Gm files for bankruptcy, start subsidizing autos?
The free market capitalists told them over and over again that bailing out the auto industry was a bad idea, but did they listen? No. What happened in the end? GM is still going bankrupt, but this time after taking billions in taxpayer money with them.
The Obama administration has failed to “fix” the auto industry after several futile attempts, yet they refuse to give up. They continue to ignore the principles of economics and they continue to meddle in the markets. The latest move is a suggestion to subsidize auto purchases. I have one question: how much taxpayer money and how many failed attempts will it take to get the people in Washington to say, “enough is enough, we will leave the market alone”?
These moves will only continue to distort markets and throw taxpayer money down the drain. It is really scary that this administration refuses to budge on their ideas even after they are proven wrong. What will it take? I really can’t figure it out. The only silver lining I see in this whole thing is that the Senate version would take the money for this out of the stimulus package, so atleast it isn’t new spending. It will still be a waste though…
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Aug 05 2009 at 11:43 pm
[...] more we find ourselves in a debate over the auto industry and the government meddling in it. The Car Allowance Rebate System (more commonly referred to as “Cash for Clunkers”) bill that Congress passed a little [...]