It is a mistake for the U.S.
Government to just bailout General Motors. The fact is that giving money to
such a company may allow them to keep their doors open for a while, but it does
not help the workers keep their job, be it with GM or especially their
suppliers. It also does not help the dealers, mechanics or anyone else who rely
on the auto industry. Instead, the government, thus our economy and nation,
would be better off modernizing the nation's fleet of cars by purchasing
100,000 cars at an average cost of $25,000 each. That would mean spending 10%
of the $25B needed to bailout GM, and since GM only builds cars when ordered,
that would keep the workers at their jobs, and the industrial supply line
working.
The sale of used cars would also help the
economy and give the U.S. a de facto rebate, as people who need reliable
transportation will be able to purchase well maintained used cars at a good
price and the government would take in revenue from those sales. Business is
facilitated by moving money from hand to hand via the exchange of goods and
services for money. Giving money to a person to continue what they are
currently doing is welfare, and it does not advance their condition. The same
applies to a bailout. On the other hand, buying cars creates employment and
productivity, thus the best option to help troubled auto makers. And, in the
process, the U.S. will obtain some value for its investment. |
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