Allowing the Big 3 automakers to fail would also cost taxpeyers

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2008-12-10 17:47

Frank K
Colorado Springs, CO

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According to an article in Huffington Post, "Just walking away and letting the struggling Big Three automakers go under would drain government coffers by about as much as the $15 billion bridge loan that lawmakers are preparing, and perhaps much more, according to outside analysts. The costs would come from lower tax collections by the federal, state and local governments and the payment of extra unemployment, pension and other benefits to unemployed or retired auto workers."

The question could be posed quite simply as: "Is it better to pay unemployment and other benefits to laid off workers, or is it better to have them gainfully employed and paying taxes?"

2008-12-13 08:56

Frank K
Colorado Springs, CO

Posts: 12
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One of the frequently heard arguments for not bailing out GM is that they don't make quality cars that consumers want. While that is certainly true for the past, perceptions take a long time to overcome. According to Car and Driver Magazine, the Chevy Malibu is on their Ten Best Car list, right behind the Honda Accord and Nissan Altima, but ahead of the Toyota Camry.

But for every success story like the Malibu, they also have losers like the Hummer that drag the company down.

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