The narrative in the media has the AIG story all wrong. We read about AIG bonuses and are outraged. We read about how taxpayer money was spent at AIG and are outraged. However, let’s not forget the people with the keys to the safe. It is those who rushed to come up with TARP and did not come up with an efficient method to ensure how the funds were to be used. The true culprits are the politicians in Washington. When you give money to a company too big to fail and too incompetent to exist, then provide them with free money, what do you think they will do? Did you think that suddenly a culture of responsibility would bloom over night? The big point is that our government is a poor and inefficient keeper of taxpayer money.
For those of you who are excited about government health care and all manner of social programs beware like government college education. AIG is just one of a long list of wasteful examples. Already stimulus money to be use for infrastructure is being wasted to fill state budget gaps (*cough* NY *cough* David Patterson). Who is surprised? Did you think embarrassment from Obama would rein in the state members of his own party? What arrogance.
If you disagree with me, then please name me a government program that works? We spend more per student than any other nation, yet our students are not the best (could it be that parents have more of a role in education than any amount of money that can be spent?). Social security is on life support and will cost younger generations if not repaired (Could this be from the inability of congress to plan for the possibility that successive generations may not continue to grow in population?) AMT, which was to ensure that the rich paid their fair share, nearly soaked millions of the middle class (Could it be that politicians are more concerned about raising tax revenue?).
I will agree that reforms need to be made and some programs should exist, but let’s not let the spotlight fall solely to the addicts, while we let the pushers off the hook. Shame on Obama for pointing the finger at AIG and not admitting the failure of the Treasury Department who was responsible for oversight (They had a blank check from congress if you remember). Shame on congress for pointing the finger at AIG and not admitting that they were the enablers. This type of reckless oversight of tax payer money will continue so long as we let the guilty shift all the blame to their cohorts.