Quote:
Originally Posted by DGthe3
The management responsible for causing GM's problems has been gone for a while. A lot of the problems were started decades ago, but in the ~5 years leading up to the bankruptcy, they were working to correct a number of those errors by working with the UAW to cut costs, streamlining operations, and refocusing on product. In all likelihood, the mess wouldn't have happened were it not for the credit crunch in late 2008, and they wouldn't have had to go to the government to secure cash. They could have either gotten more traditional loans, or they might not have needed them in the first place. So if you want to accuse those at the helm in 2009 for the bankruptcy, you're sadly mistaken. If anything, they were the best group GM had had in years. But even the best captain & crew can't save a sinking ship facing a tidal wave.
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I'm glad to hear they were changing course, and I hate to sound like a broken record, but so what? IMO, none of that justifies the taxpayers taking a loss to bail them out. GM would have gotten restructured and sold if the government didn't step in. The UAW probably would have gotten less, their creditors probably would have gotten more, that's about the only difference.
On the flip side, bailing out GM added more debt to our government that's already overburdened. Furthermore, it jeopardizes the governments ability to provide social safety nets (welfare, unemployment benefits, Social Seuciryt and Medicare/Medicaid). And it creates another moral hazard (along with the banks, insurance companies, GSE's, etc...).