Huge Companies Outmuscle Mom-and-Pops in Flawed Paycheck Protection Program as Government Interventionism Fails Once Again
$243 million of funds in the Paycheck Protection Program have been sent to large, publicly traded companies
U.S. Senate on Tuesday passed a $484 billion coronavirus bill for small businesses, hospitals and coronavirus testing
Bailouts, stimulus packages, shutdowns, lockdowns etc., are doomed to failure as government interventionism worsens the situation.
It would require hundreds of thousands of pages to cover the subject thoroughly, and that might not do it justice, so we will discuss a recent event.
According to Money and Markets, “As part of the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, the government set aside $349 billion (which is now all gone) to distribute to small businesses of less than 500 employees. The intention was to help tiny mom-and-pop establishments keep employees on payroll and avoid layoffs.
Lobbying efforts by restaurant chains and other big businesses have resulted in loans being created for larger companies as well, though.
Morgan Stanley found at least $243 million of funds in the Paycheck Protection Program have been sent to large, publicly traded companies. Some of the worst offenders have market capitalizations greater than $100 million.”
The Mind-Boggling Figures
In all fairness, there are several ways to look at this. 0.00070% is the total amount of stimulus money huge companies captured from small businesses. The fact that $243 million suddenly seems negligible boggles the mind. Government interventionism has soared past the ridiculous into the realm of insanity.
Let’s look at it another way with the following figures.
50,000 small businesses = $4,860 each
40,000 small businesses = $6,075 each
30,000 small businesses = $8,100 each
20,000 small businesses = $12,150 each
10,000 small businesses = $24,300 each
5,000 small businesses = $48,600 each
It isn’t easy to calculate how many could have been saved and how many still would have failed. The core of the problem resides in destructive heavy-handed government interventionism that shut them down in the first place. Unemployment soars, causing the dreams of millions of men and women to vanish.
Fact: Government interventionism always worsens the situation. Its purpose is to transfer money from Main Street to the political and financial establishment.
Government Interventionism Causes Marketplace Annihilation
Let’s get to the point.
As long as people believe in government interventionism and support government interference in the marketplace, there is absolutely no hope for long-term economic recovery. All we can expect is crisis and chaos, which lead to the decimation of the individual’s life, liberty and property.
Claims seem to spring up everywhere that the Elite and its cronies purposely destroy the free enterprise system to institute a One World Government, New World Money and One World Religion. If that’s true, shutting down the economic system for an extended period of time could very well get the intended results.
Myth – Government Interventionism improves the workings of the marketplace.
We can put conspiracy theory aside and look at the chain of events in the life of a government intervention.
Altruists, world-improvers and do-gooders spot something on the marketplace that doesn’t conform to their faulty definition of morality or justice. They ignorantly claim this is another instance of capitalism’s failure, deciding they must interfere to improve the situation. In their role as politician or bureaucrat, they pass a law or create another regulation, stupidly turning mole holes into unscalable mountains.
Of course, sometime in the future, the misery mongers discover the situation has worsened. Since they lack the ability to utilize deductive reasoning, they never consider that their original intervention is the cause of the new undesirable situation. So, what do they do? Pass another law or create another regulation.
Obviously, their continued meddling with the free flow of the marketplace causes further economic deterioration. Instead of checking their premises and discovering where they went wrong, they embark on saddling the economy with another law or regulation—not realizing they are hammering another nail in the coffin of economic progress.
Now imagine thousands upon thousands of laws and regulations foisted on the marketplace. Is it any wonder that our economy is collapsing? Eventually, the cost of all the interference in the marketplace becomes prohibitive. The monkey wrenches placed in the marketplace eventually bring it to a halt.
The Blame Game
How do the interveners respond? They have the gall to blame laissez-faire capitalism for our economic problems—the problems they created. Are these politicians and bureaucrats just plain stupid…or downright dishonest? What is the definition of a swindle? Acts performed by members of the political and financial establishment.
Who are the true originators of conflict in society? Obviously, it’s the altruists, do-gooders, world-improvers, politicians and bureaucrats who create disharmony and chaos in our society through their heavy-handed use of government interventionism. If left to its own devices, the marketplace under a social system of laissez-faire (unhampered) capitalism creates mutual harmony—at least as much that is possible in the sphere of human action.
It is time we accept a timeless truth. Governments possess absolutely no means to help the marketplace; however, they possess the weapons to cause market annihilation. Government interventionism destroys hopes and dreams…and that’s the best we can say about it.
Conclusion
Government has only one legitimate function—to protect an individual’s life, liberty and property. Any government interference with voluntary exchanges violates individual rights—and is therefore criminal.
It’s time we stand up and defend our personal liberty and economic freedom. That’s what the Conservative Party USA dedicates its efforts to. We can only hope our supporters feel the same way.
We need supporters who stay strong, determined not to succumb to a Totalitarian (Technocracy) State. For your benefit, we offer you the free no-obligation eBook The Conservative Warrior’s Handbook. You will find plenty of intellectual and emotional “ammo” to help you during these difficult times.
In addition, you can access the Political Action Course.
For important information visit our website.
Robert Meyer
National Managing Editor
Conservative Party USA
