The student news site of El Camino College

El Camino College The Union

The student news site of El Camino College

El Camino College The Union

The student news site of El Camino College

El Camino College The Union

Commentary: Bailing out is only a temporary quick-fix

With the $700 billion bailout plan, it has been proven that Americans are not alone when it comes to the struggle to make ends meet; big business is suffering the same strain on their wallets.

While the billions of dollars being spent to bring these companies out of this rut will seemingly be able to push them along again, it is only one tiny, and perhaps fatal, step in mending America ‘s ailing economy.

The economy, in fact, is not entirely to blame, either.

Competition may be a staple in the capitalistic market of the U.S. , but overzealous competition and risky procedures have ultimately led to some of the biggest names in banks and insurances to stab themselves in the foot.

It was not their place to push forward the opportunity for more money by carelessly throwing out their own to promote their own growth or dote on those with a bad history of paying off loans.

On another note, these problems already have their roots deep within the companies’ tangled web of sticky business.

The bailout may work well at first, but will only serve as patchwork, smoothing over the general problem until the more troublesome issues are exposed and dealt with.

Getting such a hefty amount of money will be no walk in the park, considering America is already in debt as it is.

Since expending such a handsome amount is the government’s doing, and it is indeed a rescue act, there will have to be measures to bring back the revenue being lost.

After all, the government cannot exactly pay itself back all the money it is putting out.

Eventually, the people will have to help pay off this immense loan by means of taxes, and it will obviously take a while to bring all that revenue back in.

This is unjust in the sense that the American people should not have to pay for blunders made by businesses in their attempt to be greedy.

That’s not to say the economy should be allowed to become stagnant and slowly plummet into a new Depression, but perhaps the government should have taken measures to revive and stimulate the economy so consumers could put more money into it and businesses could get more out of it.

The bailout may fill the cracks, but if more serious measures aren’t taken, America will be in this position time and time again, with more and more money needed to mend the problem at hand.

America cannot continue to pump money into these companies every time there is a crisis because it is not enough to solve the real issues behind the economic unrest.

Before money is given left and right to try to keep things from tumbling, the American people must be taken into consideration as well.

Americans are overspending just as much as these companies and that is partly the reason things went into such disarray.

What must be targeted is the economy as a whole, including its consumers, and a method must be concocted to keep taxes reasonable, all things considered, and save businesses from any more major failure.

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