Auto industry bailouts

[olias]

I'd let to get a discussion going on Obama's auto industry bailouts and whether you think it was a good move or not. I'm sure a lot of you think that the struggling auto makers should have been left to die. In a perfect world, I'd agree. The problem is the damage that would have done to an already weak economy. I see these bailouts as a necessary evil. Especially when you consider that all of the people that would have lost jobs would be added to the staggering number of unemployment recipients. I'd rather see the government take a chance on the bailout than have them sink more money into unemployment benefits which is money wasted. At least we stand a good chance of getting paid back on the bailout money.

 

[nutmeg]

You know how sometimes a disgruntled worker can sabotage the employer. I just get the impression that the culture of GM (for example) just decided to sabotage the US (American people).

Unions gave up good faith bargaining (good year we'll pay you more, bad year we'll pay you less). Pressure from the regulators (cost vs benefits).

While Toyota was able to spend time designing some nicer vehicles, GM was managing health care and pensions.

GM just gave up.

Suppose my theory holds water. The bailouts are a waste of money. You are not going to make a disgruntled employee happy.