The now infamous “stimulus package” was supposed to save the
failing companies, which were “too big to fail” from collapse. The bailout was
supposed to save jobs. The General Motor Company once employed about 395,000
blue collar workers. As of 2012, they employ about 40,000.
Detroit just defaulted on a 2.5 billion dollar loan to avoid
bankruptcy. The city is no longer the sprawling metropolis with massive
factories turning out the new cars every few minutes as the entire world
clamored for the new technology. Over 40 percent their revenue this year,
according to Fox News, went to paying bond, pension, health care and other
payments. If their current system were to continue, by 2017 they would be
paying 65 percent of their revenues to creditors.
By July first the city’s deficit in the budget will be about
380 million. Their long term debt could be as much 17 billion dollars.
In the southern region of the San Francisco Bay area in
Northern California, is a place called the Silicon Valley. Originally named
after the silicon chips, it now has taken on a different meaning; many large
technological corporations in the area, most of whom are rich beyond the dreams
of avarice.
One of the companies is Apple Inc. In the years between
1986-97, the company began to decline. Instead of getting a stimulus or being
bailed out, the company tried new products to keep their heads above water.
Some of these were the iproducts.
If Apple had gotten a bailout, they would have had no reason
to struggle to survive, and we may never have had the iPhone.
The first company Bill Gates and his friends started failed.
But that first company, (Traft-O-Draft) got them into writing software for
computers. If the first company had been stopped from failing, it is very
likely Microsoft would never have gotten started.
These companies were not started by powerful trusts, they
were started by kids. Kids who did not know that bad companies should be saved
by the government, kids who forgot to sign up for their benefits. If their
failures had been turned into successes, then we would all have lost out. When
the government leaves the market alone the bad businesses die and the good ones
make themselves better to survive. Who knows what would have happened if
Detroit had been left alone? Perhaps we would have flying cars.
Andrew C. Abbott
No comments:
Post a Comment