Big Three Bail-Out. First Step On Road To Government Managed Economy?

I am deeply troubled by the "bail-out fever" that has overcome Washington and, apparently, the nation. I don't have any facts or brilliant rationale behind this view, I just think it is a very serious mistake to give the government so much control over our lives.

Make no mistake, these bail-outs come at a price which is larger than the dollar amount involved. The government getting a stake in major industries means control over them. For example, if we bail-out the "Big Three", consumers will no longer decide what cars are made based upon which cars we want to buy, the "car czar" will decide what types of vehicles are made available to us based upon things like fuel economy and other things that are "good for us".

Frankly, I'm appalled at the spectacle of the Big Three CEO's begging for money. The pitiful scene was made worse by the fact that half the reason for their need for help is the regulations imposed on them by the Congress they were begging from.

As Holman Jenkins notes in this article from The Wall Street Journal, there is a big problem with the proposed rescue plan; to wit: "[t]o become "viable," as Congress chooses crazily to understand the term, the Big Three are setting out to squander billions on products that will have to be dumped on consumers at a loss". His article goes on to point out how CAFE standards set by Congress, along with the lawmaker's allegiance to (and fear of) the UAW, have been the catalyst for a great deal of the automakers' problems.

The more general problem is the fact that we are quite possibly seeing the first steps in the "nationalization" of the US economy. The free market, which has ruled in America since its inception, and which, I believe, is responsible for our prosperity, may be giving way to a state managed economy. Worse, business leaders, first in the banking industry, and now the auto industry are asking the government to take over. They should be fighting this, kicking and screaming; instead, they are begging for government "help".

Worst of all, President Bush is apparently going along with this plan. Why? Isn't it obvious to him that the Democrats just want him to sign off on the "first steps" down the road to this new economic reality? Thus, next year, when they make the really dramatic changes, they can say "hey, George Bush was behind it". He's giving them cover. Why?

The whole bail-out mentality really troubles me. Lenders, borrowers, businessmen, none of them want to be responsible for their plight. They all want someone else to rescue them from mistakes they made. Why should we do it? And how long can we afford to do it? I'm not an economist, but I truly believe that if we continue on this path, our economy will be ruined and our future will not be anywhere near as prosperous as our past.


UPDATE 12/13:

Check out this PowerLine article. It contains sentiments similar to mine regarding the way in which the Bush Administration has chosen to deal with the auto industry bail-out. The following lines from that article reflect my views completely:

"To me, the most disheartening aspect of the current bailout spree is the spectacle of executives from the banking, investment banking, insurance and auto industries begging the government for cash like teenagers who have blown their allowances and are abjectly asking their Daddy for more money. The government as Daddy--wasn't that supposed to be a liberal concept?"