How to Bailout a Bailout | Teen Ink

How to Bailout a Bailout

December 10, 2008
By Anonymous

As you probably already know, our countries’ economic crisis is worse that it has ever been before. The government thinks irrationally about their decisions. When they are hit with news, they are pressured to get their plans out before the general public has a chance to hear about the bad news, so they don’t have time to think through the things that are at stake. That needs to end.

Recently, Congress “had reached a deal in principle with the White House on a 15-billion dollar rescue of the ailing auto industries.”(Yahoo! News) This means, that the government is “bailing out” three auto industries. The thing is, with economic crisis going on, the American people don’t have enough money to buy cars so the money that Congress is giving the auto industry is just sitting there for the companies’ use! We are potentially wasting 15 billion dollars on things that won’t even be bought!

At the same time, to give this money to the auto industries, the government is cutting back on our states budgets. Since they are cutting back on state budgets, the companies that are connected to the state such as some bus companies, the companies have to raise their rates so they don’t go out of business. And what happens when people have no money and the prices go up? Exactly, they stop using that service, and when they stop using that service the company can go out of business or, better yet, raise their prices on the few faithful customers that are dedicated to that business.

If you ask my opinion, I think that the government should give the money that they are giving to the auto industries (which will be wasted because nobody can buy cars) should be given back to the states budgets. If the government does this, the companies will lower their prices and have more business. If they have more business, more of their money will go to taxes which will be given to the government and just create a continuous cycle.

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