Bail-Outs and Stimulus Packages

The difference between “Bail-outs” and “Stimulus Packages?” Their spelling. Oh! One other thing. Similar programs in the past have failed, and today’s efforts are doomed before their birth. Here’s the bottom line: Our current financial and economic collapse is a direct result of the social failures enacted over the last 75 years!

History tells of the social failures throughout the world’s nations. History tells of the failures of our own social programs. Social Security, Medicare, Medicaid, Entitlements, Foreign Aid, Education, is there any social program, which can be declared a success?

The Great Depression can be measured as that time between 1929-1946. Almost two decades. Massive federal programs of the Roosevelt Era were more an effort to improve conditions than they were a statistical success. Further, the current belief that WWII, and the huge dollars that went into producing a war machine, brought us out of the Depression is wrong!

With the surrender of the Japanese in August of 1945, America found itself with 20,000,000 more people than existed in 1930, and no housing, no automobiles, no appliances, none of Life’s demands required by a population, now totaling 135 million men, women and children, eager to buy, with money saved, that which had been unavailable for almost 20 years!

As President Truman released 10,000,000 uniformed men and women into civilian life they found waiting employers looking to produce what the market demanded.

The difference between then and now is apparent to those that look, and see what they’re looking at. During the war years money was accumulated, saved, because there was so very little to buy. The economy was “stimulated” by the market’s demands for a wide range of goods and services long unavailable. Times were good. Very, very good.

Today we have a glut – a massive oversupply of houses, autos, computers, appliances, most everything.

Why the glut of goods? The culprit(s) are easy to identify, although the (minor) media and Socialists (aka Democrats) will deny the allegation. It begins with Congress. President Carter initiated the movement to provide housing for those who did not meet current loan standards, and Congress demanded that lending organizations – banks – drop interest rates, and lower the threshold for qualification. These two areas, Housing and Banks, spanning from coast-to-coast, reaching from Canada to Mexico, are the principal culprits in today’s malaise, first spawned by a flawed effort to meet, with private resources, the living standards of those less fortunate, and second, a frenzy of construction driven by rapidly rising land and housing values, each promising riches for all time. For several years the banks and developers have enjoyed the ride. Now, not so much.

At this critical juncture in our economy we are burdened with a Congress unable to understand how the market place works in the real world we call America. There is a
significant oversupply of homes. New homes, foreclosed homes, older homes, vacation homes, homes built on speculation, and entire developments in various stages of limbo.

Similarly, there is an oversupply of vehicles. An oversupply, which literally threatens the continued existence of a true American industry. It’s more than just an oversupply, of course. Contractual obligations, foreign competition, governmental requirements, and market demands for certain types and makes of vehicles, are each crushing down, dictating bankruptcy/reorganization.

Bail-outs? Stimulus packages? Putting money into the hands of lending institutions and individuals who are inundated with goods and services not demanded by the market place? No!

You agree? Want more thoughts on this, and a variety of other subjects important to our lives? My recently released The Politically Incorrect Notebook covers 25 different and contentious matters, and is available by calling Three Rivers Books at 1-863-289-1191. (It’s also available through amazon.com, but at a much higher price!)

photo credit: lakewentworth