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Home Front Economy |
Detroit, Bailout to Nowhere |
2008-11-14 |
Not so long ago, corporate giants with names like PanAm, ITT and Montgomery Ward roamed the earth. They faded and were replaced by new companies with names like Microsoft, Southwest Airlines and Target. The U.S. became famous for this pattern of decay and new growth. Over time, American government built a bigger safety net so workers could survive the vicissitudes of this creative destruction -- with unemployment insurance and soon, one hopes, health care security. But the government has generally not interfered in the dynamic process itself, which is the source of the country's prosperity. But this, apparently, is about to change. 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 financial system itself. It was used to save the capital markets on which the process of creative destruction depends. |
Posted by:GolfBravoUSMC |
#7 They better hurry, because the rumor is they can't make it to year end, let alone January 21. |
Posted by: Nimble Spemble 2008-11-14 20:21 |
#6 The Democrats WILL find some way to bail out the UAW. Count on it. |
Posted by: Deacon Blues 2008-11-14 19:39 |
#5 #3 BO won. The unions supported him. The unions are going to standing in Whitehouse line for payback. A variation of Reagan's PATCO solution comes to mind. Doubt if the bottom feeder has the stones for it however, or much of anything else. |
Posted by: Besoeker 2008-11-14 15:57 |
#4 phuque the unions |
Posted by: Victor Emmanuel Crunter7894 2008-11-14 15:07 |
#3 BO won. The unions supported him. The unions are going to standing in Whitehouse line for payback. |
Posted by: JohnQC 2008-11-14 14:53 |
#2 There is still plenty of dynamism in the USA. Sometimes I think the big corp's exist to stifle it while lining the pockets of their cronies. |
Posted by: Anguper Hupomosing9418 2008-11-14 14:19 |
#1 The Big 3's problem is the same it has always been, an unholy alliance between the UAW and feckless management. No amount of federal money is going to fix the problem as long as the UAW is involved. |
Posted by: RWV 2008-11-14 13:08 |