Wednesday, November 12, 2008

Boycott Firms that Receive Government Aid

The Wall Street Journal writes of another homeless corporation that is panhandling for $3.5 billion from the federal government: American Express. According to the Journal:

"The card issuer is the latest company not directly hit by the housing crisis to request cash from the federal government. While retailers, car companies and others hit by the slowdown in consumer spending haven't gotten the government money, financial firms of all kinds are getting federal bailouts."

There are about 130 million Americans who file tax returns but about one third of these pay no taxes, so the number of taxpayers is about 86 million. With a bailout of $750 billion, each taxpayer pays on average $8,720 to subsidize inept millionaire investment bankers, slothful auto executives and now, if they have their way, the people who bring you the American Express card.

I take it personally that my taxes are being raised to subsidize bozos at badly managed firms. I think that all Americans should just say no to any firm that receives a subsidy. The American car companies have been indifferent to the plight of their employees for decades. Now, they claim public subsidies. Investment bankers have been overpaid for decades. Now, they want average earners to subsidize their inept practices.

Boycott American Express. Boycott General Motors. Boycott the lot of them.

3 comments:

dan diamond said...

I will Boycott American Express Gladly! There is no Customer Loyalty with them. I never missed a payment,never late, Paid off my account often. American Express cut my Credit Limit by 90%.
They never even notified me!
BOYCOTT AMERICAN EXPRESS
DAN

kahn said...

Oh yes, after we give them 30 billion is the perfect time to boycott them.

So they can't pay back this loan

So they can't pay their employees

So a STATE goes under

Sorry, maybe we should give the American companies some consideration. Bitterness over the bailout will only serve as a self-fulfilling prophecy.

Mitchell Langbert said...

Dear Kahn--I guess you're not familiar with the concept of "sunk costs". The immoral payment of $30 billion to failing, mismanaged firms that produce goods that buyers do not want is not a reason to start to buy their goods.

As far as paying their employees, since 1910 more than 70% of the nation's largest firms have disappeared. You have never heard of the 100 largest firms in 1910. Their employees don't get paid. Are you upset about it? I mean really, wake up. Firms are supposed to go bankrupt when they do not produce value that exceeds their costs. Paying employees who destroy value is a sickness, a form of corruption that is destructive. It is done on the backs on Americans who do produce value. It is just a form of stealing.