November 17, 2008 - PPM - Capitalism Killers

This week’s PET PEEVE MONDAY (PPM) is the DEATH OF CAPITALISM.

Capitalism is defined as an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations.

Nowhere in the definition do I see the words, “government intervention” or "bail-out”.

Our country was founded on ideals of capitalism. It has survived civil wars, world wars, urban strife, terrorism, and the avalanche of TV reality shows, but somehow cyclical stock market corrections have made the US Government put capitalism on the endangered species list.

When any government steps into to take over a company or industry they NATIONALIZE it.

The US Treasury did not step in when the technology and telecom bubbles burst earlier this decade. When Enron, WorldCom, and companies of their ilk went down, the CEOs went to jail. The senior management of failed organizations paid the price for their incompetence and illegal activities. Today, irresponsible CEOs are rewarded with golden parachutes or infusions of government funds.

Why bail out one industry or company, yet leave others to fail? If we bailout Wallstreet then why not Main Street in Wilmington, OH? Either way, thousands of workers could lose jobs, benefits, pensions, and value to their 401K plans.

It’s like our capitalist government has become the Bailout Nationalizer (Soup Nazi from Seinfeld), NO BAILOUT FOR YOU!!!

(BTW – with apologies to Karl Marx and Benito Mussolini purists, I know I may have mixed metaphors between socialism and socialism.)

The brain (dis)trust in Washington has decided to bail out one large insurer and certain banks and brokers. Now they are looking at US car manufacturers. Why?

Detroit’s big three losses can be attributed to years of poor marketing, a lack of innovation, labor union excesses, and visionless management.

Teddy Roosevelt did not bail out the buggy whip industry when the automobile was introduced in the early 1900’s. Gas Guzzling SUVs have gone the way of the typewriter, carbon paper, and zeppelins. It’s just someone forgot to tell Detroit.

The American Auto Makers should go into bankruptcy protection and reorganize. They can rid themselves of dreadful management, costly labor agreements, and unproductive infrastructure. A bailout only puts a band-aid where they should amputate.

These onerous bailout actions will forever change our way of government and cause irreparable harm for generations to come.

The 535 representatives in Washington should take a civics course before they KILL CAPITALISM.