Corporate Socialism: A Bi-Partisan Tradition

In a shameless effort to pander to the Rust-Belt battleground states, both Mr. McCain and Mr. Obama have endorsed a 50-Billion dollar loan package to the beleaguered Big 3 Automakers (though proponents say it will "only" cost taxpayers 8 billion). 

Why is the government interfering in the functioning of the market? Is it because the Big 3 were the victims of a unforeseeable natural disaster? Were their plants destroyed in terrorist attacks? Did they divert their resources to build profitless war supplies for the government?

No. Simply put, they made countless poor choices which led to near-bankruptcy, and are now whining to the government for help. 

Toyota and Honda acted like responsible companies, evaluated market trends along with global economic, supply and political data, and enacted sound business strategies. They also ran disciplined corporate budgets.

The Big 3 lacked foresight, gambled on the price of oil staying inconceivably low forever, and generally blew through money like children through Halloween candy. In simple terms, they ran their business poorly. 

The market, as it is apt to do, rewarded the diligent and punished the sloppy. Toyota and Honda are sitting on debt-free billions, and the Big 3 are drowning in red. 

So what do the Big 3 propose to fix their dreadful condition? A commitment to financial austerity, bold new designs and a redesigned product line, with streamlined efficiency?

No. They want Washington to rig the market so they don't have to be responsible for their actions. They want the best of both worlds, the profit of the market, and the safety net of socialism.

Sadly, with the backing of the current government, as well as both potential successors, they seem likely to get it. 

Source: http://money.cnn.com/2008/09/04/news/economy/automakers_Congress/index.htm?postversion=2008090416