In a real capitalist society when companies fail, they go out of business

Observations on the Entrepreneur Revolution

This is an excerpt from Mad Magazine’s “20 Dumbest Mistakes of 2009″

In a real capitalist society when companies fail, they go out of business. But in the U.S. some companies are designated as “too big to fail” and get special treatment. These behemoth institutions are actually allowed to steal money, screw investors, post record losses and STILL pay out millions of dollars in bonuses to the greedy, incompetent, reckless, white collar, criminal executive scumbags who run them. President Obama was so upset about this that he gave a disapproving speech to Congress before signing off in a multi billion dollar government bail-out plan. Ain’t that America!

Why is MAD Magazine giving the best economic commentary out of the entire media?

My Thoughts: There is a great book called “Capitalism, Socialism and Democracy”. It says that Socialist countries end up so badly run that the people are forced to get extremely entrepreneurial and resourceful in order to get anything done. They become hard working and they seek opportunity. Eventually they overthrow the governments who want to run their lives in exchange for free markets.

It also says that Capitalist countries become so wealthy that the people become complacent. A small group of people figure out how wealth works and become massively rich while the majority are left feeling hard done to. It says that the people inevitably adopt a Socialistic mindset and elect governments that want to run their lives in place of the free markets.

Ironically, one of the very few things that should be “socialist” is medicine and health care. Who honestly wants some big company making money from sick people? But somehow it has become the flagship of capitalism in the USA.

Rather than all the FOX NEWS fluff about how medicine should be capitalist, now is the time for people to be screaming at the top of their voice about the privatisation of Automobiles, Insurance and Banking.

If the government had let these large companies fail, my guess is that some very clever entrepreneurs would have swooped in and picked up the pieces.

Rather than some fat number crunchers sitting around figuring out how they can move the mythical pieces of their empire around to squeeze out fictitious profits, smaller teams of entrepreneurs would pick up the pieces of these companies and figure out how to deliver more value.

Let the markets work, I say. That means accept the ups and the downs. The unknown is always scary but never as scary as you thought.