GOVERNMENT BAILOUTS

No Bailouts & Governmental Ownership of Companies…Period!

The last year has been a true test of our political…I dare to say, leaders, ability to manage the economic recession while still abiding by the Constitution. Regrettably, they have failed miserably violating at a very minimum, the 10th amendment, which limits the powers of the Federal Government to only those specifically granted to it by the Constitution. The Government is also not supposed to be picking winners and losers in the marketplace.

As we also found out, one of the cornerstones of American success has been its protection of the rule of law, and when the Government decides that returning political favors is more important than preserving contracts, that creates a far worse problem for our economy than letting a company fail. Capital flees our country when this happens, a sign of distrust in our once trusted society of capitalism.

Those who see failure under capitalism as a negative clearly do not understand why, despite its faults, it is the greatest economic system the world has devised and has led to enormous improvements in global prosperity. Capitalism efficiently allocates resources towards the most successful decision makers, and penalizes those who make the wrong decision. When the Government steps in, it rewards poor decision-making.

I do not support taxpayer ownership or bailout of any private companies, as it creates an enormous moral hazard. The Government needs to let the market forces work, which allows economic normalcy to return more quickly.

As your representative, I will oppose bailouts and the unconstitutional practice of governmental ownership of private companies. We need to let the market decide who succeeds or fails, not some government bureaucrat willing to gamble with the tax dollars you and I, not the Government, has earned.