Dude, Where's My Bailout?

I do not recognize the America of the past ten weeks. America used to be the land of opportunity. The liberty to make your own choices and to reap your own harvest. A country with liberty and justice for all. A place where the persecuted of the world could come and make a new, better life. I do not recognize the America of billion-dollar bailouts.

Last week the American automakers were on Capitol Hill begging for $25 billion to "rescue" them from their own ineptitude, and this morning we learn that "the government agreed to shoulder hundreds of billions of dollars [$306B] in possible losses at [Citigroup] and to plow a fresh $20 billion into the company. (AP)"

Remember how when you were a kid and you screwed something up, you could run crying to your mom and she would kiss it and make it all better? That's a mom's job. It is not the job of the US House of Representatives. If George Orwell was worried about Big Brother in 1984, we should (with apologies to Martin Lawrence) be worried about "Big Mamma" in 2008 .

Since when is it the job of the American taxpayer to pay for the mistakes of business? Why in the world would We the People of the United States of America stand by and let our children's future be re-mortgaged? This is not a "rescue", it is National Socialism.

The House and the Treasury Department are falling all over themselves to give away money we haven't earned yet to buy into businesses that have run themselves into oblivion. Our Congress carelessly flings money about, with no regard for three fundamental questions:

1. Why are they failing?
2. How will your business change so this doesn't happen again?
   
3. Who is going to pay for this?

Question 1 is multifaceted: Detroit has been losing market share for 30 years because it has bad management, pays non-competitive wages and benefits to union workers and retirees, and has never innovated or marketed or priced well enough to match their competitors in giving people the kind of cars they want.

You should know how greatly it pains me to say this, because both of my grandfathers worked for and retired from GM, took great pride in the work that they did, and in the products they made. It has been over 25 years since they retired and they would not recognize the smoldering heap that is today's American auto industry.

Detroit keeps making the same terrible decisions, assuming the stupid American consumer will keep buying it. Nancy Pelosi & the House keep jumping in to bail out failing companies because they think the American taxpayer will keep buying it.

Question 2 is fairly easy: they won't. They either don't know how to change, or are so entrenched that they can't change. Companies that cannot or will not adapt to changing conditions will die on the vine - that is Capitalism.

Question 3 is the easy one. We are. Your government has no money of its own, it is your money. My money. Our money. And in this case, it is our great-grandchildren's money.

I have a better idea.
Since the House is in such a giving mood this Christmas, how about reaching into Santa's bag and funding education? For example, in 1975 they passed IDEA, the Individuals with Disabilities Education Act which provides great things for children with special needs in our schools. Yet they also promised to fund IDEA with 40% of the per-pupil costs and have never come close - under 20% is the best they can do. This shortfall creates an enormous burden on local communities and denies full opportunity to all students -- with and without disabilities.

I did some quick math. According to the NEA, there are 6 million students being served under IDEA. They estimate that the Federal government shortfall amounts to about $3500 per student, or $20 billion per year. This would not only allow us to provide better services to kids with special needs, but free up funds that are currently pulled away from "regular ed" to cover the shortfall. Maybe then we could produce some fresh new US citizens that are actually smarter than us, who could solve a problem without just throwing money at it. Education is our only hope. Lets fund it.

A higher-quality education for all. That sounds a lot more like the America I know and love. You want to bail something out? Bail out the public schools. Dude, that would be sweet.

update - Since this posted, people have been emailing me great articles like these. I am more encouraged since I read them:
Some Small Banks Are a Refuge From Credit Crunch (FoxNews)
Do Detroit's Dire Job-Loss Predictions Hold Water? (FoxNews)
See Congressman Elijah E. Cummings' comments (he, at least, appears to get it)
Memo to Rich Guys: We Bailed You Out, Here’s How You Can Return the Favor (Tommy DeSeno)
.