Puppet strings

Sen. John Kerry (D-Mass.) introduced Senate Bill 463 on Feb. 24. The legislation would prohibit any company receiving TARP (bailout) money from hosting, sponsoring or paying for any entertainment or holiday events during the calendar year in which they receive the funds or the following year.

Lawmakers have introduced other bills that would allow the government to oversee or limit expenditures, executive pay and other business decisions of companies receiving TARP money.

Herein lies the insidiousness of bailouts. I understand the argument that because companies accepted taxpayer money, the taxpayer via the government should exercise some control over those companies. But allowing the government to intervene in business decisions makes no sense.

What does John Kerry know about running an auto company, or an insurance business? I’m not here to defend corporate spending, but at times what we view as wasteful from the sidelines may have a valid business purpose. For instance, holiday parties can serve to improve the morale of employees. Parties, trips and awards for sales reps can boost productivity.

Government bureaucrats simply can’t know enough about the particulars of any given business to make sound business decisions. Instead they dictate policies based on political considerations and public perception. For instance, members of Congress rail against the use of corporate jets when in reality the use of private planes save countless hours of productivity for executives.

TARP has simply become a tool to increase governmental power. It provides a doorway for greater control over private businesses. It decreases liberty. With the precedent set, I guarantee government agents will find even more justifications for interfering in private enterprise.

The CEOs who accepted TARP money dug their own graves. The ran to the public till with their hands out, and now they find themselves suffering the consequences of petty, small minded politicians interfering in their business.

Interestingly, no company infused with government money has improved its position in recent months. GM is talking bankruptcy. AGI has its grubby paws out looking for more of my money.

They got what they deserve – a lifeline that amounts to nothing more than puppet strings.

Others should beware. The injection of government into the private sector only leads to increased governmental power and a loss of citizen liberty.

"Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master." -George Washington.