‘cash for failing businesses,’ redux
You’d think that the best move for an entity straddled with as much debt as the United States would be to develop financial responsiblity, watch its spending habits, and cut back on unnecessary expenditures.
Enter the world of Obama:
Lennar (LEN), the Miami-based homebuilder that has been gushing red ink since its misguided bets on house prices went bad three years ago, on Thursday posted its first quarterly profit since 2007
But don’t congratulate Miller. The entire profit — and then some — came straight from taxpayers’ pockets.
The real driver of Lennar’s rebound, as the company acknowledged Thursday, was a $353 million tax gain that stems from a bit of congressional largesse in November.
Pumping money into these failing companies whether through straight-up bailouts or tax rebates is the last thing we should be doing. It is rewarding them for their failure and irresponsibility and unfairly distorting the free market in potentially destructive ways.
I can see theoretically why the Dems think this is a good idea; just like in every debate there are at least two sides or points of view. The thing is in this case, the Democrats and all the other Keynesian economists are simply wrong when it comes to their beliefs in government intervention in the economy and the markets, for so many reasons that it just staggers the mind.
Have it good,
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