Capital Idea: Another Bailout is Needed
November 24th, 2008 | By Ben Foster in Capital Idea | No Comments »
On the future of American automakers, everyone, it seems, has a different opinion. The consensus here at Georgetown (speaking anecdotally) is that they should be allowed to fail. Automakers’ woes are attributable to a few things: their inability to anticipate the market’s move to smaller, more fuel-efficient cars; their unwillingness to retool factories or modify their product offerings as such; and the crushing weight of labor and health care contracts. So why should taxpayers bail them out – effectively absolving them of their failures?