Capitalism requires that failing companies be allowed to fail

Letters to the Editor

April 9, 2011 — American Corporations, having enjoyed their birth place and foundational health in a free capitalistic society, has now chosen to create global capabilities to avoid excess taxation from overblown and expensive central government. Citizens find the middle class is rapidly disappearing as [providing] subsistence to the lower classes is an increasing burden to the budget, and global investment is increasingly becoming better than local investment.

To make matters worse, our politicians have decided to violate the core principal of capitalism by not allowing failure through bankruptcy for the industries and banks that became over-leveraged and had improperly used derivatives and credit derivative swap (CDS) markets stupidly and idiotically.

Amazingly, our Federal Reserve and federal government destroyed the economy and our foundational underpinnings to save the miscreants and bail them out.

This is the true reason for our demise. Not Republican or Democratic belief. It was the lack of belief in the first principal of capitalism on which we were built: “Smaller more efficient operations would constantly replace burden bloated operations that became too weak and should never be saved by any source other than the laws of bankruptcy.” 

Matthew Burns (Stuart, Florida)

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