The End Of An Industry

Recently, General Motors shares hit levels that had not been seen since 1946. Meanwhile, Ford is less than a dollar stunnedside(a) from penny-stock status. Daimler, Chrysler’s minority shareholder, has reduced its interests to…zero. “‘As GM goes, so goes the nation,’ the old saying went. Lets hope they werent cosmos near” (Housel). In the wake of the current pecuniary crisis, American railrailway carmakers afford been clamoring for a piece of the $700 jillion pie. wherefore not? coitus has already shown its propensity for giving away taxpayer dollars to needy corporations want American International Group. In fact, raze strong banks equal Wells Fargo and JP Morgan Chase gather in been attached nine-figure injections from the Treasury. So why not help the struggling auto-giants? They’re too unsound to fail, right? Well, not quite. Contrary to normal belief, the United States is not a socialist country . furthest I check over , we static believed in capitalism. And since we’re still capitalists, the government cannot spill taxpayers’ money like candy at Halloween to corporations whose bad fiscal policy was their own undoing. In fact, Detroit auto executives have the shamelessness to equate their situation to the near analyse of the financial markets.

However, compare these two events is frankly quite stupid. The financial trouble of the car industry is nowhere near as dire. When auto manufactures go out of business, we lose jobs. When the financial musical arrangement goes out of business, we lose the economy . To put it simply, if Ford fails, Lincoln N! avigators win’t start imploding. However, if AIG fails, financial markets will implode. But that is not the point. In order to justify a $25 billion bailout, automakers would have to make the claim that the industry could stick to pricker on a sustainable track. There’s no logic in bailing out the companies if they are simply exhalation to louse up it and beg for more. Throwing more money at the...If you motivation to get a full essay, order it on our website: BestEssayCheap.com

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