The Impossible Dream ; Auto Bailout Fosters Delusional Thinking
The Washington Times › November 17, 2008
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Summary
It is a waste of taxpayer money to bail out Detroit's Big Three auto companies. These companies have been in secular decline for at least two generations. Their automobiles have been less fuel efficient, of lower quality, less inspiring and more expensive than the automobiles of foreign-owned competitors.
In the 1980s the government bailed out Chrysler. Now Chrysler, accompanied by GM and Ford, is back at the public trough. Public bailouts of failing companies only postpone the inevitable demise of these companies. Let the creative destructive force of this recession euthanize an inefficient group of companies by forcing them to reorganize or go out of business. Since the federal government is debating the size and form of a bailout, let us examine the rationale for a public bailout.See the full content of this document
Extract
The Impossible Dream ; Auto Bailout Fosters Delusional Thinking
Saving jobs: Perhaps the most compelling and compassionate reason to support a public bailout is to save hundreds of thousands of jobs that would be lost if these businesses fail. The losses would be felt by employe...
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