Two of the "Big Three" in the auto industry, GM & Chrysler, find themselves on Washington's front step on their knees begging for again, more money. GM announced last week that they wre going to lay off 10,000 employees because the government told them they had to "manage their labor costs." They're also offering early retirement options. But you thought GM was bad? Chrysler has 32,000 jobs ready to be erased from the payroll. The companies already asked for 9.4 billion (GM) and 4 billion (Chrysler), and are coming back for more...and by more I mean 4 billion (GM) and 3 billion (Chrysler). How is giving more money to these companies going to solve things? If you have a good or service that people want, they will spend money and buy it. Currently people don't want to buy cars. So instead of dealing with it, they run to "The man". Throwing out money to every failing company like candy at a parade is not going to help things in the long run....Why doesn't the entrepreneur down the street get the money they need? They're filing for bankruptcy as well. Just because the government throws down some money does not mean that people are buying cars...It stops the flow of the free market--Instead of putting the money in the hands of the people, the government is beginning to overstep their boundaries. Laissez-Faire, or pure capitalism, is to keep the government from interfering with the economy. Currently we're not doing that, and as to just regular capitalism? The "use of markets and prices to coordinate and direct economic activity"? We're not doing that either. Put the money back in the hands of the people. Give it to us and tell us we have to buy a car with it. Its probably way more complicated than that, but if I was given money and told to buy a car with it...I'd be much happier- and so would the auto industry. I'd have a new car, and they'd be selling some.
-CH
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