Allowing the market to balance

As a student of business administration, I can guarentee you that we are discussing what is happening in the economy right now. And, to make it even more interesting, my current class is “global strategies”. Wow!

The big question is how involved should our country, the US, get in “bailing out” big business. Particularly interesting is the issue with the “Big Three” American auto companies.

Some say we have to save the unions and the car companies because they are the heart of the country. If we let them fail, the hit on the economy will be worse. Others say that this is a natural flow of bad business going under, opening the way for new business/new ways of business to emerge.

But, when does it stop if our government bails out these three companies? Will they come along and save YOUR company, my company? If they give these companies money, will they then have to give all the other companies money? What happens when the airlines come to them, saying they can’t be allowed to fail?

I have watched news shows of interviews of various people who either have worked for, or are currently working for the auto companies who are being proactive in this situation. One person has already quit his job and started a small business. Many others have found other, “Side jobs” for just in case. Still others are currently getting training, or are in school, so they are positioned for new jobs.

We can either choose to move into a socialistic society, or we can allow the markets to run their natural course. Weed out the weak and greedy, reward the strong and wise. Failure may actually produce a stronger US auto industry. When our kids are struggling as a result of bad decisions they make, or when an entrepreneur fails at a new venture, part of the learning and growth is to allow them to fail.

Margie