11.17.2008

$25 billion? Why stop there?

When Congress gives $25-$50 billion dollars to the car companies, will there actually still be any car buyers in the market? If I were to guess, wouldn't we be anticipating 2009 and 2010 to have very low new-auto-sales numbers?

I have personally suggested that if they are going to be giving out any money and we can't stop them from doing so, then why give it to GM, which has proven only that it has essentially failed at its business? Why not give it to some of the newer, start-up car companies that are out there, like, say, Tesla Motors, or that other company that is building cars out of carbon-fiber and other new materials? Such companies have shown a spirit of innovation. If we do HAVE to put billions into the automobile manufacturing industry, I think $50 billion dollars might be "better spent" on companies like those than on propping up old, tired, and bad companies like GM. What could Tesla Motors do with $50 billion?

I heard Mish ask why the Unions don't just take the money from their pension fund and use it to buy GM and Ford. Then they'd be in control of their own wages, and of what kinds of cars to build.

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