Thursday, December 11, 2008

Jim DeMint: Still telling it like it is.

South Carolina Republican Senator Jim DeMint is still right on the money when discussing the bailout of Detroit's Big Three automakers.  Check out this piece from the Business & Media Institute.

DeMint is warning of the consequences of this ill-advised bailouts.  First, he suggests that "we're going to have riots" of workers who lose their jobs in industries not bailed out.  Those workers, logically, will wonder why their job wasn't saved by a government bailout when others were.  And who could blame them?

Second, the bailouts (of the financial industry, auto industry, and any other sector that follows) "will result in inflation" because of the amount of money borrowed and/or printed anew to finance it.

The government should not be in the business of propping up some employers (and their employees) while letting others fail.  And since there isn't sufficient money to prop up all employers, the only fair option is keeping their fingers out of industry - if one goes bankrupt, that's why we have bankruptcy laws.  And printing money is not an answer that our economy can live with.

And who is really to blame for pushing the Big Three bailout this far?  DeMint has that answer too . . . "the primary driver behind this is the unions because bankruptcy allows the auto companies to basically restructure all their contracts . . . then essentially the unions lose all their leverage."

A politician telling the truth is like a breath of fresh air.


c.rook said...

Jim DeMint the the Gov. of S.Carolina are two very sharp individuals. They know their stuff and are well spoken. It is too bad our political system doesn't elevate the best individuals. That is a dissappointing aspect of our current political culture.

c.rook said...

Correction - I meant to say Jim DeMint AND the Gov. of S.Carolina in my prior comment. Sorry.