Jingxi Li Daniel Con: Should the federal government have bailed out the American automobile Industry? Introduction: The bailout of the auto industry merely transfers wealth from taxpayers to auto companies and their employees. In a free marketplace, this is not a good precedent to set. First of all, taxpayers should not be held responsible to bail out private companies. They should not be on the hook to bail out companies that have made poor business decisions time and again. And that's exactly what happened with the Big 3. Many business decisions made within these companies with respect to the products as well as to their labor relations and the capitulations to the unions over the years, has landed them with an uneconomic cost structure that makes it virtually impossible for them to compete going forward. I. Keeping a fair market competitive environment A. Allowing the Big 3 to fail will allow another corporation to take over. 1. They need to take responsibility for what they have done. It would never end to bail out the Big 3. Money could not fix the problem. Letting these companies go bankrupt is only solution to the problem. 2. Once the government issues bailouts like with GM, other companies may
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- Spring '16
- John Z
- Business, The Land, Automobile, automobile industry, Auto Bailout