Wednesday, November 19, 2008

Should GM get government support?

I heard this morning that the "support" would be government loans, not a free pile of money. That's not mentioned in this opinion piece in WSJ by Wagoner, who is CEO of GM. Strange, because that sounds better than a gov't gimme, so I wondered if that is the case. If it is a loan, are you for or against it?


Marge said...

I personally think it would be devastating to our economy if thousands of auto workers were out of work. If the Government is loaning money versus handing out that's a different story, but the auto industry would have to sink or swim beyond that. What if they still can't make a go of it? Who pays the Gov. back? and where is all this money coming from?

Pat said...

Good point. But I wonder what the cost of the job losses would be to "the government" (the taxpayer). Thoughts?

Marge said...

Ditto on the good point. Any way you look at it the government/tax payers will pay for this. If many are out of work they will be filling for unemployment, welfare, food stamps, etc. Some will find work, but many won't, at least not immediately and in our current economy and the housing crisis the options for relocation lessens. People will not be able to sell their homes, especially in depressed areas and many will not want to take a loss on their devalued property.

Pat said...

From fearless email correspondent youchki: They should not get the bailout, loan or otherwise. His reasoning is that when they're ready to declare bankruptcy, the unions will come to the table before the collapse, and solve the crushing burden of a problem they've had all along.

If I didn't state his case right he'll have to comment himself to correct me. (Raspberries.)

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