracy that governs our citizens in order to benefit only a few of the many citizens of this great nation. We were told that without this package much could be lost, we now know that with this package much has been lost. LIBOR continues to soar showing the clear unwillingness of banks to lend to each other or assume new risks.
Its time that we as American citizens begin to stand up against what we are told is good for us and look back into history to find the answers to what ails our nation. Many in Washington place blame on the deregulation of the system that took place beginning in the Reagan years. What many often forget is that Reagan in his unpolitical form was a proponent of a monetary system based on a gold standard. I have been told that the Reagan election campaign even made a video advertisement proposing a hard currency which was pulled and never viewed due to concerns over “political suicide”.
Washington continues to use its power to bail out Wall Street yet it is the American people who are suffering. If we are to spend $700 billion taxpayer dollars should not this money go towards saving the small businesses who employ the majority of the US workforce and accept the burden of these newfound taxes. Should not this money upgrade the infrastructure and the quality of life for the average American resulting in more Main Street USA's, upgraded school's and libraries and new high speed energy independent transportation systems?
Wealth is created on Main Street in the form of the production of goods and services which are then marketed to other businesses and consumers as well as the export market. Our nation is far to dependent on financial services as a means of economic prosperity. Had we maintained a large base of manufacturing and ample production then I sincerely doubt a credit crisis would have such a magnified effect on the broader economy. Capital should come from savings, not debt and or credit and its about time we stand up as Americans and tell someone that we demand a sound and balanced currency with interest rates set by market demands and not an independent institution.
Ultimately I believe the American economy will emerge from this crisis but it will not be due to Washington's intervention or moves to “bailout” the banking system. We will emerge because the American people have the heart and determination to re-create the productive methods of wealth creation that set the United States on its original path to prosperity.