The Whole Picture

The Great American Ponzi Scheme (Part II)

Having worked in both the construction industry and the automotive industry, I would suggest there are big differences that would lead the government to bail out one and not the other. In the case of the automotive industry, the closure of the automakers would lead to a dramatic shift of jobs from the United States to other countries. It is relatively easy for companies in other countries to compete because they can simply ship their products here. Those companies already exist and are ready to take over the business.
The construction industry is different. It is an extremely fractured industry. It has a surprisingly low barrier to entry. I have often seen a construction company fail, only to have its key employees immediately start a new company. Construction jobs are not going oversees. Companies from other countries cannot ship houses or office buildings to the United States. The jobs stay here, but only if there is a reason to build. If we let industries such as the automakers move to other countries, we will have less reason to build and won't need those builders.