I hesitated before putting in my 2 cents. A lot of interesting thoughts here and some good reading. Well, here I go.
My initial "true capitalist" nature makes me want to let the market take it's course. That is, if you can't compete, you go out of business. But reality intrudes.
It's estimated that between 5 and 9 million American jobs depend on the auto industry. Add to that the pensions, health care, etc. If the "Big" 3 go away, the US government and state and local governments will be on the hook in the form of unemployment insurance, pension guarantees, and lost tax revenue. It's probably cheaper to give them the loans.
If you think about it, didn't the state governments give millions of dollars to the Asian manufacturers to bribe them to build their plants in their state? I seem to recall the some state (Alabama) spent billions to improve infrastructure to support a new "transplant". What's the dif?
Someone mentioned that it is the unions that screwed the "Big" 3. We need to remember that it was unions that fought for benefits like health care. These benefits trickled down to non-union shops. If the unions go away, it won't be long before the industry moguls decide to cut yours as well. I seem to recall a "secret" memo that was circulating at some Toyota plant that detailed how they were planning to bring wages and benefits down to "traditional" levels, once the "Big" 3 were no longer a factor. The guy that leaked it was fired.
http://www.autospies.com/news/Toyota-is-bad-for-America-27997>/
This is not to bash Toyota, it's simply to illustrate the reality that a company is in business to make money and they really don't give a darn about their workers. Ford would do the same if not for the UAW. Lower wages equals more profit! Why do you think the transplants are pretty much located in right to work states?
We have enjoyed a standard of living that may no longer be sustainable in a world market. For years we were eating the majority of the pie. Now, the rest of the world wants their share. That means less pie to go around.
Wonder if the definition of a "good job" in the near future will be delivering pizzas in a Honda?
Sure am glad I'm on the back nine of life and that I worked hard and saved my money.
