Using this Power Line post as a taking-off point, let’s discuss a possible bailout of one or more companies in the U.S. auto industry.
I wasn’t sure what to make of the bailout of the financial industry. The argument for unfettered capitalism was tougher there, because without action, innocent businesses were likely to go under due to a scarcity of credit.
The auto bailout strikes me as a different animal entirely. Either the automakers can put out a product that people want to buy, or they can’t. If they can’t, why should taxpayers pay money to ensure that these undesirable products remain on the market?
Naturally occurring forest fires are healthy because they clear out the deadwood, making catastrophic fires less likely. It’s temporary pain for long-term gain.
Similarly, we may need to see one of the automakers go under, for the long-term health of the industry.