One misconception about the auto industry bailout is that if we don't "rescue" it, it will "go down" and take many other industries with it.
Not true!
The Democrats are presenting a FALSE CHOICE by saying that the only alternative to a bailout of GM is that the company would be dissolved and take out millions of jobs.
Declaring bankruptcy and starting over will not even mean the assembly lines shut down or anyone misses a day of work. It is a seamless process.
What it does mean is that creditors, shareholders, pensioners, workers, and salary bosses will all take a long-overdue hit. They have milked the car companies dry for years, taking the path of least resistance - building empty steel boxes called "SUVs" and "Pickups" which had high profit margins, while conceding the more difficult and competative market segments to the Japanese and Europe.
We we "bail out" GM and others, they will go back to their old ways (particularly now that gas is $1.87 here in Georgia) and sell more SUVs and Pickups and nothing will change.
We cannot reward bad behavior.
In addition, giving GM $20 million without changing the fundamental management and labor structure will just be tossing $20 million down the drain. GM will go under (or request bailout after bailout) and take our money with it.
Why not just nationalize the company like they did in France? (Just kidding, that's an even worse idea!).
This idea of "ALL OR NOTHING" being pur forth by Pelosi and the governor of Michigan (whatshername) is a FALSE CHOICE. Companies CAN go bankrupt and still survive.
Rather than BAILOUT GM now, let it go bankrupt and then if they have trouble getting debtor-in-possession financing, THEN step in (with a loan or a stock purchase).
But propping up incompetent management and corrupt unions is a BAD IDEA. I've seen union members SABATOGE the assembly lines out of shear boredom. And many managers are more interested in building their own empires than in the overall success of the company.
DO NOT REWARD THESE PEOPLE FOR THEIR BAD ACTIONS!
DO NOT USE MY TAXPAYER MONEY TO DO SO!
If you do, WHERE IS MY BAILOUT? You'll have to bail all of us out then - it would only be fair. And that would BANKRUPT the country - chapter 7, not 11, too.
I am SO disappointed that the Democrats are already pandering to Michigan with this bailout plan. I wonder if voting for Obama was the right idea.
One BIG problem with the "big three" is that they ARE in Michigan. The automotive tastes of Michigan (opera windows, landau tops, camaros, Grand La-Barges, crappy quality) do not play well in the coasts. Japan and Europe have filled a void where Detroit has failed.
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