by Marlin Bressi

Created on: December 18, 2008   Last Updated: January 13, 2009

Prior to 2008, the term "bailout" brought to mind fighter pilots ejecting from their aircraft. Today, it has become a buzzword with entirely new connotations; it is the word used to describe a fundamentally flawed economic recovery plan. Coincidentally, in both cases, a bailout results in an inevitable crash and burn. Whether applied to Wall Street or Detroit, a bailout will result in a crisis, and may ultimately lead to our nation's economic undoing. Here are ten reasons why the government's bailout plans are more than just a mistake; they are an American tragedy.

1. Retardation of Progress. When American auto manufacturers stated that they were in dire financial straits, it came as no suprise. For decades, the public has been offered vehicles of inferior quality. Combined with a spike in fuel costs over the summer, it didn't take a financial expert to realize that Detroit was in serious trouble. Unfortunately, bailing out auto manufacturers only treats a symptom, while the disease continues to flourish. This disease is, quite simply, lack of progress. Imagine if the goverment had bailed out candle manufacturers in the turn of the century, or the makers of horse-drawn buggies. We would not have had the impetus to invent the light bulb or the automobile. If we allow the automobile industry to fail, we are opening the doors to invention and progress.

2. Opening the Floodgates. When the government decided to bail out financial institutions, they opened the door to future bailouts for struggling industries. After the auto manufacturers, who will be next? Some speculate that it could be the newspaper industry, since subscription rates have plummeted in recent years. Sadly, none of these industries need a bailout as much as they need to change their business model.

3. Acceptance of Mediocrity. Without government handouts, the auto industry would have no other choice but to find ways of building better cars. We all need to drive, so give us something worth driving. As long as the Big Three continues to flood the market with inferior products, they will continue to suffer.

4. Setting a Bad Example. Has anyone stopped to think about what kind of message these government bailouts are sending to our children? We try to teach our kids to work hard and to give their best, while at the same time our government is sending a message that it's perfectly acceptable to make irresponsible decisions, because there will be no consequences for irresponsibility.

5. Extinction of Capitalism.

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