When is enough, enough? How much more money can GM and Ford throw at their problems? Eventually they will keep laying off workers until they have no one left on the assembly line. How much of our tax money does the government want to keep throw at failing businesses? The government needs to just let GM, Ford, and other failing businesses to die a slow death instead of constantly proping them up despite a broken business plan and unions driving them into the ground.
Yesterday, Ford and General Motors announced that they are so far in the red that they will need help from the US government if America wants them to stay in business next month. Ford and General Motors burned through during over $15 billion in the last three months for the quarter that ended in September. How do you spend $15 billion more than you make in a small fraction of a year? General Motors spent $6.9 billion during the quarter, and Ford spent $7.7 billion in cash while posting a $3 billion loss for the quarter. And, now the companies are begging the federal government for a piece of the $700 billion bailout package that was past last month in Congress. But, they were not originally allocated any money from that plan. The real kick in the teeth is that the big three automobile makers were given already a $25 billion loan this year by Uncle Sam. I definitely do not think that the American taxpayers will be seeing any of that money back.
Whatever happened to survival of the fittest? The government did not bailout DeLorean in the 1982 when it went bankrupt. Why should the government help GM and Ford stay afloat? My friend’s dad lost his job in a Carolina textile mill a few years back when the company began aggressively outsourcing the production of our cotton t-shirts and bed linens. No one helped him find another job.
The government should let failing companies fail. I know that it will hurt a few people in the short term, but it will be good for the economy in the long term. Whatever happened to making tough choices that benefit the greatest number? Why is the government choosing to help only large multinational corporations and not small family owned businesses?
Once again, the real problem will be unintended consequences. There are approximately two million jobs that are intertwined to the auto industry. There are a lot of suppliers whose only customers are the big three car manufacturers. I understand that losing two million jobs will be very hard on the economy and the workers, but maybe these are jobs that America should not have anymore. Maybe American industrial workers should move on to a new industry. There is a time when we should say that enough if enough. There is a greater good to think of, and America can and should move on to industries where we still have a competitive advantage.