People still wonder why our dollar is doing so poorly compared to hard commodities and foreign currencies. The blame can be put on several different causes but the number one culprit behind it is the same group that we look to correct the problem, the Federal Reserve. If staying out of a recession was as simple as printing our way out of it, we'd never face such problems!
Many blame free market capitalism for the decline of the dollar, but it has been our socialistic tendencies that got us here, and we continue down our socialistic patterns even today. Our own president, George Bush, has admitted that "we have given up free market principles to save the free market," which leads us to the auto industry crisis.
Rescuing the auto industry faces many problems from an economic standpoint, and that isn't mentioning the legality and constitutional authority of using taxpayers money to "bail out" private corporations. You have to ask yourself, why are they facing the point of bankruptcy in the first place? It is because they're incompetent at manufacturing vehicles and make poor business decisions.
If you let them go into bankruptcy, a more competent and more efficient company can come in, buy their assets, take over and run a more competitive, successful business.
Giving them money just so they can stay in business is simply propping up a bad company whose bankruptcy is inevitable. What we are doing is prolonging our recession and ultimately destroying the dollar.
Trent StrongDanville
