Too Big To Fail, or Too Big To Function?

Is the US government "Too Big To Fail?"

As I see it, Too Big to Fail means "Too Big to Function" I think the term was coined to encompass a situation where poor decisions land an abnormally large group of people in a bad situation. The answer (at least so far) has been for the government to make certain economic concessions to benefit failed companies. With this type of system in place there is absolutely no incentive for the heads of business to asses risk because the government is already committed to propping the company up regardless of how the business is run. No free economic model can function without risk.

It seems, as was the case with General Motors, that there is a belief that once an entity becomes large enough it will heal itself. There is this belief, before the time of collapse, that "There's someone for that", "There's someone who can fix that", or "They wouldn't do something that would run us into the ground." Of course, this is all based on the belief that those at the top are competent and honest. In government, like in large businesses, people are only held accountable for a limited amount of time. There seems to be a culture of getting what you can while you're there, and letting the next guy deal with it.

Right now our government is operating in this manor. There is little to no risk for politicians who make poor economic decisions. Most people are either too far removed from the issue, or don't even hear about it. Thank the major legacy news outlets for that.

We are in the situation we are because the government has inserted itself in the economy to the extent that arbitrary government actions have a greater economic effect than organic market forces. Once this happens it is nearly impossible for the market to correct. But it seems that the government is quickly loosing its ability to prop up the system. The real crash is coming, until that happens there will be no "recovery."

The US is not too big to fail.

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