I don't want the auto industry to die either in the USA, but the problem with bailing out auto companies and financial institutions is the government creates a moral hazard scenario where the affected parties will put less effort in averting failure since a safety net exists (or is perceived to exist).
Other industries in the USA like technology, pharmaceuticals and energy are doing well without bailouts and are in fact are world leaders. Why can't we expect the same from the automotive and financial industries as well ?
Peak Oil, Cars, and Depressions [View article]
I don't want the auto industry to die either in the USA, but the problem with bailing out auto companies and financial institutions is the government creates a moral hazard scenario where the affected parties will put less effort in averting failure since a safety net exists (or is perceived to exist).
Other industries in the USA like technology, pharmaceuticals and energy are doing well without bailouts and are in fact are world leaders. Why can't we expect the same from the automotive and financial industries as well ?