Unfortunately, America could now accurately be described as Bailout Nation. The premise of
free enterprise where businesses work diligently to get ahead or suffer the consequences of their
failures is being fundamentally destroyed.
• General Motors, AIG and Citigroup became the most well known recipients of bailouts
funds, collecting more than $300 billion. These companies are still largely owned by the
• The financial reform bill passed in 2010 institutionalizes bailouts by providing unlimited
access to Treasury funds to “wind down” firms that are deemed to be unstable.
• Progressives in Congress want to move bailouts beyond Wall Street and make small
businesses beholden to Washington for their lifeline as well. Congress is working to pass a
roughly $30 billion package for small businesses.
• Unlike the federal government, most state constitutions require balanced budgets.
However, instead of saving money in good times to prepare for difficult budget cycles,
most states spent nearly everything they collected. They successfully lobbied Capitol Hill
to bailout their poor decision making. Teachers unions and public employee unions are the
driving forces behind this form of bailout.
For more information on the bailouts, visit: