Resolved: Federal government bailouts of 3
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- SECTION 2: RESOLUTIONAL ANALYSIS
D. Negative StrategyMy basic advice for the Negative is to appeal to the “angry taxpayer” in your judge! No one likes paying taxes. When the average taxpayer sees the federal government handing out billions of the money, they get angry. One needs only to consider a host of social problems within the scope of a sluggish economy. William John Cox, a retired supervising prosecutor for the State Bar of California, explains such frustration, Who Loses? The ordinary, hard-working voters, who were opposed to the bailout, and their children and grandchildren, will be the ones who will ultimately have to repay, with compound interest, the money that will have to be borrowed to give away to Wall Street bankers. The bailout was "sweetened" in the Senate by another $110 billion in tax relief and renewable energy incentives to get enough House votes for passage; however, only the temporary one-year slowdown of the Alternative Minimum Tax offered any succor to the middle-class workers affected by it.26 Others look at the financial bailout as a reward for bad business practices. Since they are to blame for their own economic hardships, why should the taxpayers reward them with a lifeline? This is particularly the case with the auto bailout. David Holcberg of the Ayn Rand Institute calls this unjust. Any government bailout of either borrowers or lenders would have to be financed with money taxed from other people—and that would be utterly unjust. Lenders knew—or should have known—the risks of making loans to individuals who had shaky finances and deserved little, if any, credit. And borrowers knew—or should have known—the risks of taking loans that they might not be able to repay. In either case, lenders and borrowers are responsible for their decisions and should bear the consequences of their mistakes (or misfortunes) on their own. Why should responsible, hard-working individuals who pay their mortgages and rents on time, or who already paid for their homes, be forced to pay also for the mortgage of others who defaulted on their obligations?27 Given these concerns, Negatives can opt for two basic approaches to the resolution: go heads up on the economy and how bailouts affect it, or a retreat from pragmatism to the land of pure philosophy. Both approaches have merit. The first approach seems the more difficult. Most economic experts think the financial bailout of lending institutions was a short-term necessity that infused the necessary credit into markets. However, there is nothing close to a consensus in terms of the proposed auto industry bailout. Despite being on what seems like the wrong side of the economy debate, there are a few ways to undercut the Affirmative assumptions. Initially, one could take issue with the way in which this idea was “sold” to the public. When the FED and Treasury Secretary proposed the Wall Street bailout, they used almost apocalyptic terminology. Many Affirmatives will follow the same tactic, especially when a lot of there evidence will quote these officials. Anthony Fisher deconstructs this rhetoric of fear, Economic Depression is here! The massive wall-street crisis will destroy middle America! The politicians, pundits and print media are spewing fear and negativity at incredible levels. I am going to tell you something that might surprise you. They are wrong, you have little to fear, this is not the great depression. An example I have found repeated over and over in recent months, the print and television media spread stories with fear mongering words. This is the stuff that used to be relegated to tabloids, but not anymore.28 Former Presidential candidate Ron Paul, U.S. Representative-Texas, has expressed that the same rhetoric will be used to justify future bailouts in a cycle of economic manipulation of the public.29 Other commentators and economists use this logic to argue that the bailout would only delay an inevitable economic crash unless we reform the fundamentals of the economy. If the Negative wins that bailouts are net worse for the economy, they can beat the Affirmative even through a utilitarian calculus. The McGee article (cited in evidence and the bibliography) will be helpful here. Generally speaking, the better strategy would be to ignore the economic consequences all together. This happens first on the criteria debate. It is essential that Negatives win that utilitarian approaches should not determine what is just. The very word carries connotations of ethics and values, not the same economic rationality that got us here in the first place. Instead, we should take a step back and decide a just approach. Libertarianism seems appropriate for this option. If the Negative can win that the tax money used for bailouts itself is unjust, then it becomes a prior question to considering the consequences. The sample Negative (included) takes a similar approach in arguing that using taxpayer funds to bail out corporations is an abrogation of democracy and the government’s obligation to the people. This depends on how you argue that obligation. If, in a democracy, the government has an obligation to protect the general welfare of the public, then the debate could easily revert back to a discussion of consequences. On the other hand, if the debate centers around the government being responsive to the will of the people, the there is solid ground for the Negative. SECTION 2: RESOLUTIONAL ANALYSISFederal Government INTERPRETATION: THE NATIONAL GOVERNMENT Collins Essential English Dictionary, 2nd Edition, 2006. “Federal Government.” Accessed 12-9-08. n. the national government of a federated state, such as that of Canada located in Ottawa or of Australia in Canberra INTERPRETATION: THE CENTRAL GOVERNMENT WordNet.com, 2008. “Federal government.” n. federal government: a government with strong central powers
The Online Encyclopedia and Dictionary. “Federal government of the United States.” Fact-Archive.com. Accessed 12-9-08. The government of the United States, established by the U.S. Constitution, is a federal republic of 50 U.S. states, the District of Columbia, and many insular areas, the largest of which are Puerto Rico, the U.S. Virgin Islands, American Samoa, and Guam. The basic laws of the United States are set down in major federal legislation, such as the U.S. Code. The federal government consists of executive, legislative, and judicial branches. The federal legal system is based on statutory law, while most state and territorial law is based on English common law, with the exception of Louisiana (based on the Napoleonic Code due to its time as a French colony) and Puerto Rico (based on Spanish law). The United States accepts compulsory International Court of Justice jurisdiction, with many reservations. DISCUSSION: There is not much discussion on the phrase “federal government”. Although the individual states bail out companies, they do not contribute to large corporate bailouts. bailouts INTERPRETATION: FINANCIAL AID TO BUSINESSES QUIZLET, February 22, 2008. “PBS Online Newshour Vocabulary: News Summary.” Brainflair, Inc. Accessed 12-9-08. n. bailout: an act of giving financial assistance to a failing business
n. bailout: a rescue from financial distress INTERPRETATION: GENERALLY A RESCUE FROM ECONOMIC DISTRESS Stephanie Reitz, Staff Writer for the Associated Press, November 26, 2008. “'Bailout' is top word for 2008, says online dictionary.” The Akron Beacon Journal’s Ohio.com. Accessed 12-9-08. So how does Merriam-Webster define ''bailout''? As ''a rescue from financial distress.'' But Morse says those who looked it up also seemed to want to know whether it had negative nuances or suggested irresponsibility or blame. ''People seem to have a general understanding of the word 'bailout,' but they seem to want to better understand its application, any connotations it may have and shades of meaning,'' he said.
BusinessDictionary.com, 2008. “Bailout.” n. bailout: To provide emergency financial help to keep a firm afloat
TheFreeDictionary.com, 2008. “Bailout.” bailout: A rescue from financial difficulties: corporate bailouts. DISCUSSION: There has been much discussion on corporate bailouts over the last six months. The most contextual interpretation would assume something like the $700 billion bailout package Congress passed for Wall Street financial corporations. Even this lacks clarity. Many critics argue that a lack of oversight, clear directions, and unprecedented authority vested in the Treasury. Regardless, “bailout” will refer to some type of financial assistance given to corporations in distress. major INTERPRETATION: OF GREAT IMPORTANCE WordNet.com, 2008. “Major.” adj. major: of greater importance or stature or rank; "a major artist"; "a major role"; "major highways"
Merriam Webster’s Online Dictionary, 2008. “Major.” adj. major: greater in dignity, rank, importance, or interest INTERPRETATION: MORE IMPORTANT Dictionary.com, 2008. “Major.” adj. major: greater in size, extent, or importance: the major part of the town; great, as in rank or importance: a major political issue; a major artist.
A corporation is the name used in the United States for a business association established by one or more people who later sell shares in the corporation to investors; in a partnership, there are one or more owners who share jointly in the profits, liability INTERPRETATION: THREE DISTINCTION LEGAL CHARACTERISTICS BusinessDictionary.com, 2008. “Corporation.” n. corporation: Firm that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners. Corporations are owned by their stockholders (shareholders) who share in profits and losses generated through the firm's operations, and have three distinct characteristics (1) Legal existence: a firm can (like a person) buy, sell, own, enter into a contract, and sue other persons and firms, and be sued by them. It can do good and be rewarded, and can commit offence and be punished. (2) Limited liability: a firm and its owners are limited in their liability to the creditors and other obligors only up to the resources of the firm, unless the owners give personal-guaranties. (3) Continuity of existence: a firm can live beyond the life spans and capacity of its owners, because its ownership can be transferred through a sale or gift of shares.
n. corporation: A body that is granted a charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of its members. INTERPRETATION: BUSINESS ORGANIZATION—LIMITED LIABILITY AND STOCKS InvestorWords.com, 2008. “Corporation.” The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern. The process of becoming a corporation, call incorporation, gives the company separate legal standing from its owners and protects those owners from being personally liable in the event that the company is sued (a condition known as limited liability). Incorporation also provides companies with a more flexible way to manage their ownership structure. In addition, there are different tax implications for corporations, although these can be both advantageous and disadvantageous. In these respects, corporations differ from sole proprietorships and limited partnerships.
Merriam Webster’s Online Dictionary, 2008. “Are.” Accessed 12-9-08. present 2d singular or present plural of BE INTERPRETATION: CONTINUING ACTION The American Heritage Dictionary of the English Language, Fourth Edition. 2004. Dictionary.com. <http://dictionary.reference.com/browse/are>. Accessed 12-10-08. Used with the present participle of a verb to express a continuing action: We are working to improve housing conditions. INTERPRETATION: PRESENT TENSE Cambridge Dictionary of American English, 2007. Accessed 12-9-08. present simple of be, used with you/we/they; Are you hungry? They are late. DISCUSSION: One can interpret the role of “are” two ways in the context of this resolution. The distinction would center around an ongoing, or continuous, action, or the present tense, referring only to current bailouts. Negatives may demand Affirmatives defend either bailouts in general (ongoing) or the financial markets bailout or even the impending auto industry bailout. just INTERPRETATION: GUIDED BY TRUTH AND JUSTICE Dictionary.com, 2008. “Just.” adj. just: guided by truth, reason, justice, and fairness: We hope to be just in our understanding of such difficult situations; done or made according to principle; equitable; proper: a just reply. based on right; rightful; lawful: a just claim
adj. just: Honorable and fair in one's dealings and actions: a just ruler. See Synonyms at fair1.; Consistent with what is morally right; righteous: a just cause; Properly due or merited: just deserts; Law Valid within the law; lawful: just claims; Suitable or proper in nature; fitting: a just touch of solemnity; Based on fact or sound reason; well-founded: a just appraisal. INTERPRETATION: REASON OR MORALITY Merriam Webster’s Online Dictionary, 2008. “Just.” Accessed 12-9-08. adj. just: a: having a basis in or conforming to fact or reason : reasonable just INTERPRETATION: FAIR, UNBIASED Wordnet.com, 2008. “Just.” adj. just: fair: free from favoritism or self-interest or bias or deception; conforming with established standards or rules; "a fair referee"; "fair deal"; "on a fair footing"; "a fair fight"; "by fair means or foul"
Wordnet.com, 2008. “Just.” adj. just: good: of moral excellence; "a genuinely good person"; "a just cause"; "an upright and respectable man"
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