Democrats from Barack Obama to Nancy Pelosi want to grant immortality to General Motors, Chrysler and Ford. They have decided to follow an earlier $25 billion loan with a $50 billion bailout, which would inevitably be followed by more billions later, because if these companies are not permitted to go bankrupt now, they never will be.
This is a different sort of endeavor than the $750 billion bailout of Wall Street. That money was used to save the ...
Full Story »
To:
Separate email addresses with commas.
25 recipients max.
Note:
Insightful opinion about the proposed $50 billion government bailout of Detroit's big three automakers, supported by Obama and Democrats. The author argues against such a major investment in General Motors, Chrysler and Ford, because of their history of management blunders and miscalculations. This article is thoughtful and makes a reasonable case that this is a questionable use of federal funds. He also suggests that this political decision may be partly influenced by lobbying from powerful corporations and labor unions, exerting pressure on government to bail out their struggling industries.
The author's points are reasonable -- why bail out a poorly managed auto industry, instead of investing these funds to support more important or viable sectors of the economy? Though I believe that Obama has proposed a 'conditional' investment, which could require the automakers to invest this capital to develop more energy-efficient vehicles and green technology.