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Originally Posted by PJ
Then your alternative is socialism. Because the news media has yet to report how the influx of capital to GM is going to turn around the company to profitability for the 21st century.
Let them fall. Break the UAW, reorganize, pay market wages and benifits and build a profitable company.
Big bloated bad companies should fail, it will get tough, but the free market will adjust.
The government should not be bailing out businesses, should not be protecting business. They should get the hell out of business's way, quit taxing them like cash cow, and watch the prospect of risk and profitability take American companies past all foreign competitors.
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Socialism is state ownership of business. This is a loan from the govenrment. Not even close. The cash will let them pay the bills while the market is down. GM has been restructuring, making better agreements, and designing best in class products. Government not protecting business is part of what got the big three into this mess. The Germans protect their automakers, the Japanese protect theirs, the Koreans protect theirs. In North America, we opened doors and let everybody flood the market.
Quote:
Originally Posted by garagelogic
If anybody really believed GM or any of the big 3 had the ability to turn things from just receiving a loan, then the private sector would be offering to give them the money they need. The fact that they are not just proves this is not a good deal for the taxpayers.
Yes, I do realize how many jobs could be lost. So be it. I imagine many of those people will find other jobs. Will they be able to command the same wage or standard of living, probably not, but then again, a lot of union workers have been enjoying the money they are making well above what non-union workers make. Maybe that would open some eyes in this country.
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Predictions say that GM, and the others, will return to profitability in 2010 when the new union agreement comes into effect. As for the private sector giving them a loan, its kinda hard for anyone to get a loan. Let alone a multi billion dollar loan for a business in debt where their market is down 30%. Lastly,where would 3 million or so workers going to find a job during a recession?