Big Bad Bailout

In Ottawa right now, there is a lot of talk about Flaherty’s whole report on the economic situation and other matters that the government should not be involved in. We are now running a deficit because the so-called “conservative” party has spent more than they take in. Despite running out of money, the government now thinks it’s appropriate to start taking part in Big Business Bailouts. Jim Flaherty said that Canada has already released “stimulus” packages to businesses that might take a hit during the “recession”. I believe these payments already total 2% of the GDP. That’s 2% of all of the money in the nation. If you make $40,000 a year, the government is using $800 of your blood and sweat to make sure that the Big Corporation Owners and CEOs are getting more money. But the government wouldn’t do something stupid like that would they?

They claim that the purpose of this is to help employers pay employees so that no one has to get laid off because of the economic turbulence. I am in big support of helping people keeping their jobs, but the government is once again contradicting itself. Let me explain.

Basic Economic: If you want something to stop, tax it. If you want something to go, subsidize it. Just like a car: if you want it to move, you put on the gas. If you want it to stop, you put on the brakes. Makes sense, right?

The thing is, the government is flooring the gas peddle with the brakes on. That’s right. They are wasting fuel and making the Green Party angry. But that’s beside the point. The government taxes corporations at 29.5-35.5%. The government thought that this would be a good way to make money in good economic times (and look where we are now). The government then realizes we are in an economic recession. This is where they start giving the corporations bailout money, wasting a large percent of it along the way (believe it or not, the whole tax and spend system cost us 11 cents of every tax dollar before the programs come into play). It isn’t accomplishing anything. On top of all of this, we have a debt to deal with. In simple terms:

-Economy good, government greed, government steals and spends all of the money
-government theft causes recession, government has no money left over to give to companies, government gives them money anyway
-government drowns itself in debt, government prints more money, government devalues currency, inflation hurts economy more

The NDP, Liberals, and even some Conservatives will try to convince you that we need to raise taxes. A recession is not the time to go socialist. Now that I think of it, there is never a time to go socialist! Our fathers of confederation we against it, our constitution is against it, and as we will soon see, the free market is against it.

The best bailout plan would be eliminating the corporation tax. Let Big Businesses spend their money as they see fit, instead of taxing one third of what they make and then giving them money we don’t have. Keep the government out of it. Just because the NDP feels that corporations are evil doesn’t mean we should tax them. Ignore what the NDP says. Let common sense prevail!