Bailouts, taking money from the poor and giving it to the rich??? By Branden Elmendorf
With more and more big companies looking for hand outs from the government to help them through these troubling times, even though it was their lack of foresight that put them in a worse position, what is happening to the poor? Recent studies from Greenstein’s center have shown dramatic increases in the number of people in the US living below the poverty line, which for the US is $21,200 for a family of four1. The estimated levels of people living under the line are 36.5 million Americans, and that number is only going to rise as the economy is projected to worsen. With these people falling further and further behind and large companies still spending frivolously (i.e. all US auto maker representatives flying to the bailout hearing in private jets) why are we continuing to turn our backs on the poor, and help corporations? I can think of only one word, Lobbyists!!
1 http://news.yahoo.com/s/time/20081125/us_time/08599186184300
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I agree, it is absolutely ridiculous that these automakers would show up on private jets–morons. The thing that we can’t forget though is the fact that these companies employ thousands of Americans, and if they go under, so do all those thousands of jobs, thus increasing unemployment and poverty.
scottcraft - November 25, 2008 at 7:21 pm
I AGREE!!!!! The actions our government has taken during this global economic crisis seem to be very counterproductive in my opinion. How can they provide billions of dollars to companies while the citizens these companies rely on to purchase their products are lossing their jobs and homes left and right!
Jazelle Reed - November 25, 2008 at 9:53 pm
“How can they provide billions of dollars to companies while the citizens these companies rely on to purchase their products are lossing their jobs and homes left and right!”
I think its because if we let these companies fail then many people would lose jobs. On top of that, many people’s retirement portfolios would plummet because they own stock in these companies. The thing that all of you seem to be missing is that the bailouts aren’t “for the companies” – They’re for the people of America. Bailing out these companies was part of a plan to stabilize the economy, cut job loss, and cut the amount of damage done to people’s retirement plans.
As for showing up on private jets, it might be a little ridiculous, but you also have to realize, these guys are running huge companies where efficiency is important. They need these jets because they need to be in so many places all the time. Do you expect the CEO of a company who has millions of people relying on him to make timely decisions to start booking flights on Expedia.com, and making his schedule around flight times from Jet Blue and Delta?
I hope not. In fact, if I owned even 1 share in any of these companies, I would want the CEO to be able to travel wherever he needs to, whenever he needs to, if it was going to make the company more profitable and better functioning.
I didn’t see anybody giving Obama or McCain any problems when they flew around on private jets. How about the president of the USA for having Air Force One? There is a reason he has it, he needs to be able to travel anywhere, fast, to broker deals and talk to people. Get over the jet. It’s a ploy made by the media. Stop falling into media traps.
BMK
bkriger - November 27, 2008 at 11:51 pm