Originally Posted by
Sirrus Rider
This is quite true. Unfortunately, much of our economy is tied to these companies with the grossly overpaid yahoos who ran them into the ground. I know many cyclists want to see the complete disappearance of cars and the auto industry; however, they fail to realize that if it does occur one in ten people will be unemployed. My capitalist beliefs want the automakers to go bankrupt as punishment for gross mismanagement and a lack of proactive technical innovation; however, I don't want to see the net result of such a failure. It would make the Great Depression look like a church social.
I'm afraid you're right. The massive unemployment would spiral and result in many others losing their jobs, far from the automotive centers.
That's the main concern, of course, but there are other reasons that losing the Detroit 3 would be bad for America.
- It would greatly lessen competition, which would leave consumers with fewer choices and higher car prices.
- Honda supports the bailout in order to protect the parts supply chain that all manufacturers depend on.
- Competition from millions of laid off auto workers would depress wages in other industries.
- The US would lose the strategic military and economic advantage of having a domestic auto industry.