rh13

Living Within Our Means: Automotive Edition

The sad part of it is that the government bailout does not help anything. You still have a great many job losses and the combined companies will still be weak. You have also taken $10 billion from people who would have used it to buy cars or other things that would have helped the economy. Furthermore, these are industry-defining companies, especially GM. While GM has made many public relation announcements about changing, we have not seen it yet. We have to expect, given the record, that the $10 billion would go to preserve the current state. Given the rate at which GM uses cash, $10 billion probably would not last long.