A Great Economics Cartoon

Power Line posted a very funny cartoon that explains our current state of the US economy. What's sad is, for some companies this analogy fits perfectly. This is why the free market is so important and why people are against bailouts. Government should be trying its best to restore competition and free market. Monopolies, greedy executives, and poor standards are what the government should be fighting. Did you ever wonder why the economy is the way it is?

Remember the bailout that Bush created? What happened? Some companies that received the aid used the money to buy other companies--this way, the government is forced to give more bailouts because that company has even more employees to support.

This is a cancer on the economic system.

How do you stop cancer? You stop feeding those cells or you cut it off. Stop giving people incentives to fail such as subsidies and bailouts. Stop giving businesses a hard time through taxation but instead give them a hard time through competition.

I appreciate what Obama did--expecting a cap on executive officers who receives bailouts--the cap should be lower. I just find his cap unsatisfying. Even $500,000 is way too much. I think Obama needs to cut back on his own salary too--he's using our tax payer money for what? His house? A luxury car? Why does he need $400,000, previous presidents were fine with $200,000.

You must be for bailouts that keep the economy stable, but you must be against bailouts that encourage lazy behavior, greed, and failure. If there is to be a bailout, it should be incredibly regulated, with restrictions on what to use the money for (such as hiring employees or lending money to customers). A well regulated bailout could help the economy, a bad one could damage it incredibly.