Should The Federal Governement Provide An Automotive Bailout If Needed?

NO!!!!! Sorry...I can't believe I'm saying this but I'm with George Bush comment and decision on this.....

George Bush’s 2006 announcement that he would not support a government bailout of GM or Ford if they were to go bankrupt, claiming they need to “build a product that’s relevant"

The government should never bail out anyone. The government could, however, participate in the watering down of offending company shares by buying new shares at bargain basement prices to raise needed capital to prevent bankruptcy.

In cases where there are too many competitors in an industry sector and hardly anyone making profit and paying taxes, the government should let some companies go under so that survivors can make a living and pay more taxes.

Of course not, this isnt Japan or Europe. In hose places a scenario like this would be guaranteed if not very likely.

Bailouts only encourage more future bailouts and mediocre products and or services.

I agree that bailouts in general are a terrible idea. However in this aspect it may be an necessary evil.

Think of the overall domestic impact the collapse of all 3 domestic manufacturers. Not just locally but nationally. We are talking about companies whose very existance stongly affects the US domestic market. If the big three go down, our market takes a HUGE hit. As if it weren't doing bad enough as is.

That's just one aspect. What happens to all the people who work for these companies...both blue and white collar. There is no jobs they can slide into. So you will see a hughe increase in unemployment as well as a large increase in our taxes to offset the increase of people on unemployment we would then have to support.

That's at a national level. At a local level it would be even more catostrophic. Cities like Detriot and Dearborn would cease to exist (though detriot is not helping itself out in this manner currently). Ask everyone in Pittsburgh what happend when Steel boom busted or just recently when US Airways left. That place has been hemmoraging money and is going to become a ghost town soon. PNC is the only thing holding that place together at all.

These are just some of the issues we face if the Big 3 collapse. So unforutnatly as I said above, bailing out these automotive giants may be a necessary evil.

Right on the monet spectator . Why do think Japan does not want us to "dump" products on their marketplace ? Their economy is in bad shape as it is . Same reason Europe will not let the Japanese flood their market . They have enough auto plants to keep wheels under everybody . It's too late to have anything like that in this country , the damage has been done

I think it's ridiculous that they wouldn't help the auto manufacturers stay on their feet but they'll pump billions to keep the airline industry from collapsing. I'm not saying it's right, Im just saying that it doesn't seem fair to help one industry vital to america and the world but not help another equally important industry.
What the government needs to do is help with some of the costs of new technology. Japan's government has been funding hybrid research for years. Our government just decides one day to raise the CAFE regulations and expect us all to magically meet them. No plan, no help, no impact study, just do it.

If either Clinton or Obama get elected, the auto industry will be the least of our problems.

Don't be ridiculous sold2early. The current administration has ruined the American economy, health care and education, and screwed up strategically by getting bogged down in Iraq instead of finishing off the Taliban in Afghanistan. The Dems are almost certain to take the White House and will have only a small window of opportunity to reverse the damage done. The U.S. is still the number one country on the planet but I want America to regain the moral leadership it once enjoyed worldwide.

EnnNORAK you are dreaming. McCain is a sure bet now that Obama has clinched it.

Read carefully:

OBAMA. CAN'T. WIN.

For sure! If other governments help other auto manufacturers...why not make the playing level even...KP

Fascinating - what a great discourse. I think the answer lies somewhere between doing nothing and a full bailout. Besides, a national health care system (dare I mention it) would put U.S. automakers on a more equal footing with Japanese and European manufacturers.