OBAMA: Auto Industry Bailout Saved 1 Million Jobs | News One
Government help is not always bad. Now if the so called "job creators" were doing their job they wouldn't need the government to bail them out.
You left out the word, "Union".
The bailout as passed was aimed not at saving jobs, but at saving Union Jobs.
The great fear as presented to the public was that if a bankruptcy proceeding occurred, there would be a loss of faith in the products of the company and an eventual failure of the companies affected.
What was the first step in the bail out? Bankruptcy. However, the bail out provisions demanded that the union would remain intact. Lunacy. If there was no bail out and a bankruptcy had occurred, the Unions would not have had bargaining rights with the reorganized auto manufacturing entities that emorged.
What makes the American Auto Industry uncompetitive is the cost structure and this is driven primarily by the labor rates. As long as there is a UAW, there will be too high labor rates. The industry was dying of a cancer and the prescription was to save the cancer.
Brilliant!
It was everything that years of experience with government planning has taught us to expect.
In any economy if you have a program that is counterproductive....which unions are....you let them fail so you can fix the problem. Instead Obama and friends perpetuate the problem by bailing it out temporarily.