It's For The Ecooooooooooonomy!

[unixronin]

Our thanks for bailing GM out? They’re going to roughly double the number of jobs exported to China, Mexico and Korea.

Yeah, that’s really going to help the economy.

Let the bastards fail. They got themselves into this mess. We can't keep throwing good money after bad forever.

Oh, wait, I forgot. It's not really what you could call "good money", is it? It's probably still wet from the presses...

Comments

[lebo-superman.livejournal.com]

That's why I said we should subsidize them. Look at it as underwriting the start-up costs - except that 100,000 won't even touch a decent plant to build autos in. The main difference is Tesla would be an investment in a better vehicle for the future, not more of the same that we've had for 100 years. Did you know that the Ford Model A got better fuel mileage than most mid-size cars on the road now do?

[unixronin.livejournal.com]

Honestly, I believe that every dollar we throw into the black hole of GM and Chrysler is lost, because in all ways that matter they are incapable of changing. The things that are wrong with Detroit are inseparably bound into Ford, GM and Chrysler at every level, from the shop floor to the boardroom. Any attempt to prop them up is just going to burn money while putting off the inevitable, while letting them become progressively more and more uncompetitive.

It's time to quit flogging the dead horse and move on. Tesla is probably a great place to start.

[ithildae.livejournal.com]

The horrid irony is that it is primarily government regulations that prevent them from making fundamental changes. Remember that many laws support the unions and prevent the manufacturers from making meaningful changes in labor costs. (Disclaimer: I am in favor of unions existing. I know people whose parents worked the coal mines of West Virginia. I really do favor unions.)

[ithildae.livejournal.com]

1% of $15 billion is more than $100,000. I did know that the Model A got better mileage. I also know that my 14 year old Saturn has more luxuries and features than were ever dreamed about when the Model A was in production. That lost mileage goes to cover my comfort, among other things. I understand the cost and trade offs, I also understand that there are better ways of getting around today.

I think we agree that subsidizing a failing giant is a futile gesture, with any kind of planning horizon of more than a few months. One specific example of a better company to invest in makes a great point. I think there are many examples of a better investment. And if they were invested in, they would easily absorb the lost jobs from the failure of GM. The whole concept just turns on my "rant" mode.