An excerpt from my economics lesson that seemed timely.
…government “aid” to business is sometimes as much to be feared as government hostility. This applies as much to government subsidies as to government loans. The government never lends or gives anything to business that it does not take away from business. One often hears New Dealers and other statists boast about the way government “bailed business out” with the Reconstruction Finance Corporation, the Home Owners Loan Corporation and other government agencies in 1932 and later. But the government can give no financial help to business that it does not first or finally take from business. The government’s funds all come from taxes. Even the much vaunted “government credit” rests on the assumption that its loans will ultimately be repaid out of the proceeds of taxes. When the government makes loans or subsidies to business, what it does is to tax successful private business in order to support unsuccessful private business. In the long run it does not sound like a paying proposition from the standpoint of the country as a whole. And experience has shown that it isn’t.
I thought that was such a good point that the governement cannot give financial help on its own. The government does not earn money. Its money all comes from taxes–from US. And any of our money that the governement uses to help stuggling, businesses, struggling farmers, and struggling would-be homeowners is money that cannot be used by the people who actually have good credit or are running their business well and showing a profit. The government uses our money for questionable loans that no sensible lender would risk.