Too Big To Succeed

 For the past couple of years we have been hearing a lot about companies that were “TOO BIG TO FAIL”. We have heard this phrase so much it has become a part of our everyday language.

  The phrase, too big to fail was ment to describe companies and or industries that the government felt were too ingrained in our economy to be allowed to fail in the free market way that our free market system works.

  So our wise and powerful Oz like leaders decided to step in with government tools such as TARP and bailout these companies and or industries, funded by tax payer dollars. Now, the wise and powerful Oz like leaders felt no need to ask the opinion of the tax payers, nor would they listen when the opinions were given anyway. They would just smiled while nodding their heads, and then said wise and powerful Oz like things such as,”I weighed the cost of doing nothing”, and then voted for TARP.

  So now that we have been taught what too big to fail means , according to our wise and powerful Oz like leaders, what does too big to succeed mean?

  Well in my humble opinion it describes the current condition of our local, state and federal governments. In all cases of our governing bodies, these governing bodies have grown far beyond their intended and needed purposes.

  We have town and county governments taking tax dollars and sharing it out to non-profit organizations such as Little League and charitable organizations. These may be worthy organizations, but is it the place of government to collect tax dollars only to hand it out to other groups that have the ability to fund raise directly from the people. I say no, it is not government’s place, this smacks of wealth  re-distribution.

  We see our state governments ignoring that which they are charged with by the constitution such as insuring economic freedom and job growth in the private sector, only to see the state government working to grow government sector jobs to the point of being the largest employer in a state. We see these same state governments with their hands out to the federal government for funding of roads and schools, while at the same time the state government is spending tax dollars on programs such as handing out needles to junkies. Is this responsible governing? Again I say no!

  Now when we talk of government gone wild, well we must always look to the federal government for a clear example of what we should not be doing. Our federal government has completely abandoned our founding principles.

  The Framers of the Constitution never intended for government to be the arbiter and guarantor of all of our needs. The Framers intentions were to remove road blocks put in place by a tyrannical monarch so that all free people could achieve all that they were willing to work for. There was no guarantee of success, only of the opportunity to attempt to succeed.

 Thomas Jefferson said in his first inaugural address, ” a wise and frugal government , which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned.”

  We are now witnessing a federal government that believes that it can better decide not only how to run a private company or industry, but that believes that the government can also decide better than an individual how best to ensure their own health care needs. A federal government that feels empowered to take the bread of our labors from our mouths and to distribute it to those who have not labored. 

  We have watched over the decades, sometimes through history and now as eye witnesses, the out of control growth of all branches of government, on all levels.

 We have seen government become the guarantor of our senior years, we have seen government become the safety net for our un-employed and for those who would be labeled needy. We stand by and watch as government becomes our protector from both man-made and natural disasters. When it floods we turn to government. When the wind blows we turn to government.

 If we sign a contract of our own free will and do not take the time to understand that contract, we turn to government to settle the issue.

  We have watched over time, but more importantly we have been a part of allowing the ever-widening expansion and scope of government. But government doesn’t just grow on its own, though it is a natural phenomenon of government. The check and balance of our government is supposed to be the people. We are supposed to hold our elected officials accountable through the election process. If our government has grown out of control, it is in large part due to, we as citizens, allowing it , but not just allowing it, but in many cases demanding it. Benjamin Franklin once said when expressing his concerns for the future of the republic style of democracy, that the new government would not turn into despotism unless, ” the people shall become so corrupted as to need despotic Government.” I would say that we the people have been corrupted and that despotism describes our current form of government perfectly.

  But can this form of government succeed? Can a government that must continue to take the “bread from the mouth of labor” only to subsidize those among us that choose to not participate in the “GREAT EXPERIMENT” succeed ? Can a form of government that survives by creating more and more victims, and dependents of the government succeed? At some point we will have more dependents than laborers. At that point the government will have become too big to succeed. We are dangerously close to that point right now. Look to Greece as an example of where we are heading.

  It is not too late to turn from this path of corruption . It will require not the government changing, but the people. We as citizens must fight our urge to run to government for our every need. It is not the government’s duty to rebuild our homes after a natural disaster. It is not government’s duty to insure that you and I have jobs and health care insurance. We as citizens must not demand more government involvement in our lives , but less. Our elected officials will do that which they feel will get them re-elected. So if we as  citizens demand more government regulations, that is exactly what we will get.

  Some will now ask, how do you change the attitudes of the citizens? How do you convince the people that they can survive on their own, after they have depended on government for so much, for so long? Unfortunately it takes them living through and under despotic governments. We are witnessing the change in attitude today. We are seeing a growing number of citizens realizing that government has gone too far. I believe that we will see even more people over the coming months and in the up coming elections, changing their attitudes. It will not be the end but only the beginning. We as citizens cannot allow the people we elect to replace the despotic leaders, to become despotic themselves. We must be ever watchful and we must vote out those who would attempt to deprive us of those rights that our Founders declared as being bestowed upon us by our Creator,”Life ,Liberty and the pursuit of Happiness”.


5 Responses to “Too Big To Succeed”

  1. Bill Says:

    One of the things that irked me was the fact that these companies that failed, AIG etc, was the fact that the executives in these failed companies were to get millions of dollars in bonuses that a contract called for.
    Take a look at Rep Don Manzullo (R-Il) question Neel Kashkari about bonuses paid to an executive at AIG.
    Contract or not,these bonuses should not be paid out. I have no problem with executives receiving payouts of any kind but to a failed company?
    Not a chance!

  2. frankknotts Says:

    Bill, the contracts were negotiated before the bailouts. If the contracts were written in a way that allowed the bonuses, even if the companies were losing money, then that is the company’s or the board of directors fault. But it is a dangerous precedent to allow the federal governmet to come in and break a private contract between two private parties. I believe in the case of AIG congress instituted a special tax on just the AIG executives. This is clearly un-constitutional. That is a case of too big to succeed. If these companies had been allowed to fail, they would have most likely been bought up. At that time the contracts would have been voided or at the least would have been paid out with private dollars, not tax payer money. The paying with tax payer dollars was what bothered most people. And let’s not lose sight of the fact that it was federal interference in the housing market, forcing lenders to loan money to people who could never pay it back, that cause the bubble. Everything that came after that from the feds was just smoke and cover.

  3. Tim Pancoast Says:

    The bonuses are another reason why bankruptcy would have been a more proper route. Durring bankruptcy proceedings, the judge could have had the bonus contracts renegociated.

  4. frankknotts Says:

    Tim, you are correct. The bottom line is, that the market will always correct itself. Sometimes it is painful, but pain is a learning experience. When we feel pain , we learn not to do that again.

  5. Bill Says:

    Thanks Frank and Tim for clarifying that point. You are so correct in the fact the government did indeed mess things up AGAIN ie housing market;unqualified borrowers etc.
    So true and right on with these bonuses. I don’t want the government interfering with business and nullifying contracts.
    Maybe bankruptcy would have “corrected” things and as Tim says a judge can determine to have those contracts renegotiated.
    Thanks and I stand corrected gladly….

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