The operative question, I think, is where do you stop doing the bailouts?
Credit institutions, banks, auto manufacturers, airlines, lumber, oil and energy?
Here in Canada, they're talking about bailing out the auto manufacturers, who
have lost many jobs within the last couple of months, but not about bailing out
the lumber industry which has been struggling for the last couple of years.
Geographical economic politics come into play here in a big way.
If you bail out the auto industry, you aid the central part of the country, and
if you don't help out the forest industry, you send the western part of the
country into economic freefall.
Fair play in all of this, seems to have been set aside in favor of the political
voter base. Help out the areas that have the most political clout, and forget
those who don't have the power base.
Not a good sign for those of us who live in Western Canada. This leads to a lot
of anger on the part of Westerners. Westerners who control most of the resource
base of the country, by the way.
Is it the same way in the U.S. where the bailouts are pitting State against
State?
Are there hard feelings between States regarding this issue, or does it even
exist?
I thought I had a basic understanding of ecomomics. Obviously, I do not. The experts seem to think that the US gov't can do unlimited "bailouts" of all kinds of businesses. In my simple mind, that will lead to partial or even full gov't ownership of the means of production and capital. So are we going to have five year plans like Lenin did? I hope it all works for the better, but I am a bit distrustful of all this intervention. Can the government actually forstall a deep recession or even depression? I just don't know the answer. <img src="/ubbthreads/images/graemlins/confused.gif" alt="" />