Why is the government rewarding lack of innovation?

**Kanaric** · October 10, 2008, 12:02 PM

Seeing these bailouts some people don't know that its not just the financial industry being bailed out. Companies like General Motors are being bailed out as well, being given $25 billion within this oil drilling bill. They of course have become addicted to the teet and are demanding an additional $25 billion.

Why are we bailing out a FAILED company? People wonder why this economy is so bad yet they keep doing the same-old and yet wonder why we are in the state we are today. Failures in any industry should not be bailed out, nobody learns anything if this is the case. These companies are failing for a reason and should be allowed to fail to allow other groups that are innovative to take over. Sinking money THAT WE DONT HAVE into failed businesses is quite simply idiotic, printing money which sinks our dollar value and destroys our economy is not the answer we need. It seems all the government and idiotic pundents want to do is throw money at any problem and wish it goes away without going after the root cause.

If we give money to anyone it should be AT LEAST to REWARD innovation. The government should of given this $25 billion to Tesla so they can build an affordable electric car, not give it to some status quo company that ONLY NOW realizes that there might be money in innovation.... after they fail and because they have to.

**DekuTrash** · October 10, 2008, 12:05 PM

How much was that bailout plan?
700billion or so?

Is those morons REALLY wanted to stimulate the economy they'd give every American citizen family 1million.

Hopefully things wont get worse

**William the Bastard** · October 10, 2008, 12:07 PM

Originally Posted by DekuTrash

Is those morons REALLY wanted to stimulate the economy they'd give every American citizen family 1million.

Not too sure on this (not being an economist) but if the US gov did that then the actual worth of the dollar would decrease dramatically anyways. Therefore making the problem worse.

**DekuTrash** · October 10, 2008, 12:19 PM

Originally Posted by William the Bastard

Not too sure on this (not being an economist) but if the US gov did that then the actual worth of the dollar would decrease dramatically anyways. Therefore making the problem worse.

yeah i agree, alot of people have been saying that though.

**Каие** · October 10, 2008, 12:16 PM

I want to know why the boss of Lehman brothers was allowed to walk away with $650 million while everyone else get's screwed.

**Nietzsche** · October 10, 2008, 12:20 PM

The government shouldn't be giving any company money for innovation. That is for investors to do. Government being involved in business via regulation is what got is into this mess in the first place. I really wish people would finally understand that. Innovation should come from the private sector. Any involvement by the government should be via defense contract with open bids to promote competition among companies.

**Illion** · October 10, 2008, 03:59 PM

Those firms should be on their own imo. Giving them money for screwing up is simply ridiculous.

Also, I don't understand how entrusting the 700 billion $ to the very government that screwed up the american economy in the first place, will help.

That's neoliberalism for you

**bushbush** · October 10, 2008, 04:40 PM

Originally Posted by Nietzsche

Government being involved in business via regulation is what got is into this mess in the first place.

not really true. Absolute anarchy isn't good either. Some regulations have to be there. This mess is mainly due to the loose monetary policy from the past decade.

**Kanaric** · October 10, 2008, 05:55 PM

The government shouldn't be giving any company money for innovation. That is for investors to do.

Yes, however if they are going to give money out they should be giving to someone that will do something with it. Now GM whose just going to squander it and fail some more and only ask for money every fiscal year.

I agree with you however. If they have a good product really the only thing they should get from the government is a contract to make it for government use.... thats really the only government money i'd like to see going to corporations. If you are just going to give them money for no reason it completely cuts out the need to deliver something people want to make money.

Government being involved in business via regulation is what got is into this mess in the first place.

Not really, all the regulation was pretty much stripped away which led to many of these problems. Bush, after Enron, promised to crack down on corporate corruption and never did so obviously that didn't help either.

You can't have anarchist deregulation like corporate republicans want. You can't have the opposite either. Strangely enough the government is taking the worst of both. It seems that republicans and democrats in government are both mindless on this issue.

**danzig** · October 10, 2008, 06:00 PM

Why?

GM: Employees 266,000 (2008)
Ford: Employees 87,700 (2008)
Chrysler: Employees 132,130

That is "why"...besides companies like Ford and GM have been adapting (Ford more so) though obviously slower then they should have.

**Pious Agnost** · October 11, 2008, 03:44 AM

Give everyone in the U.S a million dollars, and the same thing will happen as to Zimbabwe, and post WWI pre WWII Germany, you'll need a wheelbarrow more of those million dollar notes to buy anything

**magpie** · October 11, 2008, 05:51 AM

Originally Posted by danzig

Why?

GM: Employees 266,000 (2008)
Ford: Employees 87,700 (2008)
Chrysler: Employees 132,130

That is "why"...besides companies like Ford and GM have been adapting (Ford more so) though obviously slower then they should have.

I agree danzig, To many peoples jobs at stake, also it is an election year.
GM etc are also caught in the credit squeeze coupled with high fuel prices.
Its sad but people in the great consumer societys are in real trouble.
For the moment the parties over.
The worlds economy is now in the AE department.

**danzig** · October 11, 2008, 08:49 AM

Though a better way to help the "big 3" would be to make it easier on them...like making it easier for Ford's 65 miles per gallon Fiesta to actually be sold here in the US. Original post said why should companies that fail to innovate be helped out...well part of the problem is we make it impossible for them to actually profit from the products.