Last week, we recommended that Obama let GM file for bankruptcy rather than throw more taxpayer money down the rat hole. This position generated some ferocious responses.
We stress that, in recommending the bankruptcy option, we are not suggesting that the government abandon GM’s workers: We’d rather the government spend billions on retraining and job placement than on propping up perpetually weak companies that can’t fix themselves. We also don’t buy the argument that bankuptcy would be a death-blow for GM. The only folks it would be a death-blow for would be shareholders and many bondholders.
But, in any event, we want to give the pro-bailout folks their due. Here’s a note from one:
The government will be spending more on the pensions and combatting the unemployment of millions of other small businesses ruined by the demise of the US auto industry, than a bail-out would cost. The trickle-down effect will be more disastrous than any economic effect we have felt THUS FAR, IN OUR LIFETIME. The government should also do something about the uneven playing field our automakers face….allowing the Japanese to build cars on our turf, when we cannot do the same overseas. The “enemy” in this automotive war is represented by Americans not willing to accept that the US automakers ARE restructuring, HAVE made in-roads into reducing the perks of the UAW, ARE building quality cars. These people want America to prosper, but don’t realise it cannot when they are undermining its manufacturing base. Short-sighted fools. Do they even teach American history in schools anymore? I suppose it is ok to bailout the financial crooks on Wall Street/the banking/securities arena, but not the manufacturing base of our economy. AIG should PAY BACK their $119 billion…they have shown what they will do with the money. I believe in America and American products. American industry should be supported by Obama and congress. Now, I am going to spend about 4-5 hours of QUALITY time supporting another great AMERICAN institution—NASCAR is racing at Phoenix…time for some enjoyment instead of worrying about the NEXT DEPRESSION.
See Also: Don’t Do It, Obama. Don’t Bail Out Ford and GM
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