Sheldon Richman
Bail Out Detroit?
It seems certain that the taxpayers will be forced to save GM and the rest of the Big Three, if not during the lame-duck session of Congress, then some time after January 20. The bailout backers say the United States can’t survive as an economic power without them, but why should we believe that? About half the U.S. market for cars is served by several foreign companies with facilities in the U.S. As the New York Times reports, “[M]any industry experts say the big foreign makers are established enough to take control of the industry and its vast supplier network more quickly than is widely understood.”Yes, even without GM, Ford, and Chrysler, I believe we Americans can still hold our heads high.
Comment by Steve Hogan on 17 November 2008:
Pick a dying part of the economy and more often than not you’ll find organized crime, er, labor, is behind the downfall: education, steel, textiles, health care and now cars. They strangle innovation and make necessary adjustments to ever-changing economic conditions practically impossible for the companies that employ them.Much like the politicians they bribe, organized labor – at least its leadership – has frightfully short-term thinking. They’re willing to kill any promising future prospects at the altar of short-term gains they could never enjoy without government protection and special favors.I sympathize with the thousands of rank and file members of the UAW that hitched their wagon to this motley crew of bandits, but the verdict is in. The American auto industry is a corpse. Give it a proper burial. Let new management assume the capital and the risk. They could hardly do worse.
Comment by Max M on 18 November 2008:
Certain?Well certainly not certain before Dec 31st (though as suggested, maybe after Jan 20th)According to the betting markets today, we\’re looking at a 35% chance.
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