Is Capitalism Dead?

As America plunges deeper into a building economic crisis, many Americans expect the federal government to do something to help ease the pain and prevent further problems. This spurred an unprecedented economic bailout sending billions upon billions of tax dollars into the private sector. However, before the money could even be spent, the cries from other industries rang out. Nobody wanted to be left off of the gravy train.

The big three automobile producers have said that they require assistance to stay in business. The mainstream media highlights the wealth of the top executives and contrasts this with problems that uneducated and untrained workers are having. Congress is outraged, and pledges that things will have to change before tax dollars will be given to the companies. Immediately the trend was to force the companies to change leadership if they wanted to receive federal money. However, soon that wasn't enough.

In the most recent negotiations, Congress has decided that they will require at least 20% of the stock be given to them. Thus, nationalization on a scale unheard of since the Korean War is at hand. In times gone by, the government would have labeled any attempt at governmental control of the means of production as communism. Any notion would have been dismissed out of hand, and the person suggesting such a move would have been ostracized by the Congressional peers. However, the Congress, led by Pelosi and Reid are proud of their idea and will tell anyone that will listen that this is the only plan that makes any sense. But, does it really make any sense at all?

We are a free market capitalist economy. A basic tenant of our system is that if you cannot succeed someone will come along that can do a better job. No needed sector will disappear, only ineffective segments within a given sector need worry. If Ford and General Motors cannot produce vehicles that Americans want to purchase, someone else will. If those companies happen to be headquartered in Japan, Germany or South Korea, that tells us nothing more than that the next Americans to attempt to enter the market would be well served by taking note of why these companies are more successful than the failing American companies. There is not one single reason for taxpayers to fund a failing company or for Congress to ignore the limits placed on it by the Constitution of the United States and assume control of a private sector entity.

Further, the US government has a proven track record of failing miserably when they attempt to run a private business. We all know of the joke that the U.S. Post Office has become, but that is just the tip of the iceberg. In the last few days the infamous story of the Mustang Ranch has been circulating. For those that don't know, the Mustang Ranch was the first legal brothel in the United States. After tax problems became too great, the IRS took control of the ranch. As require by law, the government then attempted to run the business. They utterly failed, and eventually simply padlocked the ranch and moved from there, eventually selling the ranch on ebay for $145,100. In all honesty, if they federal government failed at running an established and profitable business in the world's oldest profession, why would anyone believe they could lead a huge corporation with the entire world as their marketplace?