Sunday, December 18, 2011

Too Big To Fail

There are corporations and financial institutions that have become so large that if they were to fail the ruinous effect on the American economy will lead to the fall of the world sole super power. Banks are not the only corporations that are too big to fail but so to are the Big three Auto makers and the Nations utility companies. Yet as we all have become too aware the Obama industry has done nothing to stop the too big to fail phenomenon. Rather than break up the big banks, Obama decided to regulate them more. Once the lawyers and accountants figure out how to get around the regulation (and believe me they will), then our institutions that are too big to fail will again run wild knowing that even if they risk everything the government will bail them out because of the drain a failure will cause on the economy. This leads me to believe that our government has become to big to fix what ails America.

This recession is not cyclical in nature but rather structural in nature. We have bled jobs from our industrial base for years. We are more efficient at providing services than we are at producing goods. The disparity between the rich and the poor is not due to less taxes being paid by the rich but rather because the only place to make that kind of money requires high tech services. Financial, Health, accounting, and the law. Building products is far cheaper overseas. The masses in the middle have been squeezed out. Unions have made it impossible to compete. In this light we can see that only the educated and elite will be enabled to make a living. The unskilled labor force will continue providing service industry products that the top of the pyramid will refuse to use. See the rich are not going to the fast food industry, therefore the money will never be made in those companies. Until we break up the monopolies and allow the free market forces control who makes it and who fails we are doomed to follow a decline in America. Our entire system will continue to decline until there is more competition and less government interference.

Our government is too big to be of any assistance. Everything our government is focused on right now is meant to keep the poor poor. Providing handouts is not the answer. Sure it appears that the American left has a heart, has compassion, but that is only for so long as the poor stay poor and keep there head just above water. Government handouts make lazy people lazier. Make unemployed people even more unemployable. Make the governed even more dependent on government. So while it is true that some of our corporations are too big to fail our government has become too big to fix the structural problems we face which will make our government too big to save.

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