The Problem of Government Expansion

By: Laura Adelmann



As General Motors entered bankruptcy to trim its girth in the hope that it will survive to build happy environmentally friendly cars that no one wants, President Obama claimed 60% of the shares of GM stock for the government. Obama described this move as temporary and expressed, yet again, his reluctance to insert the government into the day to day decision making of America’s automotive industry. But, is this reluctance sincere, or the first step in Obama’s plan to grow government’s control over our lives?

First they came for the banks. Banks were forced to take bailout money and all the strings those came with, namely the government’s desire to control wages and determine bonuses for executives. Banks who received bailout funds are now limited in their ability to attract talent with financial incentives.

Then they promised stimulus, but it came with conditions. States who accept stimulus funds have to agree to the conditions that are wedded to those funds. For example, California is facing a budget crisis and needs to make deep cuts after a ballot measure to cut the deficit failed, but if they cut too deeply, they can lose access to stimulus funds they desperately need. So, they have to spend money they don’t have to get money?

Government Motors? Will Obama be hands off as he claims? Doubtful. First he fired GM CEO Rick Wagoner and replaced him with Fritz Henderson. Then Obama’s team pushed GM to drop a few brands. Finally, they pushed them into bankruptcy. Whether this was the best decision for GM (and I believe this should have happened earlier and without wasted bailout funds and attempts to salvage the company) or not, this all came at the behest of our leader. Obama forced bond holders to take huge losses, but required minimal bending from the United Auto Workers. Obama states that GM will be governed by its board of directors, not by him or by Congress. However, with Obama’s team selecting all but two of the new members of the board of directors the difference is negligible at best. Obama’s hands-off approach also seems to include a command to produce environmentally friendly, low emission compact cars. No, he’s not involved at all.

Finally, Obama is now rubbing his hands together at the prospect of going into the healthcare business. After all these successful maneuvers to bloat government, why not one more? Obama will likely build on Medicare, which is a wasteful mess, creating a similar program for those under 65 years who do not qualify for Medicaid or SCHIP and do not have private insurance (or are not satisfied with their coverage). Launching the government further into the insurance business creates a new entitlement which will inevitably become permanent and will surely grow.

President Obama continues to deny that he wants government to run the banks, run GM, run healthcare, but his actions speak louder than his words. As government expands, so does it’s control over our lives, breeding dependence and wasteful spending. Criticism of Obama is coming from the Right as expected, but as time passes and these temporary interventions become permanent, hopefully Americans will remember their small government roots and call for the government to get out of our lives and our businesses.

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Are We Headed Toward Socialism or Are We Already There?

There are many people, mostly on the right, that have felt that President Obama would take this country in the direction of socialism. For those liberals who enjoy visiting my site, I am sure you are laughing at that statement. However, I would like for you to consider a few things.

This past election season made it very apparent that although we do not have state owned television stations, they are now state run. The press are no longer objective questioners of the government looking out for the people. Instead they are a cheer leading section for the President and the Democratic party.

As the financial "crisis" loomed, even President Bush threw free market enterprise out the window. President Obama looks to continue with that direction. The next step with the TARP funds is a gigantic leap towards nationalizing our banking system. When you begin to interfere with how private companies operate their businesses, you are making a choice away from the free market system and heading towards socialism.

Senator Debbie Stabenow (D-MI) was interviewed this past week and stated that the so-called Fairness Doctrine was being discussed and would most certainly make a return. She stated that radio stations must be held accountable for their content. Again, this is a private industry that is being told what they can and cannot share with their public audience.

Health care reform has been a project of the Democratic party for generations. It appears that this may have a chance at becoming a reality. No one disagrees that we should help people receive affordable health care coverage, but it's how we chose to make that happen that divides us. Within the new stimulus package, it appears that some of the first steps toward nationalized health care are already in the works.

Finally, one last thought to consider. In the state of Oregon, lawmakers are struggling to meet budgets. Instead of looking to cut costs, there is actually a bill in the works that would tax drivers on how many miles they drive. How exactly would the government know how far you drive? The state government would require that you install a GPS device on your car that would tell the gas pump how many miles you have driven and tax you on the amount. The government would actually have a way to track your every move.

If state run television. nationalize banking, nationalized health care, silencing the opposition, and tracking it's citizens isn't socialism, then you would also enjoy living in China. I hear they are hiring.