No Detroit bailout, kthxbai

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.

Advertisements

Comments Off on No Detroit bailout, kthxbai

Filed under Musings

Comments are closed.