The auto execitives have declared that “there is no Plan B” if government doesn’t come to their aid and that their failure “could spark a depression.” If they accept a a handout under such desperate circumstances, they will have to be accountable to chairman Nancy Pelosi, who is demanding that they present Congress with “a new business model, a new business plan.” Right now, corporate executives are systematically aiding and abedding the destruction of the free market. When they cannot manage themselves and need government to step in, they open the door for more regulation and interference in the economy, while the rest of us pick up the tab.
The day after the $30 billion Bear Stearns bailout — which now seems quaint — I wrote:
The extraordinary intrusion into the free market over the past several days by the Federal Reserve Board under Chairman Ben Bernanke should send shudders down the spines of conservatives everywhere….
The Fed’s actions will also give advocates of big government another argument to use against free marketers. If taxpayers end up footing the bill when Wall Street banks get into trouble, they will ask, why shouldn’t the government be able to impose more regulations on them preemptively?
That’s exactly what is happening, only on an increasingly broader scale than I envisioned.