Business Headlines
| The Corporate Welfare Disease is Spreading |
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| Written by Rob Viglione | |||||||
| Wednesday, 19 November 2008 01:08 | |||||||
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With the unprecedented bailout of the finance industry, it's only a matter of time before other corporate lobbyists come knocking on the federal door. As a matter of fact, the automotive and now retail industries are pushing for their own bailouts. Why not? The government is redistributing all of our money to corporations in finance, should they do the same for every other industry? The CEO of JC Penny's certainly thinks so.
With the unprecedented bailout of the finance industry, it's only a matter of time before other corporate lobbyists come knocking on the federal door. As a matter of fact, the automotive and now retail industries are pushing for their own bailouts. Why not? The government is redistributing all of our money to corporations in finance, should they do the same for every other industry? The CEO of JC Penny's certainly thinks so. The United States has turned into a society of deadbeats. We have turned into the world's largest debtor nation, borrowing from the rest of the world to subsidize unrealistic living standards. The financial collapse is reality's way of catching up, of telling us that the party is over and we must now live within our means, actually paying down some of our debt. This process is called de-leveraging. The majority of America's national income, Gross Domestic Product (GDP), is comprised of consumer spending. Given that we have had a prolonged current account deficit, this means that our spending has been subsidized partially by other country's with surplus savings. No wonder why the retail industry is now lining up at the federal trough. With consumer spending slumping, retailers who realize they cannot induce legitimate customers to buy their products are turning to government to force them. Make no mistake about it; this is not free market Capitalism. This is not free enterprise and the way free societies function. This is not the kind of nonsense that made, or will keep, America great! About the Author: Robert Viglione is a writer, hedge fund manager, real property broker, and Humanist. He recently launched Viglione & Partners Assurance Group, L.P., SoCal real property Advisors, Inc., and founded The Freedom Factory. To read more of his work visit The Freedom Factory.
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