Photo by Russell Lee, WPA, 1937
Where your AIG tax dollars went!
I’ve come to the conclusion all those waving spears about AIG giving bonuses are nuts. First, any organization is smart to give sales bonuses.
Now for the real reason I believe coming out against AIG is for idiots.
It’s like the wino you give a $1,000 to. You know he’s going to blow it all. Liquor, drugs, women. No new suit, no investing in stock.
In the fall of 2007 I warned about this in an Arizona Republic article, “Just Say No to Bailouts.” It ran in Nov. 2007, but I always had a six week lead time on my articles.
I feel like the wife who goes, just before you give that wino the $1,000, “Honey, don’t. He’ll just blow it.” Yet you didn’t listen to me. Last November you wed, by voting for, one of the two guys who actually advocated bailing out AIG. Both left the campaign trail to make sure AIG got that money. Now you’re complaining that the wino spent the money on cheap booze and women. Tough…. – luck.
I said let AIG fail. Everyone said they had their hands in too many pockets and the economy would fall apart. I have found other businesses step in when another business falters or goes out of business. Everything works out.
So don’t cry to me the government is putting too much on its credit card. I’ve preached here how during the 20th Century Depression (there’s been more than one depression in our nation’s history) there were two failed “incentive programs” (WPA was one, wait ‘til you get that tab for social security 100 years after that dismal legislation was passed). Even Obama admits Bush’s economic stimulus checks and bailouts didn’t work. He continues to do the same programs like a guy spinning his tires on a car stuck in sand.
The best thing to do is become a marketing sociologist and look at cycles. That will tell you were the economy is going.