The Student News Site of Sacramento City College

The Express

The Student News Site of Sacramento City College

The Express

The Student News Site of Sacramento City College

The Express

ROAD TO RUIN | Bailouts break the bank

Jack Remson | Opinion Editor
[email protected]

Lately there’s been a lot of talk about American automakers as they follow other industries downward.
The big idea is to give these automakers a check from the government — a “bailout.” These same companies have been having financial problems for years and performing poorly compared with their foreign competitors. They’ve never been given a bailout before; why now?

I think all this extra attention on automakers is due to the fact that other ailing industries have been given this injection of federal funds. An unprecedented level of aid from a government in panic mode makes people think, “these other industries are getting help, why not the automakers?” The idea makes sense, but if you bail out every industry that’s having difficulty, where does it end?
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Preserving healthy industries requires competition. If companies begin to expect bailouts, that’s not good for the economy as a whole. Some of our largest local industries are health care providers and education services. Imagine if the business managers at your school or doctor’s office realized that the government would just give them money if they weren’t getting enough business. I think you, your doctor and your professors (the ones that are actually trying to help people) would suffer for it.

The auto companies are just the latest recipients of bailout money. I think the government needs to stop before it starts a pattern and ruins the competition that keeps industry going. Just because some companies are having trouble is no reason for the government to help them. If they fail, so be it – those companies that managed to stay afloat were sharper, and yes, luckier.

These survivors are the companies that deserve to keep going, not the ones that need to be bailed out.
When you pay your taxes, think of a company like Ford. Think of the quality of their products. Then ask yourself if you want them to get your money.

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