Tuesday, September 09, 2008

mini rant about Freddie and Fannie- yes I am being intentionally simplistic

in the midst of this bailout to Fannie Mae and Freddie Mac, I am wondering how many of my Republican friends that fancy themselves ideological Libertarians, Free Market Conservatives, anit-Socialists, "stop welfare mommers," and good ole fiscal conservatives feel about the idea that tax payers are on the hook for such a huge amount of money and the CEOs of these companies will clear about $25 million for taking their companies down, along with all the other executives that will be paid... all because of a government payout.

It smacks of the evil Socialism and welfare for the rich to me. If a mother on welfare should not get money from the government, why should the CEO of one of these companies? Also, imagine how may recipients of welfare it would take to equal the amount of money a few of these guys will make (all at tax payer expense)?

Once more I would mention that I am not ideologically biased? I am a principled (to me) pragmatist and Moderate on these things. I understand the "reason" behind this bailout from an economic standpoint (although Adam Smith and his invisible hand would be wagging a finger at this!). As my friend Brandon and I were discussing, Obama is sounding like Ron Paul on this is (yes, Ron Paulites- you are correct once more).

It is my contention that between rank-and-file Conservatives and Liberals, there is a big difference. One believes in socialism for some things and the other believes in socialism for other things. One believes in welfare for a specific population and the other believes in welfare for another population. It is only the purists on both extremes that believes differently.

I am reminded of one of Gandhi's deadly sins- "wealth without work" 

the free market loving Cato Institute on Freddie and Fannie and here

4 comments:

james said...

Effin' A preach it! Awesome post dude. America's welfare woes are far worse on the corporate end of it than they are from the social end of it.

Alex F said...

For what it's worth, as one with libertarian tendencies (though I loathe politics more and more by the day), I agree with you.

Eric said...

I think the vast majority of Americans agree with you. I, along with all my friends, see this as a continuation of the mid and late-90's corporate corruption with little consequence for the profit takers (aka upper-level management) and great consequence to the rest. Pretty straight stuff. Welfare in whatever the stripe is still a moral evil...even more so when the recipients are millionaires.

DJ Word said...

i am glad many agree with this assessment. I would differ with you (eric) on the moral evil of welfare. I would say it is not the best approach to help the poor, but would not go as far as call it evil. Plus, their were forms of state sponsored or encouraged welfare throughout the Bible and church history. They just did it in a more just and proper manner.

Helping the poor is not an option (Biblically). Hopefully churches, individuals and organizations will do it and the government will just make sure it is not burdening those who are poor and helping those who are rich.

So I am with you in spirit, just not all the way- you would be disappointed if I were:)

I would agree on the late 90s, but take it to the 80s also. it was what was going on in the 80s, but the money had not yet been made.