The AIG bonus compensation issue illustrates why governments and politicians must stay away from the private sector.

Instead of allowing AIG to enter bankruptcy (thus allowing their “frozen assets” to be used by other more competent companies), US government politicians chose to steal unprecedented billions from US citizens and hand it over to AIG and other failing companies. These politicians stated that AIG and other bail-out recipients would be expected to stay afloat and eventually repay the government-stolen money. The very fact that these companies were failing should have been enough evidence that they have been fundamentally flawed and would have no means of recovering (without further government edicts that force people to deal with them).

To add insult to injury, the government is now dictating how these companies should operate. President Obama has no experience in running or managing a successful business—he has never been an entrepreneur or a CEO, and yet he declares that AIG employees must not receive bonuses. He hasn’t a clue about whether bonuses are necessary for employee retention in a thriving financial business.

If these businesses were failing before politicians forked over other people’s money, they are sure to fail with these same politicians acting as corporate managers.

It’s past time for the US government to stop feeding our wealth in to the cesspools of rotting companies (and other socialist schemes) and get out the way so that free-market capitalism can let these companies die while rewarding other companies that are run efficiently and profitably.

A “man on the street” recently told me that the government has to “do something” about the economy.

This “do something” rally cry has turned in to an excuse for everyone to abandon what little sense they have and essentially run around in circles while flailing their arms and screaming. This has lead to a seemingly endless stream of new destructive government policies that will only create future debt, bubbles and recessions while putting more of our freedoms under the control of government politicians whose only qualification to make critical decisions is their ability to say what people want to hear.

Here are a few points that the shrieking public should remember:

Please remember that there are always real consequences to government intervention in to free markets, and “doing something” is no excuse to create more economic devastation.

This weekend in New York City is the 2008 International Conference on Climate Change. It will be a “consensus of scientists” (many with genuine facial hair) who will present scientific reports contradicting the global warming hysteria that is consuming so much of our wealth and freedom these days.

You can read more about it here: http://www.heartland.org/events/NewYork09/newyork09.html

This is just a simple reminder that long before humans existed on this planet, the climate has constantly and drastically changed. Since the ascendency of humanity, the climate continues to change just as it did before.

The only difference today is that environmentalists want you to believe that any changes in climate are due to nefarious human activity. The term “climate change” is quickly becoming synonymous with “we need green socialist dictators to put humans in their place.”

Please use your reason. The free world depends on it.