Mitt Romney makes a very cogent argument against a bailout in today’s New York Times. Don’t get me wrong; I live in the heart of the Auto Belt, and I have many friends who work in the industry. I don’t want to see it disappear altogether. I have owned a series of American-made cars since I was old enough to start buying cars. By and large, they have been good to me (especially our minivans!)
As a taxpayer, though, I can’t stomach the thought of sending another $25 billion, or more, to Detroit just to see it ratholed in a useless quest to stem the bleeding. I see firsthand how many mistakes the upper-level management of the ex-Big Three have made, and I can’t imagine that just giving them more money is going to solve the problem. Bankruptcy, on the other hand, gives them a well-understood set of tools to attack some of the root causes of their current situation. The medicine tastes terrible, but the eventual cure is worth it.