Another day, another $3.8 billion

The U.S. Treasury just gave another $3.8 billion to GMAC, which hopes to one day make a profit again. For those of you following at home, this latest infusion is on top of $12.5 billion distributed previously, for a grand total of $16.3 billion.

I know there are a lot of people who would defend this latest expenditure as being “necessary”. Here’s a question for those people: What about small businesses and medium-sized companies that have had to close their doors? Where’s their bailout?

Now, I’m not suggesting that small businesses and medium-sized companies deserve any such assistance, because they don’t. What I am trying to point out is the propensity of the last two administrations to pick winners and losers, rather than allowing the market to do its job. This practice spits in the face of our economic system, a system upon which this country was built.

Here’s one last point to ponder: When a corporation is bailed-out, aren’t you essentially hurting other businesses in that industry? By having a government with deep pockets prop up a competitor, we essentially have tax payers taking sides and competing against other companies. That causes us to have state-run companies propped up by the government, versus privately owned companies? Who do you think will win that competition?