Don’t bailout the Big 3 beggars

Let the Big 3 beggars (GM, Ford, and Chrysler) go bankrupt. These companies have been mismanaged for years and can’t compete against foreign manufacturers which make superior products.

The role of the government should not be a panacea for failing big business with one exception: banks. Credit is the life blood of the economy, and the government would stand to lose more by not bailing out the banks because of FDIC insurance.

All hope is not is not lost with corporate bankruptcy for manufacturers. Major companies often survive after filing Chapter 11. It’s the shareholders, pension plan beneficiaries, and creditors who stand to lose the most. Some say the Big 3 won’t survive if the government doesn’t bail them out. I say a bailout would be like keeping someone in comotose on life support knowing the chances of freeing him to a normal life is next to nil.

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4 Responses to “Don’t bailout the Big 3 beggars”

  1. jonolan Says:

    Actually I agree. Filing bankruptcy would nullify their deals with the auto workers’ soviets and allow them to pursue honest and profitable business.

  2. christianliberal Says:

    Hey, I’m no genius, but why don’t we take some of the profits of the oil companies and give it to the auto industry?
    Certainly the two cannot live without each other, and certainly the oil companies can afford it.

  3. pastamanvibration Says:

    Christianliberal,

    First off, I have a book to recommend to you: The Politics of Jesus by Obery M. Hendricks, Jr. Have you read it? I think you’d like it very much.

    I’m against the idea of a “windfall tax” on oil companies unless it’s based on extracting oil from U.S. soil. It promotes an anti-capitalist, entitlement mentality. Obviously, I am a capitalist, but I advocate proper regulation because in the real world a lot of people don’t act rationally or with integrity.

    Secondly, the corporate tax rate in America is high already at 35%. In socialist Sweden it’s less…28%. Global companies based in America hide profits in tax havens overseas. And small businesses solve the problem of a high tax burden by becoming S-Corporations, so the owners pay a lower tax rate on their personal tax returns.

    Lastly, if the shrinking “Big 3” were to close shop, other auto manufacturers would fill the void. The oil companies don’t need the Big 3.

  4. novice101 Says:

    The Big Three certainly didn’t come across as ‘Big’ on the senate floor. The reasons given to the senators did not sound convincing.

    A foreigner’s view:

    http://novice101.wordpress.com/2008/11/19/big-three-vs-senators-who-is-right/

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