Comment E-mail Print

Page 2 of 2

Meanwhile, the interveners within the government and Federal Reserve decided -- rightly or wrongly -- that Wall Street was their priority; and fatefully opted for using a bailout approach, which has committed taxpayers to pay, over time, for the funds government has thrown into the proverbial money pit in order to bail out large banks, insurance companies, and other financial institutions.

Regrettably, the senior managers at a number of these firms were paid bonuses at the end of 2008; and -- as if once is not enough - this past weekend we learned that AIG is ready to disburse $165 Million to its top executives.

Interestingly, the public furor that will undoubtedly bubble up over this second round of bonus payouts, plays into the hands of an administration, which is demonstrating a lust for intervention everywhere, and wantonly stokes populist sentiment for still more government regulation and involvement in "free" markets (Irony intended).

While the government has no business telling a private entity how much to pay their employees, or what represents warranted bonuses -- that is a responsibility for management, stockholders and their fiduciary representatives on the board of directors -- those very individuals at AIG failed everyone - except themselves - as did counterparts at several large banks.

Instead of government doling out billions of dollars in bailouts, each of those distressed private firms -- including the Big 3 Automakers - should have the opportunity to reorganize; and, then pursue market viability with oversight by a bankruptcy judge.

And, instead of the government wasting still more billions of dollars creating 'artificial jobs' in public works projects and social support programs, the focus should be to promote -- indeed, inspire - private capital investment in 'value jobs'.

Such 'value jobs' produce things people -- in their role as consumers - actually value, i.e., are willing to buy with their own hard-earned money. This is something that can only be done in the free market, not by bureaucrats and politicians.

In retrospect, almost all economists now agree that the make work programs during the Depression Era were ineffectual as economic stimulus; and, that it took the entry of the United States into World War II to extricate the country from our economic woes.

At this point, perhaps, we can only hope that the misguided actions taken by the Bush and Obama administrations do not have the same - or similar -- deleterious effects as those undertaken during the 20's and 30's by the Hoover and Roosevelt administrations.

Unless, of course, America's Citizens decide to take back their rightful role in our republic; and, begin to vigorously exercise both their God-given rights and their personal freedoms and responsibilities certified in the U.S. Constitution.

Next time in this space, Part III: 'Responsibilities-R-Us'.

---

Richard Olivastro is a professional member of the National Speakers Association, president of Olivastro Communications - an executive leadership development company - and founder of Citizens For Change.

--------------------

Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA.

>> Back -- Page 1 2

Current rating: 5.0 out of 5.0 (5 total votes)