Will Obama Bail-Out Your Internet Marketing Business?

If you sink money into starting an Internet marketing, copywriting, or other small business, and you aren’t successful, will the government write a check to tide you over until you turn a profit? Not on your life.

So why should they do it for car manufacturers and banks? The answer, of course, is that they should not.

As Ed Konecnik points out in a letter to NYC’s Libertarian newspaper Serf City (vol. 5, no. 1, p. 2): “Success is a result of manuy factors. By eliminating the consequences of failure, we inspire and encourage mediocrity.”

Plus, a government bail-out of big business is just grossly unfair to small business. If we run our businesses poorly, we are out of business. Why should the same rules not apply to large corporations and financial institutions?

“In the real world, bankruptcy and failure are options that serve to cleanse and filter out incompetence,” writes Konecnik.


28 thoughts on “Will Obama Bail-Out Your Internet Marketing Business?

  • Chris: perhaps you think you are being cute. Care to be more specific and say what you want to say?

    Though of course I am pretty sure I get what you mean. And the problem with your argument is that MY tax dollars should not be spent to save businesses owned by other people. Yes, people will get hurt if GM goes under. But that’s what happens in free enterprise. If you want bailouts, I can give you a list of socialist nations you can move to.

  • I agree. The bailouts were good in premise, but bad ideas for the very reasons you’re saying. These big companies are not ran by idiots…er, I think they were properly educated anyway. A downturn or recession is a risk at any time and these long time established businesses should have planned ahead for such a thing, instead of crying.

    I understand why the bailouts happen. Just not sure giving them bring about the result they are going after.

    You can’t run as a socialist government without being one. “We’ll buy you out, but we can’t regulate you,” gives the companies too much leeway to be lazy about it. And yet, we don’t want government intervening…so what do we expect to happen?

    Someone said once to take that bailout money and give it straight to the citizens equally instead. Would that have done more good? Maybe not, but it would have been a more democratic thing to do.

    And I may be way off base here. Politics and government are two of my weakest topics.

  • Bailouts were NEVER a good idea. This whole process is simply delaying what every small business or web owner knows. Over spend, under sell, go out of business. We are pursing a policy of “not on my watch”.
    Then we could add the politics of who owns whom, and we could write for hours.
    Debt in excess of equity is the problem. The solution is bankruptcy. Its painful, but it will happen. Postponing the day of reckoning will only make the pain worse.

    Bob’s comments are spot on. We have two types of business in this country. Government supported and controlled–and the rest of us. You can’t compete against a printing press, especially when the printer has an endless supply of paper and ink.

  • Thanks, Brandon. I virtually NEVER talk about politics — in this blog or anywhere else. But this seemed appropriate. If you and I as little entrepreneurs need to take risk with no assurances of success, big companies should be required to live by the same rules.

  • The problem with this logic is the unspoken assumption that, if you fail, only your managers and employees are affected. For most businesses, that’s true. In the highly interconnected finance system the developed nations have now, that’s nowhere near true.
    On 15 September, 2008, Lehman Brothers filed Chapter 11 and went out of business. This meant that companies who were expecting payments from Lehman weren’t going to get them. Firms who didn’t deal with Lehman, but who did deal with firms that had dealt with Lehman, realized that they were now exposed, and the system had a chance to see how close one single bankruptcy came to knocking down a long line of dominos. Once that started happening, we’d see mutual funds taking big losses and Main Street businesses losing lines of credit. After Lehman, there was no serious discussion of letting another major bank go Chapter 11.
    I expect to infuriate some folks here, but I don’t think we’ll ever be rid of firms that get “too big to fail” … that is, firms whose failure would cause way too much collateral damage. The loans and taxpayer equity positions are ugly, but they’re probably the least bad alternative.

  • Philip: monopolies have long been outlawed. Should the U.S. similarly prevent companies from threatening American economic stability by placing a limit on company size so they do not become “too big to fail”?

  • Bob: I don’t see it working. Since finance in the developed world is global, if you place a limit on the size of US financial firms, you’ll just drive money to European or Asian banks. Then some of them get too big to fail, and all you’ve done is move the problem.
    Boy, we’re a long way away from writing copy.

  • There’s a very good indication that the Obama Bailout plan is working. According to news last June 10, Bailout plan turned a profit” of $1.8 billion in interest payments on the first set of bank loans that were repaid.

  • Nice Post!

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  • Great article. I think peopel just have to be persistent to last until success is apparent. My form of internet marketing is creating short videos designed to catch attention. Then I lead these viewers back to a Free offer on my site. My traffic is targeted because I post at http://www.Adwido.com and they help target specific keywords and it’s free to get an account. This seems to work for me.

  • It is a kind of on-line marketing by creating short articles relevant to your organization theme or sector. Following you have created your very own articles, you will be ready to make them freely obtainable for distribution and publication in the marketplace. Each and every article consists of a “reference box” or “bio box” and “by-line” like the authors references and get in touch with details. If you can publish properly-written posts, then you will have the prospective of acquiring credibility in your sector, as well as your viewers.

  • Hmm it looks like your website ate my first comment (it was extremely long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I’m still new to everything. Do you have any suggestions for novice blog writers? I’d definitely appreciate it.

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