I'm curious what my readers think of bailing out the Big 3. Part of me thinks that one of them needs to fail, so we should just let it happen. Its probably going to happen sooner or later anyways. That's what recessions are for really: replacing companies that cannot compete with more efficient ones.
And part of me thinks that the worst possible thing that could happen in what already looks like a recession is to put a couple hundred thousand more people out of work.
What do you guys think?
5 years ago
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3 comments:
There is going to be cuts with or without the bailouts. Part of me wants them to all claim bankruptcy because they brought this on themselves but part me wants the government to help right now. Health care is one of a load of problems with the America Auto industry. Thats why its the governments job to help but I also think the auto industry needs to really streamline themselves. Like you said one needs to go down unfortunately. Hate to say this the Asian automakers knew what they were doing. Waste not want not...the whole situation is a Catch 22
I think that one should fall and that one or all of them should merge and form one company. I have been listening to NPR a lot and I actually agreed with some of the republicans who were arguing against it. They said, bailing them out now is not going to help them since they have ongoing problems that are not being fixed. The car companies will just need to be bailed out again in a few months and then the US govt will be out all of that money for nothing. It does not help that in our current economy, car sales are down and the high gas prices did not sell those big pick-ups and SUVs during the summer time. I say no bailout. They have too many big issues that can't be fixed overnight.
Going back to the blind sightedness of GM, since gas prices went down again, and truck/SUV sales went up; they are increasing production of their trucks and SUVs. They are like crack addicts that keep forgetting what has screwed them over, and keep looking for their next fix.
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