Democratic Party’s Race to Destruction
Back in the late 1970’s, economist Alan Greenspan warned that bailing out Chrysler would pave the way for future bailouts. As it turns out, he was right. The government said the bailout was just a one-time investment for one company. With the advantage of hindsight, we can safely conclude that the government lied to the people.
Today we see a rolling series of financial bailouts – Fannie Mae and Freddie Mac, AIG and Citibank, General Motors and Chrysler, etc. – it’s still too early to know if these bailouts will fail or succeed.
This pattern of government interfering with private businesses raises a new risk. After creating influence with taxpayer money, the lawmakers instinctively pounced on the opportunity to assume the power to meddle in any company at any time.
The first sign of trouble came after AIG paid bonuses to 73 employees with bailout money. At the point, Democrats Harry Reid and Chuck Schumer went ballistic saying if they don’t return the money they would recoup the bonus money by taxing virtually all of it.
The idea that the all-powerful federal government would set out to target 73 private citizens ought to be frightening. But it’s the sort of thing Americans will be getting used to as the power of the government grows.
The next sign of trouble came when Democrats Henry Waxman and Bart Stupak sent a letter to 52 health insurance companies. They demanded these companies compile a list of any employee paid more than $500,000 in any of the past six years. They also wanted a list of bonuses, reimbursements and subsidies.
The letter didn’t explain what legal authority the congressmen or their committees have for requesting this information. It simply says they are “examining executive compensation and other business practices in the health insurance industry.”
It might not have looked so bad had this demand been to confirm efficient spending of taxpayer money, but the Waxman-Stupak letter turned out to be a fishing expedition with top lawmakers seeking information they have no right to demand. Information that they will likely turn around and use to demonize insurance executives if they decide those company leaders were paid “too much.”
It’s the Democrat version of the “politics of personal destruction,” and we’ve already seen it pop up elsewhere in the debate over health care reform.
The entire Obama health care debate boils down to whether or not socialized medicine would work in the United States. There is no proof that it works anywhere else so why would it work here? The answer is it wouldn’t, and judging from the public uproar most Americans now seem to realize that.