Automobile Bailouts Explained

General Motors, Ford and Chrysler are seeking $50 billion dollars in loans from the government to keep operations going. This is on top of a $25 billion dollar loan that was already snuck through during the bailout fiasco.

Bush, I believe turned down $10 billion more in loans earlier this week. I would not expect Obama, once in augurated, to be so frugal with tax dollars.

So I'll explain the bailout quickly for you.

Since you would not willingly purchase a $40,000 car that you did not like, government will force you to give ~$200 to each of these companies.

Why? Because they can. Did you really need a good reason for it?

Bailouts encourage poor management practices. Chrysler was bailed out years ago and here they are begging for money again. If Chrysler had been allowed to fail last time and bought up by another company maybe it wouldn't be begging for money again.

As with the financial bailout, I'm totally against tax dollars going to prop up failing private businesses. Once you start; its impossible to say no. We are already facing a $550 billion deficit next year - some estimates have it upwards of $1 trillion.

Given that Obama will never cut spending and only - as he said - "looks at the revenue side of things" taxes will, inevitably go up. CA is talking about a $4.4 billion tax hike. NY is canceling rebate checks and thinking about taxing incomes at a higher rate. The trend is already here. In a down economy, raising taxes is the worst thing to do. But here we are. Why?

• Because Ford can't make a car that people want to buy - and it's your fault.
• Because mortgage giants can't make good loans - and it's your fault.
• Government writes policies that make these bad loans possible - and it's your fault.

And you wonder why fiscal conservatives remind you that the government is the devil. Because it is.