"Why bail out the car companies when they bailed out on us?"

Much has been written about the possible bailout of Detroit auto manufacturers — by Greg Mankiw, The Economist here and here, Baseline Scenario, Salon and Richard Florida here and here, to name just a few — and nearly everything I’ve read points to the bailout being a terrible idea. The American car manufacturers have been classic examples of mismanaged companies (see the chart above from Professor Mark Perry) who would rather lobby against change than profit from it.

This could be the first big test of character for soon-to-be-president Obama. If he bails out Detroit without serious conditions attached (he’s made preliminary statements to this end, but nothing at all concrete) it would only be for political reasons

0 thoughts on “"Why bail out the car companies when they bailed out on us?"

  1. American auto industry say they are losing millions of dollars per day.. when it is that they aren’t robbing as much from the masses as they are accustomed to… American cars shouldn’t be 30-grand… they should be 2-grand… They last only five years before things start to fall apart and off them… They aren’t worth 2-grand… They are getting as much for a new car as houses sell for in small cities and large towns… They are part of what’s destroying the economy… All they care about is their god-damned private executive economy… Their pricing has made it so most people can’t afford a new car in their lifetimes… We get the garbage cars the lucky ones toss-out, after they’ve almost destroyed them… The price of new parts forces us to buy our parts from the car dumps… The car companies have treated us like shitt for decades.. Why the hell should the Public’s money be used to treat the car companies like royalty, when the car companies are nothing but shithead asshole money-sucking life-sucking blood-sucking cheapskate parasitic-bullies..?

  2. One of the biggest chunks of that $72.31 Big 3 average is legacy costs–health care and pensions for retired workers.

    Something like $1500-$2000 in legacy costs are attached to every car before it even hits the assembly line.

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