The Bailout

Posted by Chris Campbell at Wednesday, December 10, 2008

It appears as if Congress is going to hand Detroit a $15 billion loan. The concern over direct and tangential jobs is certainly a concern, but when looking at the overall picture, I'm fairly disgusted that this lifeline is being handed out. For one, the three have spent years scoffing at the environmental ramifications of the absurd trucks they churn out. Secondly, innovation has been an absolutely absent discussion at management meetings. While Japan, Germany and others bolted past us over a decade ago, US manufacturers remain bound to Exxon and the other despicable oil companies. Third, just imagine where else this money could go? Fourth....I will stop this list as it could go on forever.

Barack Obama has walked a middle line on this issue and this has been a bit disconcerting. I understand that he doesn't take office until the third week in January, but a firm position on this would put faith in the American public. GM, Ford and Chrysler are US institutions, I won't discount that, but so were Capitol Records and Warner Music Group. But times have changed, and just like the music business, the auto business failed to adapt to changing times. And as a result, just like the many businesses suffering through these times, they should naturally fall into Chapter 11.

This is $15 billion. This money could go towards education, health care and/or job creation. Congress has also spent hour-upon-hour discussing, debating and fine-tuning this package, time that could have been spent, again, on more pressing issues. Even if by 1 : 100 chance this bailout ultimately leads to a rebirth of the American auto industry, I'm not sure the sacrifice would be worth it. Just like almost every employee in the Bush Administration, this country has bid farewell to accountability. I thought the democrats and especially Barack Obama were going to restore this dearly lost part of America. This bailout proves that they're not there yet.