The sub prime mortgage melt down and its ensuing financial “crisis” has tested the mettle of all of us who believe in and support the free market. As Thomas Payne put it, “These are the times that try mens' souls.”
The financial institutions that have manipulated relaxed credit terms to enhance their bottom lines are crying for a massive taxpayer funded bail out. They would have us believe the “economy” is tanking because they are on the verge of bankruptcy. But these firms are not the American economy. They are not the life blood of our prosperity.
These firms are the offspring of a dynamic, massive economy that is made up of manufacturers, restaurants, landscapers, shippers, doctors, union laborers, merit shops, farmers, and countless other industrious enterprises that are built on the foundation that has made America great – our People. And those people, the ones who go to work everyday, build our businesses and consume our goods – have built the most prosperous economy in the history of the world because of free market capitalism.
These failing institutions are born of that economy, they are not the economy. They are equivalent to a switch on a circuit board, or a toll booth on a highway. If they fail, it will cause inconvenience, but they will be replaced. American ingenuity will move to replace these failed mechanisms. New and better institutions will sprout up overnight and at the end of the day they will be more effective and efficient.
The push for a massive bail out is being orchestrated in an environment of panic and emotion mixed with false information. No one should be forced into decision making under these circumstances. As I write this article, the stock market is already recovering from its initial fall, demonstrating that the market place has confidence in America. All the while, screeching pundits call for everyone to get out of the market, and their hysteria is ignored by many Americans who are smart enough to take advantage of the great buys on some of our nation’s best companies.
Bail out proponents are running in circles with their hands in the air crying the sky is falling while the stock market is rising. They say we cannot operate without these firms. That is not the case. Small, well managed banks are thriving, which is testimony to my repeated argument that smaller is better.
Some panic stricken individuals have claimed farmers will not be able to buy fertilizer, insinuating there will be no food. This is utter nonsense. Do you really believe fertilizer manufacturers will leave their product sitting in warehouses?
One ridiculous rumor is that McDonald’s can’t get credit. How absurd is it to think McDonalds, an all cash business that does not carry receivables, cannot fund its payroll? These statements are born of an industry on the edge of a much deserved collapse and history will prove they manipulated public opinion to force a confused Congress to plunge us into irrecoverable debt. The consequences will be a long, destructive, and drawn out recovery and the abandonment of our principles of free market capitalism for decades.
Defenders of free markets and its consequence of prosperity must stand up to this threat. The greatness of America’s industriousness and ingenuity will rise to the challenge and we will be better for it.
This is one of those moments in history that is pivotal for the future of our country. Do we have the confidence in America our ancestors had when they took on the British crown? Are we as courageous as those who stormed Normandy beaches?
The danger of moving to total reliance on government subsidies for the manipulation of our economic system is equally as important to our future as all critical moments in history, so the question is, will we look back years from now and tell our children we panicked and ran or will we have the courage to stand and fight?
Have confidence in America and our people. Please join me in calling your congressman and telling them to vote no on selling out our values and principles. Let’s write a page in American history we can be proud of and not take the final plunge into the entitlement state.