Tags: big three automakers
Bailing out the auto industry
November 18th, 2008I just read an article on CNN Money that discusses the pros and cons of making assistance available to the 'big three' auto manufacturers in the form of federal loans, and I have to say that the more I read or hear about this, the more physically ill I feel.
Maybe its just me, but I thought that being a free-market capitalist society meant that we practised neutral patterns of market regulation with only minimal governmental intervention?
I understand that the auto industry in general is truly integral to the national economy, and that tens of thousands of workers and millions of consumers either directly or indirectly depend on it for their individual economic stability... But does that mean we should allow these inefficient behemoths to keep operating as they are at the taxpayers' risk?
Truly, these businesses cannot be allowed to fail outright. But that is what chapter 11 bankruptcy is for... Allow these businesses to keep operating, but use the law to force them to shed weight, trim up and return to profitability. If GM, Ford or Chrysler eventually go under even after using the chapter 11 safety valve, then good bye and good riddance!
I admit that I would be devestated to be an employee let go after years of service in that industry. But instead of waiting for Michael Moore to show up on my doorstep so I can cry on camera and plead for my job back on a theater screen, why not take this as an opportunity to start fresh in a new industry? Maybe even take a chance and move somewhere else?
No, not everyone can easily do this, probably very few can or would do it at all. But to me, that is the big problem... Not the failure of the US auto industry, but the failure of US auto workers and consumers at large to see the writing on the wall for the status quo and force a change on the auto industry.
After all, these were the comapnies that continued to bring us such great vehicles like the H3 and Escalade long after it was clear that fuel prices were generally on the rise and the days of cheap, unlimited and easy-to-access oil were long gone.
XML Feeds
