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Originally Posted by CaptainHaplo
What SHOULD happen is that one of the "Big 3" dies. This would accomplish 2 things. First it would provide additional business for the remaining companies (and imports) as the buyers look to purchase. Second, it will shock the other 2 into a frenzy - modernizing their structure and processes, while shaking their design philosophy.
In a true capitalistic system, this is what would happen. You adapt or you die. Its a harsh reality.
Unfortunately - the government - now run heavily by the left - who counts on the support of almost all the unions, will subsidize the Big 3 and let them continue in the non-successful business model they have been using for decades. They politically cannot allow such a huge group of supporting voters to take it on the chin.
Until it is realized that its not the governments job to bail out banks, car makers, airlines and people who buy houses they can't afford, there is no true recovery from our economic woes. Do not get me wrong - the republicans are as guilty in this as the left - because they continued the subsidizing for many years as well.
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Though I aree to you in general re companny mistakes and their consequent bankrupcy, I think the problem is a bit more complicated in this case, simply to the sheer size of GM. Because the folks that have to face the consequences of mismanagement are not those responsible for the missed opportunities, the management, but the workers. And 200.000 thousand ppl losing their job just so will have a huge impact on the economy. It's not only that 200.000 ppl will lose their jobs, but with them the US economy will also lose tax payers and consumers, thus making life harder for other companies, the government and thus ultimately, all the ppl in a country. The question is what's coming more expensive in the long run...saving GM or having to deal with the results of a collapse. The same reasoning was behind the bank bailouts. The long term effects on the economy could be much much harsher then without government intervention.
Then again it has to be considered if a bailout would save GM..or just prolong the inevitable.
The problem also is that the other 2 are not in a much better shape, really.