The Bailout of Car Companies

By challenging me to this debate my opponent has agreed to follow the new TOS as listed and explained in this forum thread: . http://www.debate.org... I would like to thank my opponent for such a relevant and current topic. I surmise from my opponents introductory round that the resolution at which he is attempting to resolve is this: 1. Our country (system) has operated under the laizze faire (let do) economic system for the past 200 years. 2. By bailing out car companies we are not capitalist. 3. Laissez-Faire type capitalism is superior to all other forms of government. [Definitions] Laizze Faire - The government does not interfere in the economic system. . http://www.google.com... capitalist mixed economy - is the main capitalistic system, where the state intervenes in market activity and provides some services. >>(Scott, John (2005). Industrialism: A Dictionary of Sociology. Oxford University Press. )<< 1. First off I would like to rebut my opponent's first main point that our country has operated under the laizze faire economic system for the past two hundred years. As should be obvious to the bulk of economists and anyone with a clear understanding of economics, our country has not operated under a Laissez-Faire economic system for the past two hundred years. Numerous examples include The First Bank of the United States (1791) and the Second Bank of the United States (1816) as well as the Tariff of 1828. All of which do not need sources as they are historically known facts of establishment. The legality of the Bank was upheld in the U. S. Supreme Court case McCulloch v. Maryland 17 U. S. 316 (1818) >>(Report on the Bank, in Syrett, ed. , Papers, 7:326-28)<< For further proof that the United States has not operated under the Laissez-Faire economic system observe the following: The Pacific Railway Acts provided the development of the First Transcontinental Railroad (see the McKinley Tariff and Dingley Tariff). Moreover, with the enactment of the Interstate Commerce Act of 1887, the Sherman Anti-trust Act. 2. Laissez-Faire economic system is a type of capitalism, however it is not equivalent of capitalism. All things capitalist are not laissez faire. Example: A poodle is a type of dog but all dogs aren't poodles. In fact, a capitalistic mixed economy is the main type of capitalism present today. And it has been existent in the United States for the past two hundred years. 3. First, Laissez-Faire economic system is not a form of government, it is an economic form. Secondly there is a larger importance beyond bailing out companies especially financial institutions than just saving jobs. This is to restore consumer confidence in the banking system. If every average Joe were to withdraw there money from banks thinking the entire industry was going up in flames and they would lose their money. More banks and industries that were otherwise excellent productive financial institutions would fail for no other reason than just sheer panic from the uneducated masses. As you can see this would cause severe devastation to our economy. In short, shoring up a few businesses saves many businesses. It isn't a question of whether things would return to normal under a Laissez-Faire economic system, but how fast things would take to improve. By restoring consumer confidence (which is 3/4 of all economic activity) we are essentially speeding up the recovery. Example: Think of the current situation as a fire in a forest. If a small group of trees are burning reason dictates to put them out. While letting the forest burn would ultimately recover. Its about how fast the forest would recover. While I have successfully provided refutations to my opponents resolution, I would like to remind voters and my opponent that it is he that must prove all three of his implied resolutions that he clearly implied in his resolution.