Survival of the Fittest Economics

When the government hands billions of dollars to companies as a loan or else, there are 3 possible outcomes. The first being the most optimistic, government loans money, auto companies use money to push fuel-efficient cars and alternative energy cars, breaking into the next big market for the auto industry. Few people have cars like this and everyone wants them because they will be cleaner and cheaper to fuel and drive, which means booming sales for the industry. This in turn lets the companies pay back the government for the loan and interest, government uses the money to put something back in the country and the initial investment turns into a gain for the country as a whole. Yeah, then money falls from the sky and pigs grow wings… The second possibility basically leads to communism, government gives out this money, then puts it over the companies’ heads and ends up controlling the company for their own uses, and in this failing economy why should they stop at the car industry. The third possibility is that these companies take this money and give their CEOs huge bonuses then all retire and sit on their fortunes, or put the money into the company and don’t change a thing because it is expensive and risky, basically throwing the money into a hole and asking for more in 2 months.

On top of the problems associated with giving money to the auto industry, why shouldn’t every company in America that is failing due to an uncertain economy be putting their hands up saying that they are all the source of America’s jobs, and if the intention is to keep people working, then they need some financial support. And why should any company pay back any of the loan they get? The U.S. government has an enormous deficit thanks to borrowing from other countries that has been and will likely continue to be ignored. The reason why this can be easily ignored is the U.S.’s influence in the world, whether it is military help, economic help, or just by being a large buyer of other countries goods, and the thread of that disappearing is part of what keeps other countries from collecting on what we owe them. Business in America seems to have a similar hold over the government and likewise will most likely let their debt build and build and just ignore it. Let’s bring the country back to capitalism and end the handouts and bailouts. If big SUVs are no longer selling, then the company making them needs to change and find the next big market, or else they are going to use all their money and crumble. This is the consequence that the big car companies have to face at this point and if they don’t find a way to make a lot of money they need to fail. This may seem bad and crippling to our economy, however is it necessary to truly fix the problem our country is currently facing. Once the big companies go out, their products will no longer seem like the only good choice to go with. This will open the door for new companies to dive into the enormous consumer market that is the U.S. They may be small to begin with; however every major corporation starts out that way, then builds up by supplying what the public wants. At this point these companies have gotten so big that they no longer change to the wants and needs of the consumer, but rather tell the consumer what they want and what is the best choice to buy, and are able to just sit and count their money. These American companies that are so desperately trying to old onto that philosophy are and have been getting beat down by foreign cars and its catching up to them now. Forget bailing out stubborn money pits, support never companies willing to do what it takes to give American what it needs to once again be the world power in business and truly be a capitalist nation that rewards hard work and determination.