Let The Auto Industry Go Bankrupt – It Will Help Them

Posted by Bill Dupray on Nov 12 2008 Filed under Economy, Politics. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Medicare sucks, but we can’t do anything about it because it is run by the government and it has no competition. The Social Security system sucks, but you have to participate. It’s the law.

But nobody can make you buy a car you don’t like. There is a market for cars, and the reason the Big 3 automakers aren’t making any money is (1) nobody wants to buy their product, and (2) the unions (which are communist in nature) have raised overhead to the point the companies cannot sell at competitive prices.

Throwing a big bailout check at an industry with such systemic difficulties is simply throwing money out the window. How does a big check make a better, cheaper Pontiac? It can’t. They need better ideas and they need to get rid of the unions. Absent those two things, we are just propping up a failing industry.

Of course liberals will back the parasitic unions until that parasite kills the host. Parasites can suck a lot of nutrients out of a host, but eventually it’s over. Parasites cannot live on their own and they are usually not smart enough to figure that out until it is too late.

Congress needs to hold on to our money and let the market take the car companies where it will. Maybe they will merge. Maybe one will file for bankruptcy. Bankruptcy is not the end of a company. How many times have the airlines filed bankruptcy? And yet, they are still here. Filing bankruptcy would allow the companies to rid themselves of the union contracts and start fresh with a free market labor force. They can use the money to hire top notch R&D people and make a better product, for a lot less money. Unshackled from the unions the American auto industry would shine.

Do them a favor and do us a favor. Let them learn from their mistakes, don’t subsidize them.

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