Why a BailOut Will Not Help the Economy

Well, here I sit blogging away like some gloomy gus, but it really must be said. First, I have to address the great line from Sarah Palin, since she has already commented on us "bloggers" sitting in our parent's basements . . . I'm older than she is and my husband and I own our home, and paid for our own clothes, I might add . . . Now with that being said, I read that she would be honored to work with the Obama administration, even if he did "pal around with terrorists . . ." Now, there's my non-partisan part in helping Sarah stay in the spotlight just a bit longer. I just can't imagine wanting that much attention, but to each his own. Now, on to the real topic at hand. We know that the auto makers are asking for government assistance, and we know that banking, Wall Street, and insurance have already received a government hand-out, but what does the auto industry's request really mean?
Our government is providing a TARP (troubled asset relief program) and on the surface, except for the fantastic bonuses for CEOs and really great parties and retreats that some are financing, it sounds like a boost for the economy. Actually when we step back and look just a little deeper or get a broader perspective, this bailout is far from a boost for what truly ails the economy. The BailOut amounts to nothing more than providing some money to corporations so they can keep paying their employees to continue coming to work. The actual product of the business has become irrelevant, and the long term need to keep employees amounts to needing employees to have withholding so the retirees can continue to collect benefits. Again, the actual product of a business is completely irrelevant in this BailOut plan. Bailing out the Big 3 auto makers is "only fair" after the Wall Street BailOut and banking subsidies, but the bottom line will remain insolvent. the Big 3 auto makers would not be having money problems if their product were providing a profit, but it isn't. Their product is only providing a place for the work force to come, and the work force is providing a withholding tax, and the withholding tax is providing care for those that are not producing anything except medical bills.
My husband and I went out to lunch today. We went into a nearby city to shop for Hanukkah gifts and my husband treated me to lunch. As we sat there discussing the shopping and the gifts and this blog in the planning, he made the comment that he had noticed a change in spending in some places, but not in others, for instance the restaurant where we were dining didn't appear to be affected by the economic gloom. I looked around and agreed that we had noticed a difference in some places. The stores in which we had stopped were not crowded and there were a number of sales that only a few years ago would have brought the shoppers out in droves. I also noticed in the restaurant, the median age must have been 70. As I looked around, I noticed a couple of people that were very obviously disabled or special needs and the rest of the crowd made me look like a kid. I'm 50 and without a doubt, I was the youngest diner in the restaurant. Only the serving staff was younger than I. So, this bailout on Wall Street will keep the group with the most expendable cash still spending . . . those that are living on their investments along with the withholding from their grandchildren's paychecks.
The problem with our economy is simple and it is this. The working class isn't producing anything the working class is buying. The main contribution being made by the working class right now, is withholding tax, and those that are working are the only ones contributing at all. Our economy is a shambles because it is capitalism based upon making money, not product. BailOuts won't help. Stimulus checks won't help. Certainly politics won't help. We need to become a nation that produces a product that is needed! The TARP just won't cover that!
But lay up for yourselves treasures in heaven . . . For where your treasure is, there will your heart be also. the Gospel according to Matthew