Saturday, November 15, 2008

Airlines and car companies

The car companies want a bailout. Experts seem to agree that going through a bankruptcy is the best choice; they will adapt and still make cars. The politicians are the problem.

From SCSU Scholars:

Granting immortality to Detroit’s Big Three does not enhance creative destruction. It retards it. It crosses a line, a bright line. It is not about saving a system; there will still be cars made and sold in America. It is about saving politically powerful corporations. A Detroit bailout would set a precedent for every single politically connected corporation in America. There already is a long line of lobbyists bidding for federal money. If Detroit gets money, then everyone would have a case. After all, are the employees of Circuit City or the newspaper industry inferior to the employees of Chrysler?

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