Basically, there are two sectors of the economy. One is productive. It is industry. People invest their money to make more money. This part of society creates jobs which create profit. Then, there is the unproductive sector of the economy. This is the government. It's like an empty pit. You throw money into it and nothing is produced. If it creates a few jobs, these jobs do not create products or profit. Because of this, the jobs necessarily continue to suck away money.
Picture these two sectors of the economy as a bright light and a black hole. They are necessarily at odds with one another. As the black hole of government grows, it devours the light of industry. It sucks in more money that could have been used to create more productive jobs. It sucks in the money that the good people of the country would have donated to charities. The sad thing is that as the people okay these sacrifices, they vote away their freedoms. The cause of the financial crisis is the black hole, not the bright light.
What's the point of this analogy? The point is that this black hole is self-perpetuating. Last year General Motors spent 13.1 million dollars on Washington lobbyists. You see, instead of investing their money into industry and production, they are pouring it into the black hole. They had a great return on their investment. They received a huge chunk of tax-payer dollars in exchange for their lobbying efforts. There's only one problem. The light cannot hold out against the black hole. The tax payer dollars come from those who produce. How long until they can produce no longer? And once the light goes out, who will sustain that black hole?
What is the only certainty in this situation? A whole chunk of bail out money (your money!) will be poured right back into Washington Lobbyist's pockets. It's too bad we can't eat or wear what lobbyists produce. They might be the only job left soon. I suppose we could eat politicians if we are starving. I bet they are terribly greasy.
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