EXCLUSIVE: AFF’s “Free Market Recovery Package” released

American Future Fund believes that the $700-billion bailout package fails to identify and act upon the free market ideals on which our economy was founded, and upon which it still operates to this day. AFF opposes the bailout that currently sits before Congress, and instead believes the below “Free Market Recovery Package” contains the measures lawmakers need to enact in order for the United States to weather the impending financial storm.

1. Raise the FDIC banking insurance cap to $1 million

   The current financial crisis rests on more than just what individuals have in their savings accounts – where middle and lower class families will be protected under the current $100,000 FDIC insurance cap that is in place. By raising the cap to $1 million, government will ensure that small businesses – many of whom have cash deposits in excess of $100,000 – will be allowed to operate without the worry of losing precious resources.

2. Businesses that make bad decisions should be allowed to fail in the free market

   The free market economy upon which this nation was founded and still operates under thrives on risks and subsequent rewards. Without risk, there is no reward. Without failure, however, there is no risk. If a company or business makes a bad decision, it should not be rewarded with a distribution of our tax dollars, and instead should be allowed to fail.

3. Government should not be the first to bail out failed businesses

   In the case of this bailout, many failed companies are looking toward the government to bail out their failures. Instead, these failed businesses should sell their assets in the private free market. There are potential buyers – but these businesses don’t like the prices. Instead, they would rather use your tax dollars. There should first be a substantial period of time where private enterprise is afforded the opportunity to interject and purchase failed companies. There is always a price for any business – successful or not, but it should not be the government’s practice to determine that price tag.

4. The Federal Reserve should insure liquidity and ensure there is enough cash available for purchase of capital goods

   America’s small businesses and entrepreneurs should feel safe knowing there will be liquidity in the marketplace. The Federal Reserve should act to ensure there is adequate liquidity in the marketplace so good businesses are able to maintain access to their credit and not be harmed by the failings of other businesses that have made poor business decisions.

5. Small rescues for certain economic sectors, being used only as a last resort, are still a vital option for the economy

   AFF recognizes that occasionally, the government will be called upon for a one-time rescue of certain segments of the American economy. For example, this may include the automakers, AIG and others. In a small way, the government can work efficiently and effectively. However, there is no need for a blanket, $700-billion at the hands of unelected U.S. bureaucrats to do with what they please. With any rescue, there should be strict legislative oversight and approval.

6. If the government’s money is to be used for bailouts, then salary caps must be set

   The highest paid government employee is the United States President, at $400,000 per year. If U.S. taxpayers see fit to pay the leader of the free world this amount, they certainly should not be on the hook for extravagant salary packages for failed CEOs in private business. Further, the same should apply in situations such as that of Lehman Bros., where it was discovered that a special $2.5 billion account was been set aside for staff bonuses, despite that company’s bankruptcy.

7. No more “golden parachute” severance packages for company executives who publicly lie about the financial standing of their institution

   If a company or its representative is in front of the public, positively testifying to the stability of its finances or misrepresenting the security of its future, AFF believes that these same failed executives should not be rewarded upon a U.S. taxpayer bailout.