Another Day, Another Bailout?

I would like to start off by saying that I am neither a Republican nor a Democrat. I hate both parties (maybe the Democrats a little bit more than I should)! I am a Libertarian, but, that is besides the point here. I have just a few questions that I want to ask the government who day after day are destroying our economy (and yes it is our economy).

First, however, for those who are not a hundred percent sure as to why we find ourselves in the current situation we are in, I suggest watching this short video: http://www.crisisofcredit.com/ It gives one a good explanation as to why the economy is so poor.

So, today, once again, we find out that AIG is being bailed-out. Some argue that the insurance giant is too big to fail. Therefore, we are told that we the taxpayers should keep throwing money into the company to keep it afloat. How much? You might ask. Well all ready the company has been given $150 billion and could get up to $60 billion more. Why? Well, apperantly last quarter AIG lost $60 billion (a record for any business).

Now, in a free-market economy (which the United States claims to have), if a business fails it is considered a good thing. Businesses failing show that either a) they failed to adapt to the market b) there was an oversaturation of the type of business within the economy and therefore no need or c) that the consumer no longer relies or wants the service said business provides (I am sure there are many more). Therefore, the market adapts and thrives by shredding off the fat that serves no purpose.

Yet, we find ourselves now in a situation in which we are artificially holding up a business. Think of the market as a living organism and this business now as fat. What happens when there is an excess of fat? The organism dies. We are going about laying the road for our own destruction. Some might argue that there will be pains in the system if AIG fails. I argue, yes there will be pains and yes a company as big as AIG could have huge global ramifications should it fail. However, this change is just like working out. The change is painful, but, in the end we are in better shape and face a longer life.

So, explain to me why when we are in a situation in which, we, the average taxpayer, can afford less is our money going to things which are not neccessary?