Big Three Should Stand On Their Own Feet

It's clear that Detroit would prefer to deal with congressmen than bankruptcy judges. Having Congress tell auto companies how to make cars and what to pay executives is offensive. But that's what will happen if politicians put up loan guarantees. A bailout would be a reverse Robin Hood story: robbing from the less wealthy to give to the more wealthy. As Daniel Mitchell of the Cato Institute writes, "[T]he corporate bureaucrats at the Big Three are among the very richest Americans. The UAW bosses make extravagant salaries as well, and even regular union workers make [more] than the average American." An economy in recession needs to cleanse itself of bad investments born of years of policy errors and managerial blunders. Keeping capital locked up in failing companies will slow the recovery and extend the hardship longer than necessary.

Page
  • 1
  • |
  • 2
Join the Discussion
You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus
 
You Might Also Like...